Author: PPD Team Date: 05/05/2025
Indonesia is set to significantly expand its renewable energy capacity by 2040, with plans also to introduce 10GW of nuclear power, according to a Reuters report.
In February 2025, the country announced plans to build nuclear power plants with a capacity of 4.3GW, aiming to diversify its energy mix and reduce reliance on fossil fuels. These developments are part of Indonesia’s broader strategy to achieve carbon neutrality by 2050.
Hashim Djojohadikusumo, the special energy and climate envoy of President Prabowo Subianto, outlined that Indonesia plans to add 103GW of power capacity by 2040. Of this, 75GW will come from renewables such as solar, wind, geothermal, and biomass. The country also plans to deploy 10GW of nuclear power, with the remaining 18GW expected from gas.
Indonesia, one of the world’s largest greenhouse gas emitters, relies heavily on coal for energy. Nuclear energy developers such as Rosatom and China National Nuclear Corporation have shown interest in the country’s nuclear plans. Locations for nuclear plants are being considered, with floating small modular reactors suggested for the eastern regions due to volcanic risks.
The country is also transitioning from coal, with a $20bn Just Energy Transition Partnership (JETP) deal for the early retirement of the Cirebon-1 coal-fired plant.
Indonesia’s electricity demand is rising rapidly. While per capita electricity consumption has increased from 5,500 kWh in 2000 to 10,100 kWh in 2023, it remains well below neighbouring countries. The country currently generates around 80% of its electricity from fossil fuels. In December 2024, Indonesia’s Energy Council proposed 29 potential sites across the archipelago for the construction of nuclear power plants.
Currently, Indonesia operates several nuclear-related facilities. The National Nuclear Energy Agency (BATAN) runs three research reactors in Serpong, Bandung, and Yogyakarta, with capacities ranging from 100 kW to 30 MW. The country also has front-end nuclear capabilities, including ore processing and fuel fabrication, though these are at the laboratory scale.