The 2024 ASEAN Defense Senior Officials’ Meeting (ADSOM) and ADSOM-Plus, held on September 25-26 in Vientiane, Laos, marked another step forward in reinforcing regional defense cooperation under the theme, “ASEAN: Together for Peace, Security, and Resilience.” Chaired by Lao PDR, the meetings emphasized ASEAN’s commitment to addressing complex regional security challenges through enhanced collaboration and military capacity-building. The discussions also laid the groundwork for further cooperation with external partners, providing opportunities for U.S. firms to engage with ASEAN’s evolving defense ecosystem.
Key Developments and Initiatives
At the conference, officials reached a consensus on the draft ADMM Joint Statement and agreed to add the Standard Operating Procedures of the ASEAN Military Standing Group on Humanitarian Assistance and Disaster Relief (HADR) to the appendix of Chapter VI of the contingency arrangements. This move enhances ASEAN’s capacity for disaster relief and emergency response coordination across the region. These initiatives provide direct opportunities for U.S. companies to offer logistical support, technology solutions, and expertise in humanitarian operations, in line with ASEAN’s defense modernization goals.
The discussions also covered preparations for the upcoming ADSOM+, ADMM, and ADMM-Plus meetings, as well as the Observer program for the 2024-2027 cycle, offering U.S. firms potential engagement avenues in ASEAN’s defense ecosystem. The Experts’ Working Groups (EWGs) Observership Programme, co-authored by the Philippines, Lao PDR, and Singapore, further opens the door for external partners to contribute to ASEAN’s capacity-building efforts.
U.S. Involvement and Opportunities
The U.S. Department of Defense remains a key dialogue partner, with representation at the ADSOM-Plus meetings. While there were no major announcements from the U.S. DOD during this session, opportunities abound for U.S. companies to engage in ASEAN’s defense modernization efforts. The emphasis on humanitarian assistance, cybersecurity, and peacekeeping operations opens the door for U.S. firms to provide advanced technologies and training programs that align with ASEAN’s capacity-building goals.
Concept papers adopted during the ADSOM-Plus meetings focused on enhancing cooperation in military medicine, peacekeeping, cybersecurity, and HADR. U.S. firms with expertise in these areas are well-positioned to contribute to ASEAN’s defense development, especially given ASEAN’s growing focus on cybersecurity and disaster preparedness.
Looking Ahead
As ASEAN prepares for the 18th ASEAN Defense Ministers’ Meeting (ADMM) and ADMM-Plus in November 2024, the discussions from ADSOM 2024 offer U.S. companies significant opportunities to engage in Southeast Asia’s evolving defense landscape. The success of these meetings, according to Dave Laksono, a lawmaker from Indonesia’s House of Representatives Commission I, provides a “strong foundation for the smooth and successful ADMM and ADMM-Plus 2023.” With a focus on ASEAN unity and collective security, U.S. firms should prioritize collaboration that aligns with ASEAN’s strategic vision, ensuring mutual benefit for both regional and U.S. defense objectives.
China’s Disruption of Subsea Cables – Strategic Test for the U.S.
China’s increasing assertiveness in the South China Sea has begun to impact critical global infrastructure—subsea fiber-optic cables, which carry more than 95% of international internet communications, including sensitive military and economic data. These cables, essential for Southeast Asia’s connectivity, have become a focal point in the geopolitical contest between the United States, China, and other regional powers. Chinese delays in permitting, harassment of repair vessels, and restrictions on new cable projects have caused costly delays in repairs and stalled new developments, pushing telecommunications companies to reroute or postpone critical projects.
The growing risks associated with operating in the South China Sea have led companies to explore alternative cable routes that avoid the region, but these longer, more expensive detours raise costs and complicate logistics. The implications of these disruptions extend beyond telecommunications, potentially affecting U.S. military operations and strategic communications in the region, which are heavily reliant on subsea cables for secure data transmission.
Opportunities for U.S. Firms
While China’s interference has escalated tensions, it also opens doors for U.S. defense and tech companies to step in. The U.S. government’s pressure on regional allies like Vietnam to avoid Chinese firms such as HMN Technologies in future cable projects has led to a growing demand for American expertise in building secure, resilient undersea networks. U.S. companies specializing in cybersecurity, encryption, and defense communications are in good position to capitalize on these developments by offering secure alternatives to Chinese-built systems, strengthening partnerships with Southeast Asian nations, and enhancing regional connectivity.
The U.S. government has already encouraged Vietnam, Japan, and Taiwan to protect their cable networks from Chinese espionage, and U.S. defense firms can expect growing demand for secure, surveillance-proof cables. For example, Vietnam’s plan to build 10 new undersea cables by 2030, as part of its digital infrastructure strategy, presents significant business opportunities for U.S. firms, provided they can offer solutions that prioritize both security and resilience against potential Chinese interference.
Long-term Risks
The delays caused by China’s restrictions have resulted in significant operational costs and increased the risk of strategic disruptions, as seen with the Southeast Asia-Japan 2 (SJC2) system, which is now years overdue. These delays underscore the geopolitical stakes for U.S. companies operating in the region. Securing partnerships with Southeast Asian nations for future cable projects would create business opportunities and enhance regional security by ensuring critical infrastructure remains out of Chinese control.
At the same time, the U.S. needs to balance its strategic interests with regional sensitivities. Countries like Vietnam and Indonesia, while eager to modernize their telecommunications infrastructure, remain cautious about being drawn into U.S.-China tensions. Companies will need to secure high-quality alternatives while avoiding further escalation of regional conflicts.
Looking Ahead
The disruption of subsea cables in the South China Sea highlights the strategic importance of undersea infrastructure in modern conflicts. The challenge lies in leveraging this opportunity to provide secure, resilient cable solutions in Southeast Asia, while navigating the region's geopolitics.
Strategic Diversification of Indonesia’s Defense Partnerships
Indonesia's recent ratification of five key bilateral defense agreements with Cambodia, India, France, the UAE, and Brazil represents a significant shift in its defense strategy. These agreements, ratified by Indonesia’s House of Representatives in September 2024, reflect Jakarta’s growing commitment to diversify its defense partnerships and enhance national security through collaboration with multiple global defense powers. For U.S. firms, this introduces both new competition and fresh opportunities for engagement in a rapidly changing defense landscape.
France has already secured a major deal for the sale of 42 Rafale fighter jets to Indonesia, with deliveries scheduled to begin in 2026, while India is stepping up its defense cooperation through technology transfers and strategic partnerships. These developments point to Indonesia’s desire for advanced military capabilities and signal a potential shift away from over-reliance on traditional suppliers like the U.S., which could result in a reduced market share for U.S. firms.
Despite the increased competition, Indonesia’s new partnerships present new opportunities. Collaborations with firms from France, India, and the UAE implies opportunities for joint ventures, co-production agreements, and technology-sharing initiatives. Increased demand for advanced military technology, cybersecurity solutions, and modern defense systems will likely continue to expand as Indonesia focuses on military modernization.
New partnerships with nuclear-capable nations like India and France underscore the growing demand for sophisticated defense technologies. This opens the door for U.S. companies to offer advanced solutions in key areas such as missile defense, air surveillance, and military infrastructure.
