In a move that might raise eyebrows among geologists who worry about building nuclear power facilities in earthquake-prone countries, the Indonesian government included atomic energy in its 2040 New Renewable Energy (EBT) strategy, bringing forward a target for the commercial operation of nuclear power plants to 2032. The previous target year was 2039.
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The decision aims to fast-track Indonesia’s progress in working towards its 2060 national net-zero target, according to the former Minister of Energy and Mineral Resources of Indonesia, Arifin Tasrif.
“I believe nuclear energy will be necessary for us in the future. We have prepared a plan for nuclear energy use beyond 2040. If the technology is safe and commercially competitive, I see no reason why we should hold back,” said Tasrif.
Previously, nuclear energy was classified as the energy source of last resort, as regulated in government regulation number 79 of 2016 in Indonesia’s national energy policy. However, this regulation is now being revised, as nuclear energy could potentially help towards the country’s nationally determined contribution (NDC) to the Paris climate accord. Additionally, the use of nuclear energy is included in the New Energy and Renewable Energy Bill (EBET), which is currently being drafted by the House of Representatives.
To build a nuclear power plant, 18 specific requirements must be met, from safety measures to securing a supply of uranium. Indonesia has fulfilled 16 of them. One of the two remaining requirements that needs to be met is establishing a nuclear energy programme implementing organisation, or NEPIO. This government body is responsible for laying the foundations for power plant development. A final decision on this has yet to be made by President Joko Widodo.
The other remaining requirement is the “go nuclear” declaration, where the Indonesian government publicly declares the country’s readiness to use nuclear energy. However, whether this statement needs to be included in a presidential regulation is still under discussion.
Concerns over small modular reactor development in West Kalimantan
In March 2023, Indonesia and the United States Trade and Development Agency (USTDA) signed a partnership agreement to develop small modular reactors (SMRs) through the Foundational Infrastructure for the Responsible Use of SMR Technology (FIRST) programme.
The agreement includes a US$2.3 million grant to implement the programme at Gosong Beach, West Kalimantan, where a small modular reactor from NuScale, in the form of a VOYGR Power-6 power plant, is currently being developed. This development has raised significant concerns among environmentalists and civil society groups, who fear the potential for a disaster on the scale of Chernobyl or Fukushima.
However, the plan to build a nuclear power plant in Kalimantan on the island of Borneo is not new. It has been in the works for more than a decade, but has been on ice since the failure of a nuclear power plant project in Muria, Central Java, due to widespread protests by local villagers and civil organisations in 2012.
“The government has not been transparent with local villagers, so we don’t know much detail on the nuclear development plan,” says Hendrikus Adam, executive director of the West Kalimantan chapter of Walhi, an Indonesian environmental NGO. “They have been very secretive, sharing unbalanced information with the public.”
While building a nuclear power plant on Kalimantan might seem safer compared to other seismically active islands, Kalimantan is still prone to natural disasters, including earthquakes and floods, particularly in the area designated for the plant. It also poses significant risks to the people and surrounding biodiversity, says Adam.
Another factor influencing this development could be the newly-developing Nusantara capital city in Kalimantan, which has spurred new projects in surrounding areas, particularly with several national strategic projects located in West Kalimantan, including the Kijing International Port and Smelter Grade Alumina Refinery.
“From our observation, the purpose of the nuclear power plant development is to fulfill the interests of certain groups, particularly industry, rather than serving the public good,” says Adam. “If the government truly wants to provide equal access to electricity for everyone, including in remote areas, it should maximise the potential of renewable energy sources readily available, such as building hydropower plants.”
Nuclear, an unnecessary path to decarbonisation?
The ambition to build a nuclear power plant in Indonesia has blown hot and cold for decades, and traces back to the post-colonial era. Indonesia has been developing nuclear technology since the 1950s and has built three nuclear reactors for research purposes: in Bandung in 1965, Yogyakarta in 1979, and Banten in 1987.
The push towards nuclear continued with the attempt to build an atomic power plant in Muria, Central Java, which was discontinued in 2012. However, the ambition to develop nuclear energy capacity did not end there.
“Over the last 10 years, there have been strong efforts to lobby the House of Representatives, the National Energy Council, and the Indonesian government to build a nuclear power plant. One of the strongest lobbyists is the US-based advanced reactor developer, Thorcon, which has influenced the policy-making process in Indonesia,” says Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), a non-profit.
But Indonesia does not need nuclear energy to transition to green energy, argues Tumiwa. Based on a study conducted by IESR, Indonesia has sufficient renewable energy resources to decarbonise by 2050. This conclusion has also been reached by studies conducted by the International Energy Agency and the International Renewable Energy Agency, which did not include nuclear as a clean energy option in their calculations.
According to data from the Ministry of Energy and Mineral Resources, Indonesia’s solar energy potential could eclipse 3,300 gigawatts (GW). Indonesia also has abundant hydropower resources, with only 7 to 8 GW currently utilised out of a potential 100 GW. Onshore wind power, which has to date been largely untapped in Indonesia, could generate up to 60 to 80 GW. Another viable option is biomass, produced from agricultural waste and plants, which is particularly abundant in the world’s biggest palm oil producing nation.
“The required clean energy generation capacity to achieve net zero by 2060 is approximately 500-600 GW. So, if we have a potential of 3,800 gigawatts but only build 500-600, we have clean energy capacity to spare,” says Tumiwa.
Compared to nuclear energy, renewable energy is generally considered safer, more affordable, and quicker to implement, particularly given Indonesia’s vast green energy potential. However, nuclear power plants can generate a significant amount of energy with minimal resources, and are more efficient and less dependent on weather conditions than renewable energy sources. However, the high costs and associated risks make the decision to build nuclear power plants a matter of ongoing debate.
Geopolitics and energy security in building nuclear
The ambition to build nuclear power comes with geopolitical risks. Currently, Indonesia is considering partnering with Russia to build nuclear facilities, just a year after securing a deal with the United States for small modular reactor development in West Kalimantan.
Additionally, building nuclear power plants could compromise Indonesia’s energy security. The country currently lacks the technical capabilities to build nuclear plants independently, making it heavily dependent on foreign skills and imports.
“We are dependent on nuclear technology from foreign countries. Even if, in the coming years, Indonesians study nuclear technology, we still don’t possess the skills ourselves. So, in the end, we will remain dependent,” says Adam.
Furthermore, nuclear technology is typically associated with armed conflict, which could lead to concern over nuclear proliferation and strict international monitoring, posing additional geopolitical risks.
“We have the opportunity to develop renewable energy technology in Indonesia, covering the entire supply chain from start to finish. By achieving energy sovereignty, we can develop our own industry, reducing our dependence on imports and foreign technology,” says Tumiwa.
