Energy Cooperation between Indonesia and Timor-Leste: Realization of South-South Cooperation

ALFIAN BUDI SATRIO, Muhammad Rum, S.IP, IMAS.

2019 | Skripsi | S1 ILMU HUBUNGAN INTERNASIONAL

This work aspires to examine the opportunities and challenges as well as the motivation underlying Indonesia's cooperation in energy sector with Timor-Leste on two levels: the first one is on the governmental level through the signing of Memorandum of Understanding on Energy, Petroleum and Mineral Resources Cooperation in 2016, the second one is on the investment level through the establishment of joint venture on Pertamina Indonesia Timor Leste SA (PITSA) in 2015. Using mix of Critical Theory and Functionalist Framework in Development by Jules and Silva, this work has highlighted, on the investment level, the operations of PT. Pertamina in distribution of oil and gas products in Timor-Leste since it was part of Indonesian territory before its independence in 2002 enabled the expansive business, the safeguarding of Timor-Leste's availability in oil and gas products as well as involvement in competition with other oilfield players originating from the Northern states, On the governmental level, it is found Indonesia aspired to sow good relationship, supporting Timor-Leste's economy as well as promoting Timor-Leste's closer ties to ASEAN. Ultimately, the case study reflects an alternative under the framework of South-South cooperation towards Timor-Leste's exploitative relationship with Northern countries, among all Australia.

This work aspires to examine the opportunities and challenges as well as the motivation underlying Indonesia's cooperation in energy sector with Timor-Leste on two levels: the first one is on the governmental level through the signing of Memorandum of Understanding on Energy, Petroleum and Mineral Resources Cooperation in 2016, the second one is on the investment level through the establishment of joint venture on Pertamina Indonesia Timor Leste SA (PITSA) in 2015. Using mix of Critical Theory and Functionalist Framework in Development by Jules and Silva, this work has highlighted, on the investment level, the operations of PT. Pertamina in distribution of oil and gas products in Timor-Leste since it was part of Indonesian territory before its independence in 2002 enabled the expansive business, the safeguarding of Timor-Leste's availability in oil and gas products as well as involvement in competition with other oilfield players originating from the Northern states, On the governmental level, it is found Indonesia aspired to sow good relationship, supporting Timor-Leste's economy as well as promoting Timor-Leste's closer ties to ASEAN. Ultimately, the case study reflects an alternative under the framework of South-South cooperation towards Timor-Leste's exploitative relationship with Northern countries, among all Australia.

Kata Kunci : South-South Cooperation, Critical Theory, Functionalism in Development