US-Indonesia Partnership Igniting Indonesia's Nuclear Industry Development
Indonesia has established an ambitious objective of attaining Net Zero Emissions by 2060, emphasizing the pressing need to explore alternative energy options. The current energy landscape in Indonesia heavily depends on fossil fuels, making up 85% of the overall mix. In this context, nuclear energy emerges as a promising solution, presenting significant potential for generating electricity on a large scale while maintaining an impressive low carbon footprint. By embracing nuclear power, Indonesia can bolster its energy security and accelerate progress toward its sustainability objectives. Yet, embarking on this transformative journey requires more than national efforts alone. Recognizing the complexity and paramount importance of the nuclear energy sector, Indonesia seeks the support of global partnerships to unlock its true potential. Collaboration on an international scale becomes instrumental in facilitating knowledge sharing, driving technological advancements, aligning regulatory frameworks, and fostering capacity building.
In March 2023, the United States and Indonesia unveiled a strategic partnership to assist Indonesia in developing its nuclear energy program. Coordinating Minister for Economic Affairs Minister Airlangga Hartarto, U.S. Ambassador to Indonesia Sung Y. Kim, U.S. Department of State Principal Deputy Assistant Secretary Ann Ganzer, and the U.S. Trade and Development Agency (USTDA) formally announced the Memorandum of Agreement and affiliated grants and contract signing as a deliverable under the Partnership for Global Infrastructure and Investment (PGII). The agreement advances the goals of the Just Energy Transition Partnership (JETP). It will strengthen Indonesia’s leadership in the ASEAN region on deploying advanced, safe, and secure nuclear clean energy technologies.
Central to this strategic partnership is the unwavering commitment to supporting Indonesia's adoption of small modular reactor (SMR) technology. The proposed nuclear facility, integrating NuScale's pioneering SMR technology, aims to spearhead Indonesia's clean energy transition with an impressive capacity of 462 MW. An additional injection of USD 1 million in funding for capacity-building initiatives further enhances the partnership established through the U.S. Department of State's Foundational Infrastructure for the Responsible Use of SMR Technology (FIRST) Program. The scope of these efforts encompasses crucial aspects such as workforce development, stakeholder engagement, regulatory framework reinforcement, and licensing support. To realize the monumental transformation ahead, PT. Indonesia Power, a subsidiary of PT PLN Indonesia, an Indonesian state-owned enterprise that is the largest utility company in Indonesia, has selected NuScale Power in partnership with a subsidiary of Texas-based Fluor Corporation and Japan's JGC Corporation.
This partnership promises transformative technological advancements, revolutionizing the industry with cutting-edge technology, expertise, and experience. This collaboration enables knowledge transfer, comprehensive training, and access to state-of-the-art nuclear technology, enhancing Indonesia's ability to generate nuclear energy. Furthermore, Indonesia has established an ambitious goal of reaching 587 GW of clean energy generation by 2060. This partnership aligns with the Indonesian government's visionary plan to utilize nuclear energy in 2045, with a target capacity of 35 GW by 2060. With a focus on stringent safety protocols, this partnership ensures the secure and reliable operation of Indonesia's nuclear facilities.
In summary, this collaboration not only elevates Indonesia's standing in the global nuclear community but also embodies its steadfast dedication to responsible nuclear development. It fosters trust, nurtures cooperation, cultivates impactful partnerships, promotes research collaborations, and grants unparalleled access to the extensive global nuclear network.
