Jakarta is accelerating its pursuit of nuclear energy, attracting interest from both Russia and Western firms as the nation seeks to diversify its energy sources and meet growing demand. This competition comes as Indonesia aims to incorporate approximately 7 gigawatts (GW) of nuclear capacity into its energy mix by 2040, a significant step in its long-term energy transition, according to recent planning updates from the National Energy Council (DEN).
The push for nuclear power is a key component of President Prabowo Subianto’s “Four Pillars of Energy” strategy, which prioritizes national energy sovereignty, resilience, independence, and self-sufficiency. Currently reliant on coal for a substantial portion of its electricity, Indonesia is targeting an initial 500 megawatts (MW) of nuclear power by 2032, with the first phase of the program slated to include two 250 MW nuclear plants in Sumatra and West Kalimantan as pilot projects.
Rosatom’s Continued Offer and SMR Potential
Russia’s state-owned nuclear energy corporation, Rosatom, has reaffirmed its willingness to assist Indonesia in developing its nuclear capabilities. Alexander Tsybulya, a project director at Rosatom, stated the company could provide a range of reactor technologies, including large-scale nuclear units. However, he suggested that floating little modular reactors (SMRs) might be the most expedient option for Indonesia, given its archipelagic geography. These reactors, mounted on floating platforms, offer greater flexibility in deployment across the country’s numerous islands. Rosatom’s leader, Vladimir Putin, has reportedly made the nuclear business pitch to President Prabowo Subianto on at least two occasions.
Rosatom’s VVER-1200 reactor is its most advanced technology to date, and the company is prepared to offer it for larger-scale nuclear power plants as Indonesia’s needs evolve. The company has been actively engaging with Jakarta, emphasizing the benefits of nuclear energy as a clean power source, a technology Russia has utilized for decades.
Competition from Western Firms
Whereas Russia is actively courting Indonesia, several Western nations – including the United States, Japan, China, South Korea, and Canada – are also vying to participate in the country’s nuclear energy program. This competition reflects the growing global interest in supporting Indonesia’s energy transition and securing a foothold in a potentially lucrative market. Indonesia’s Energy Ministry has indicated it welcomes technology from any source, according to senior official Senda Hurmuzan Kanam.
Institutional Preparations and the NEPIO
Jakarta is currently focused on establishing the institutional framework necessary to oversee its nuclear energy program. This includes the formation of an energy transition task force and the finalization of the Nuclear Energy Program Implementation Organization (NEPIO). These steps are crucial for ensuring the safe, secure, and responsible development of nuclear power in Indonesia. A key hurdle remains the establishment of a national watchdog to regulate the nuclear sector, a prerequisite for fully exploring nuclear energy options.
A bilateral agreement between Russia and Indonesia, signed recently, signals a “new phase of cooperation” in the nuclear field, according to Russian officials. The agreement covers collaboration in nuclear science and engineering, including nuclear energy production and technology.
Geopolitical Context and Regional Stakes
Indonesia’s move towards nuclear energy is occurring against a backdrop of increasing global energy demand and a growing emphasis on reducing carbon emissions. The country’s decision on which partners to engage with will have significant geopolitical implications, potentially strengthening ties with either Russia or Western nations. The competition for Indonesia’s nuclear business also reflects a broader trend of great power competition in Southeast Asia, where both Russia and the West are seeking to expand their influence.
The development of nuclear power in Indonesia also has regional implications, potentially influencing energy security and cooperation within the Association of Southeast Asian Nations (ASEAN).
Looking ahead, the establishment of the NEPIO and the national watchdog will be critical next steps for Indonesia. The selection of technology partners and the commencement of construction on the pilot nuclear plants will further define the country’s energy future and its role in the regional energy landscape.
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