Harnessing Nuclear Energy as a Component of Indonesia’s
New and Renewable Energy Strategy

The transformation toward renewable energy utilization in Indonesia has yet to be implemented optimally. As of now, the total installed power generation capacity in the country stands at approximately 101 gigawatts (GW), with New and Renewable Energy (NRE) contributing only 15% of the overall capacity. Although the use of NRE has increased from 9.43 GW (around 12.5%) in 2017, the growth remains modest. The government, through the Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) for the 2025–2034 period, aims to accelerate the transition to renewable energy. The RUPTL outlines a target of an additional 69.5 GW in power generation capacity by 2034, with 76% of this increase expected to come from renewable energy sources.

This policy opens up investment opportunities for private enterprises in the power generation sector. Indonesia's power sector presents an estimated investment potential of IDR 2,133.7 trillion, with IDR 1,566.1 trillion—or approximately 73%—allocated to Independent Power Producers (IPPs). By 2023, there were 387 privately-owned power plants in Indonesia with a total installed capacity of 26.6 GW. Of the investment allocated to IPPs, IDR 1,341.8 trillion is intended for renewable power plants, while IDR 224.3 trillion is allocated for non-renewable ones. PT PLN is expected to cover the remaining investment requirement, amounting to IDR 567.6 trillion.

Allocation of Energy Source for Power Plant Development

Indonesia, which has long relied on fossil-fuel-based electricity since the 20th century, is planning to develop Nuclear Power Plants (NPPs) with a projected capacity of up to 3 GW by 2035. Bahlil Lahadalia, the Minister of Energy and Mineral Resources (ESDM), stated that the first NPP is expected to commence operations in either 2030 or 2032. Research and development in nuclear energy in Indonesia has begun since 1958 with the establishment of the National Nuclear Energy Agency (BATAN). However, for decades, the country was considered unprepared to develop infrastructure suitable for its geological conditions.

In developing nuclear energy, Indonesia refers to the guidelines set by the International Atomic Energy Agency (IAEA) concerning nuclear power. The IAEA outlines 19 infrastructure readiness requirements, including nuclear safety, emergency preparedness, the nuclear fuel cycle, and radioactive waste management. Based on the IAEA's assessment in 2009, Indonesia had met 16 of the 19 requirements. Currently, the country has completed Phase 1—initial consideration—and is entering Phase 2, which involves more advanced implementation of the nuclear program.

Site surveys and feasibility studies in accordance with national regulations have been conducted by BATAN, which considered various aspects such as seismic activity, peak ground acceleration (PGA), volcanic hazards, and surface faults. Among the 28 potential sites identified during the pre-survey stage, viable NPP locations are concentrated in Sumatra and Kalimantan. Melawi Regency in West Kalimantan has been identified as holding approximately 24,112 tons of uranium reserves, which could potentially serve as a primary fuel source for NPPs.

Nuclear energy is regarded as a strategic solution for reducing dependence on fossil fuel imports. For instance, South Korea successfully reduced its coal and oil imports by around 20% in the first quarter of 2025 due to its increased use of nuclear power. Nuclear energy also significantly reduces greenhouse gas emissions, as its carbon footprint is as low as wind power and only one-third that of solar energy. Furthermore, integrating NPPs into the national energy mix can enhance energy security and stabilize energy prices.

On the other hand, there remain a number of concerns among academics and the public. A key issue is the preparedness of human resources to safely operate nuclear reactors, especially in light of the radioactive contamination incident in Batan Indah Residential Area, South Tangerang, in January 2020. The incident, caused by the negligence of a BATAN employee in handling Cesium-137, raised public alarm. Additionally, NPP development requires significant upfront investment—estimated to be around 45% more expensive than coal-fired power plants. This has sparked criticism from non-governmental organizations (NGOs) and civil society groups, who argue that NPPs should not be a priority, particularly given the country’s untapped potential in other renewable energy sources such as geothermal, solar, and wind.

Beyond these issues, Indonesia faces further challenges in preparing for nuclear power development, including the need for disaster-resilient infrastructure design, the establishment of transparent regulatory frameworks, and a neutral political stance regarding countries supplying nuclear technology. At present, the Nuclear Energy Regulatory Agency (BAPETEN) is drafting a new Nuclear Energy Bill to replace Law No. 10 of 1997, which is considered outdated.

Indonesia’s journey toward establishing nuclear power infrastructure still requires careful deliberation and extensive preparation. Currently, an NPP with a planned capacity of 500 MW is undergoing a feasibility study for potential development in West Kalimantan. PLN, in collaboration with the Ministry of Energy and Mineral Resources, is also exploring opportunities for international partnerships in NPP development. Moving forward, the government is expected to cultivate the country's nuclear potential by adhering to relevant standards and regulations while maintaining the trust of the public, academic community, and civil society organizations to ensure the success of Indonesia's renewable energy transition.

Reference:

• Keputusan Menteri Energi Dan Sumber Daya Mineral Republik Indonesia Nomor: 188.K/Hk.02/Mem.L/2021 Tentang Pengesahan Rencana Usaha Penyediaan Tenaga Listrik PT Perusahaan Listrik Negara (Persero) Tahun 2021 Sampai Dengan Tahun 2030

• Materi Konferensi Pers RUPTL 2025-2034 Kementerian ESDM (Update 26 Mei 2025)

• Tempo.id. Rencana Usaha Penyediaan Tenaga Listrik 2025-2034 Dinilai Membingungkan Investor. Diakses pada 02 Juni 2025, dari https://www.tempo.co/ekonomi/rencana-usaha-penyediaan-tenaga-listrik-2025-2034-dinilai-membingungkan-investor-1563446

• goodstats.id. Indonesia Masih Oversupply Listrik, PLTU Produksi Terbanyak. Diakses pada 02 Juni 2025, dari https://goodstats.id/article/indonesia-masih-oversupply-listrik-pltu-produksi-terbanyak-lvtpX

• renewableenergy.id. Kapasitas Pembangkit Listrik EBT Capai 13.155 MW Pada 2023. Diakses pada 02 Juni 2025, dari https://renewableenergy.id/data-energi-terbarukan/

• reuters.com. Indonesia Plans New Nuclear Power Plants with 4.3 GW Capacity in Bid for Cleaner Energy. Diakses pada 09 Juli 2025 dari https://www.reuters.com/business/energy/indonesia-plans-new-nuclear-power-plants-with-43-gw-capacity-bid-cleaner-energy-2025-01-31

• Nugroho, H. (2025). Analisis Kesiapan Regulasi dan Kelembagaan Pembangunan PLTN di Indonesia dalam Rencana Pembangunan Jangka Panjang Nasional 2025-2045. Bappenas Working Papers, 8(1), 111 - 137. https://doi.org/10.47266/bwp.v8i1.398