Could China compete for the title of nuclear energy partner in Indonesia?
Indonesia Embraces Nuclear Energy: A New Chapter in Southeast Asia's Energy Landscape
The Indonesian government has taken a significant step towards sustainable energy development by establishing the Nuclear Energy Program Implementing Organization (NEPIO). This new entity will oversee the selection of partners, create a project timeline, and ensure the development of the country's first nuclear power plant proceeds as planned.
The government's vision for nuclear energy is ambitious: by 2060, they aim to install 45-54 gigawatts of nuclear capacity. However, the decision to adopt nuclear power will not be made lightly. The National Energy Council (DEN) is considering China's advancements in nuclear technology, but long-term security and global politics will also play a role in the decision-making process.
China's state-planned approach and commitment to alternative technologies and climate goals have made China National Nuclear Corporation (CNNC) a potential partner of choice for Indonesia's first nuclear power plant project. The cost-effectiveness of reactor construction in China, roughly USD 3,828 per kilowatt, is another attractive factor.
However, the Indonesian government is mindful of the growing US-China rivalry and the potential impact on US trade policy, known as "friendshoring." This policy aims to establish supply chains only with allied countries who share the same values. The government is planning to hold an open and transparent "beauty contest" to choose the best partner for its initial nuclear power plant project.
Three potential nuclear development sites have been prioritised, with Muria in Central Java province and Bangka Belitung province as the frontrunners. Over-reliance on a single nation for nuclear technology is deemed too precarious given current global tensions, so the government is considering partners from various countries, including Russia, China, the US, South Korea, Canada, and France.
Nuclear energy is being placed on equal footing with other renewable-energy options, according to Dadan Kusdiana, secretary general at the Ministry of Energy and Mineral Resources. The government has approved an updated policy aiming to have a 250-megawatt nuclear power plant operational by 2032, and construction is expected to start within two years.
The Indonesian government has outlined seven criteria for selecting a partner, including appropriate technological fit, compliance with international safety protocols, robust supply chain, proven experience in EPC, potential for technology transfer, effective waste-management solutions, and sound financial standing.
CNNC has constructed the ACP100, a 125-megawatt small modular reactor (SMR) that passed the International Atomic Energy Agency's safety assessment in 2016. Other companies, such as Rosatom (Russia), EDF (France), and NuScale (US), have also shown interest in Indonesia's nuclear energy program.
If successful, Indonesia's move towards nuclear energy would make it a nuclear leader in Southeast Asia. The country is navigating a complex landscape of geopolitical tensions, economic considerations, and environmental concerns, but the potential benefits are clear: a more sustainable, secure, and self-reliant energy future.
