JOURNAL OF ASEAN STUDIES (JAS) Editor in Chief Tirta N. Mursitama Managing Editors Bina Nusantara University, Indonesia Lili Yulyadi Arnakim Bina Nusantara University, Indonesia Moch Faisal Karim Layout Editors Vena Meilissa Wendsney Arviany Sadi Associate Editors Bina Nusantara University, Indonesia Donatus K. Marut University of Indonesia, Indonesia Kiki Verico Brawijaya University, Indonesia M. Faishal Aminuddin University at Albany, SUNY, United States Mutti Anggita Vrije Universiteit Amsterdam, Netherlands Pamungkas A. Dewanto Bina Nusantara University, Indonesia Paramitaningrum National Planning Agency, Republic of Indonesia Sumedi A. Mulyo Bina Nusantara University, Indonesia Wendy A. Prajuli Advisory International Editorial Board BINUS Business School, Indonesia Ahmad Syamil Swinburne University of Technology, Australia Alfons Palangkaraya American University, United States Amitav Acharya University of Indonesia, Indonesia Andi Widjajanto Sebelas Maret University, Indonesia Andrik Purwasito Jana Wyżykowskiego University, Poland Arkadiusz Kotlinski Airlangga University, Indonesia Baiq L. S. Wardhani University of Le Havre, France Darwis Khudori Paramadina University, Indonesia Dinna Wisnu Foreign Policy Community of Indonesia, Indonesia Dino P. Djalal University of Hawai’i at Manoa, United States Ehito Kimura Jawaharal Nehru University, India Gautam K. Jha Bina Nusantara University, Indonesia Harjanto Prabowo Ritsumeikan University, Japan Jun Honna University of Indonesia, Indonesia Juwono Sudarsono Dr. GR Damodaran College of Science, India K. K. Ramachandran Australian National University, Australia Lorraine Elliott Yunnan University, China Lu Guangsheng ISEAS-Yusof Ishak Institute, Singapore Malcolm Cook National University of Singapore, Singapore Marleen Dieleman Ministry of Foreign Affairs, Republic of Indonesia Marty Natalegawa Universiti Teknologi Malaysia, Malaysia Nanthakumar Loganathan Australian National University, Australia Pierre van der Eng Centre for Strategic and International Studies, Indonesia Rizal Sukma Kaohsiung SEAS, Taiwan Samuel C. Y. Ku Budapest Business School, Hungary Tamas Novak Cheng Shiu University, Taiwan Wan-Ping Tai Padjadjaran Univeristy, Indonesia Yanyan M. Yani JOURNAL OF ASEAN STUDIES Volume 7 Number 1 2019 Contents EDITORIAL Tirta N. Mursitama ARTICLES Understanding Sustainability-oriented Innovation (SOI) Using Network Perspective in Asia Pacific and ASEAN Systematic Review 1-17 Budi Harsanto, Chrisna T. Permana Beyond Brinkmanship: The Implication of South China Sea Conflicts on China’s Soft Power in Southeast Asia 18-39 Randy W. Nandyatama A Value Chain Approach to Support Southeast Asian Economic Regionalism 40-57 Craig A. M. Jones Repositioning Indonesia – Thoughts on the Indo-Pacific 58-72 Anthony Milner Business and Human Rights in ASEAN: Lessons from the Palm Oil Sector in Malaysia 73-85 Andika Ab. Wahab PRACTICE NOTE What Does ASEAN Economic Community Bring to Older Workers? Examining Inequality in Old Age in Thailand’s Fast-Ageing Society 86-97 Wenqian Xu, Sikander Islam journal.binus.ac.id/index.php/jas http://journal.binus.ac.id/index.php/jas Aim and Scope The Journal of ASEAN Studies (JAS) is an International peer-reviewed bi-annual journal that enriches understanding of the past, current, and future issues relevant to ASEAN and its circle of issues. The article shall address any research on theoretical and empirical questions about ASEAN. The Topics addressed within the journal include: diplomacy, political economy, trade, national development, security, geopolitics, social change, transnational movement, environment, law, business and industry, and other various related sub-fields. Journal of ASEAN Studies expects the articles encourage debate, controversy, new understanding, solid theory, and reflection on ASEAN. The articles sent should have a sharp analysis and rigorous methodologies quantitative or qualitative as well as written in an engaging and analytical style. The JAS does publish original research, reviewing research, book review, opinion pieces of current affairs. However JAS does not publish journalistic or investigative style of article. The JAS would not be responsible for any implied or written statements of articles published. Each author would be responsible for their own writing. Journal of ASEAN Studies is an international multidisciplinary journal, covering various fields of research on ASEAN either as community, organization, process, and web of cooperation. Journal of ASEAN Studies publishes the following types of manuscripts:  Scholarly articles: The manuscripts should be approximately 5,000-8,000 words. The manuscripts must contain a review of the current state of knowledge on the research question(s) of interest, then share new information or new ideas that will impact the state of theory and/or practice in area of ASEAN Studies.  Review Article: The manuscripts should be approximately 1,500-3,500. The manuscripts must contain the current state of understanding on a particular topic about ASEAN by analysing and discussing research previously published by others  Practice notes: These are shorter manuscripts approximately 1,500-3,500 words that are of specific interest to practitioners. These manuscripts must present new development for the ASEAN.  Research notes: Similar to practice notes, these are shorter manuscripts approximately 1,500-3,500 words that have specific implications for ASEAN. The manuscripts should employ rigorous methodology either qualitative or quantitative.  Book Review: The manuscripts should be approximately 1,500-4,000. The manuscripts must contain a critical evaluation of book by making argument and commentary on the particular book discussed. Centre for Business and Diplomatic Studies Centre for Business and Diplomatic Studies (CBDS) is established as part of the International Relations Department, Bina Nusantara (BINUS) University. Our aims are to undertake and promote research and deliberation on diplomacy, business, international relations and developmental issues particularly in Indonesia, Southeast Asia and Asia Pacific. We also commit to build, connect and share research and others kinds of knowledge generating activities for the betterment of life of the people and earth. Our immediate constituency is International Relations Department, BINUS University and the larger constituency is the broader academic community of the BINUS University and other universities and institutions both national and international as well as policy community. CBDS publishes scholarly journal, working papers, commentaries and provides training and consultancies services in the areas of diplomatic training, negotiations, commercial diplomacy, conflict resolutions for business, business and government relations, promoting competitive local government in attracting foreign investment, and understanding impact of regional economic integration on development specifically toward ASEAN Community 2015. CBDS Secretariat Kijang Campus, Binus University Jl. Kemanggisan Ilir III No. 45, Kemanggisan / Palmerah Jakarta Barat 11480 +62.21 534 5830 ext. 2453 +62.21 534 0244 http://ir.binus.ac.id/cbds http://ir.binus.ac.id/cbds Editorial Contextual Development in Southeast Asia Greetings from Journal of ASEAN Studies. We are pleased to present the latest volume on contextual development in Southeast Asia. In this volume 7 no. 1, 2019, several issues related to contextual regional development i.e. security, economic and social cultural aspects are discussed by various perspectives as the authors came from different countries with distinguish approaches, looking at recent development of Southeast Asia. This volume is comprised of five articles and one practice note. First article is written by Budi Harsanto and Chrisna T. Permana entitled, “Understanding Sustainability-Oriented Innovation (SOI) Using Network Perspective in the Asia Pacific and ASEAN: Systematic Review”. Both Budi and Chrisna explain how SOI is mobilized and practiced throughout different social, institutional, and political contexts. With the most dynamic part of the global economy, Asia Pacific has become the prominent parts of the ASEAN. The authors also explained that SOI has been rapidly developing into practices in countries in the Asia Pacific, both in profit and nonprofit sectors. Next article is on security in Southeast Asia as an implication from South China Sea conflict discussed by Randy W. Nandyatama. His study shows the nature of China’s soft power, and the correlation amongst the increasing Chinese assertive measures in the South China Sea and the foundation of China’s soft power in the region. On the other issue, Craig Jones discusses in the next article on ASEAN economic integration. His research aims at determining how Southeast Asian regionalism can circumvent vulnerabilities in North America and the European Union on economic crisis. Furthermore, Anthony Milner discusses in his paper about the changing regional and global environment which Indonesia today confronts – stressing the faltering of globalization and the return of history. What are the strengths and weaknesses of this exercise of transformative leadership? There is a risk that Indo-Pacific aspirations could impact the centrality of ASEAN and result in a higher leadership contest between the major states. ASEAN-led institutions – which have emerged organically – reflect the current complexity of the region. In addition, the last article written by Andika Ab. Wahab, provides lessons for ASEAN member states to contemplate when developing their National Action Plan on Business and Human Rights (NAPBHR), in particular under Pillar 2 of the UNGP-BHR. In this article, he argues that while some large palm oil companies have shown modest progress that emerge in many forms including the lack of leadership, collaboration and ambition to steer and scale up industry transformation on human rights across the supply chain. As such, the development of NAPBHR among the ASEAN member states should reflect on this reality and challenges. Finally, the practice note written by Wenqian Xu and Sikander Islam investigates the emergent inequality within and across age cohorts shaped by the AEC structural forces, including academic publications, policy analysis, and scientific reports. Wenqian and Sikander are particularly concerned about the heterogeneity and poverty in old age. In conclusion, the authors suggest policy recommendations for mitigating inequality in old age and advocate a critical lens. Finally, as the editor-in-chief, I would like to express my gratitude to all authors who submitted their manuscripts to the Journal of ASEAN Studies (JAS). I would also like to express my highest appreciation to all reviewers who have contributed to the quality of the manuscripts published in JAS. All parties that supported the Journal from the Indonesian Association for International Relations (AIHII) and the Center for Business and Diplomatic Studies (CBDS) of the Department of International Relations, Bina Nusantara University are also very much appreciated. Jakarta, 31 July 2019 Prof. Dr. Tirta N. Mursitama, Ph.D. Editor-in-chief