Indonesia is in talks with the US and Russia to acquire nuclear power technology, targeting the operation of nuclear power plants by 2036, as reported by Reuters.
Vivi Yulaswati, deputy minister at the Ministry of National Development Planning, revealed that the country is evaluating both small modular reactors and conventional nuclear technology to reduce reliance on fossil fuels.
However, Indonesia’s seismic activity poses significant challenges for adopting nuclear energy.
Approval from the president and international collaboration are prerequisites before placing orders, with Yulaswati emphasizing that the journey remains in its early stages.
Indonesia relies heavily on coal, powering more than half of its current capacity, while clean energy sources like hydropower account for less than 15%.
To boost renewable energy, the country aims to attract international investors to develop 75 GW of renewable energy by 2039.
Funding remains a critical hurdle. Under the G7’s $20 billion Just Energy Transition Partnership (JETP), $217.8 million in grants have been approved for 33 decarbonization projects, including electric vehicle initiatives in Bali.
Another six projects worth $78.4 million are under consideration, with loans of up to $6.1 billion approved for grid upgrades and renewable energy development. However, disbursement has been delayed, and interest rates for the loans are yet to be finalized, leading to criticism of the lack of concessional funding.
JETP projects are expected to commence in 2025, aligning with Indonesia’s next five-year economic planning cycle.