Indonesia wants its first nuclear plant running by 2032, but technical and geopolitical challenges loom
.jpg)
Workers repair the household electricity network in Bogor, Indonesia (Image: Kuncoro Widyo Rumpoko / Pacific Press / Alamy)
Indonesia is pushing forward with plans to develop nuclear energy as part of efforts to cut power-sector emissions. But with tight deadlines and high technical demands, choosing the right international partner will be critical to success.
In late April, the government approved an updated policy that aims to have a 250-megawatt nuclear power plant operational by 2032, with construction to start within two years. By 2060, the government envisions installing 45-54 gigawatts of nuclear capacity.
“Nuclear and new-energy sources are placed on equal footing with other renewable-energy options, aimed at balancing and achieving decarbonisation targets,” Dadan Kusdiana, secretary general at the Ministry of Energy and Mineral Resources, told lawmakers in early May.
Indonesia’s move would make it a nuclear leader in Southeast Asia. Vietnam plans to build two reactors with Russian support by 2030. The Philippines is revitalising its Bataan plant and partnering with US-based NuScale on a USD 7.5 billion small modular reactor (SMR) project, targeted for 2032. Malaysia is taking a more cautious approach that only considers nuclear power as a possibility after 2035.
Choosing the right partner
Indonesia must act quickly and strategically to meet its tight schedule. Syaiful Bakhri, head of the Nuclear Energy Research Organisation (ORTN) at the National Research and Innovation Agency (BRIN) outlined seven criteria for selecting a partner. These are an appropriate technological fit with Indonesia’s unique energy demands; compliance with international safety protocols; a robust supply chain; proven experience in engineering, procurement, and construction (EPC); potential for technology transfer and local workforce participation; effective waste-management solutions; and sound financial standing and adaptability.
Syaiful added that modern, established reactor designs including Generation III+ technologies are currently preferred, with SMRs viewed as a feasible near-term solution due to their shorter construction times, which is generally less than five years compared to a decade for large-scale plants.
However, few countries have successfully engineered SMRs. China and Russia are prominent contenders in this field. China National Nuclear Corporation (CNNC) has constructed the ACP100, a 125-megawatt SMR that was the first of its type to pass the International Atomic Energy Agency’s safety assessment, in 2016. Russia has deployed SMRs on icebreakers and is exporting large-scale reactor technologies globally.
Hashim Djojohadikusumo, President Prabowo’s special envoy for climate and energy – and his younger brother – said in May that Rosatom (Russia), CNNC (China), Rolls-Royce (UK), EDF (France) and NuScale (US) have shown interest in Indonesia’s programme.
Why China stands out
Syaiful, pointing to a 2024 study by Aidan Morrison from the Centre for Independent Studies, said that China possesses a competitive advantage in supply-chain readiness and EPC due to its integrated industry, government support, standardised designs and multi-unit construction, compared to the US, UK, Japan, Canada, Russia, France and South Korea.
Cost is also a significant factor, with reactor construction in China roughly USD 3,828 per kilowatt. While slightly more expensive than in France (USD 3,519) and South Korea (USD 3,401), it is notably lower than in many other nations. “The only countries operating in the USD 3,000 range are likely China, France, and South Korea,” said Syaiful.
Furthermore, Indonesia and China have a history of cooperation on nuclear technology, particularly between the BRIN (National Research and Innovation Agency) and CNNC since 2016. This cooperation has focused on reactor types, including the high-temperature gas-cooled reactor (HTGR), pressurised water reactor (PWR), and floating reactors, as well as fuel research.
.jpg)
A model of a high-temperature gas-cooled reactor displayed at the 2023 China International Nuclear Power Industry and Equipment Expo in Yantai, Shandong (Image: Cynthia Lee / Alamy)
Since 2017, Indonesia has partnered with Tsinghua University’s Institute of Nuclear and New Energy Technology (INET) through a joint laboratory for HTGR development and researcher training. “As long as the technology hasn’t reached full commercial deployment, there’s room to explore,” Syaiful said. “The goal is to be on an equal footing with them.”
China’s Ministry of Science and Technology recognised the joint lab under the Belt and Road Initiative, upgrading it to a strategic partnership. This recognition facilitates HTGR refinement and potential deployment in Indonesia.
In mid-2024, during a discussion with BRIN, Su Jun, a senior researcher at INET, highlighted that the collaborative effort had been developing for over ten years. Su said: “This is no longer just a technical plan on paper. In China, HTGR technology has already been brought to life. If we stay committed and continue strengthening this collaboration, the technology could soon become a reality in Indonesia and beyond.”
Open and transparent selection process
Indonesia’s National Energy Council (DEN) is carefully considering China’s advancements in nuclear technology. However, they emphasise that the decision to adopt nuclear power will consider not only technology and cost but also long-term security and global politics. There are particular concerns over the growing US-China rivalry, and the impact this will have in light of the US trade policy of “friendshoring,” where the US establishes supply chains only with allied countries who share the same values. Over-reliance on a single nation for nuclear technology is deemed too precarious given current global tensions.
To reduce these risks, the government intends to hold a “beauty contest” – an open and transparent selection process with defined criteria – to choose the best partner for its initial nuclear power plant project. This strategy aims to limit geopolitical vulnerability while optimising economic, technical and political advantages.
“We cannot engage in behind-the-scenes deals with just one party,” Agus Puji Prasetyono, DEN member said. “Everything must be transparent. With a fair evaluation system, no one can protest once a decision is made.”
The Indonesian government, through the Nuclear Energy Program Implementing Organization (NEPIO), will invite various nuclear-technology providers, including CNOS (China), NuScale and Torchon (US), Rosatom (Russia), KHNP (South Korea), and companies from Canada and France. NEPIO is a temporary, multi-departmental task force that will oversee partner selection, create a project timeline and ensure development of the nuclear power plant proceeds as planned.
“If NEPIO functions properly, we can avoid delays, stick to our construction timeline, and shield the project from geopolitical interference,” said Agus.
Indonesia has prioritised three of 28 potential nuclear development sites with Muria in Central Java province and Bangka Belitung province as the frontrunners due to their geotechnical stability and low human activity. Muria could host large reactors to meet high electricity demand in Java and Sumatra, though SMRs might cause fluctuations or imbalances in grid systems that are designed for large power supplies. Bangka Belitung offers greater flexibility for a phased development using both large and small reactors and in Gelasa Island contains a likely location for Indonesia’s first plant. Feasibility studies by Torchon and CNNC are underway.
But the final decision would rest on who can deliver a safe, economical and sustainable solution. “The plant cannot be subsidised. The selected partner must be able to offer electricity at a tariff lower than PLN’s basic production cost,” said Agus, referring to Indonesia’s state-owned electric utility company. “Seven cents per kilowatt hour would be ideal. We cannot afford for this project to become a fiscal burden.
Author: Hendra Friana
This article was originally published on Dialogue Earth under the Creative Commons BY NC ND licence. Read the original article.
.jpg)
