Indonesia pushes nuclear power option amid questions about cost, safety, renewable sources

Indonesia has said it aims to start producing nuclear power by 2032 to meet electricity needs and attain environmental goals although serious concerns remain about the cost, safety, and risk of setting up an atomic power plant.

According to a senior official of American firm ThorCon’s local unit, the company will be building the country’s first nuclear power plant on Kelasa island in the Bangka Belitung archipelagic province off the southeastern coast of Sumatra.

The thorium-fueled power plant would “make Indonesia the FIRST country in ASEAN to go nuclear officially,” Bob Effendi, director of ThorCon PT Indonesia, said on social media.

“[T]he first nuclear power plant is scheduled to begin operation by 2032 in Bangka-Belitung Province with 500MW capacity – a key area where ThorCon is leading the way with their innovative approach to molten salt reactors,” Effendi said on his Facebook account last month.

Meanwhile, National Nuclear Energy Regulatory Agency (BAPETEN) spokesman Indra Gunawan said the location for the first nuclear power plant was “still in the site study phase.” There had been no request to the agency for a permit to build a nuclear power plant on Kelasa Island, he added.

But Effendi noted more than once on Facebook that the plant had been greenlighted.

“Discover how this groundbreaking 13 trillion rupiah project is transforming Indonesia’s energy landscape and positioning our nation at the forefront of nuclear innovation in Asia,” he wrote, although he told local news site Kompas.com last month the plant would cost 17 trillion rupiah (U.S. $1.05 billion).

According to a 2020 statement on PT ThorCon’s website, the company plans to fully foot the bill for building the first phase.

The expense includes the cost of importing a thorium-fueled reactor prototype from South Korea by 2028 as well as research, technology transfer and other infrastructure costs, he said.

“There must be cheap, clean and reliable energy, to achieve 8% economic growth,” he added, referring to President Prabowo Subianto’s GDP goal.

As for achieving net-zero emissions, Prabowo said at a G20 forum in November that he was optimistic the country would get there by 2050 – 10 years ahead of schedule.

Net zero is considered achieved when CO2 emissions released by human activities are balanced by removing carbon from the atmosphere, according to the World Resources Institute, a U.S-based think-tank.

At a parliamentary hearing last month, Indonesian Energy Minister Bahlil Lahadalia said that “we must embrace” nuclear energy.

“At DEN [the Indonesia National Energy Council], this has been discussed seriously. The target is that by 2032, nuclear energy will be operational,” he added.

Coal-fired power plants currently make up about 67% of Indonesia’s electricity generation, according to the energy ministry.

Local media reported that Indonesia’s target was to add 100GW of power in the next 15 years, with three-quarters of it from renewable sources and 5% from nuclear power plants.

Were PT ThorCon’s nuclear power plant to be set up in Bangka Belitung, it could benefit from the prevalence of thorium that is often found with tin in that region.

Thorium is touted as a safer and more efficient nuclear fuel compared to uranium.

Proponents argue that nuclear energy offers a reliable, low-carbon alternative to the country’s reliance on coal, while critics contend that Indonesia’s abundant renewable resources render the nuclear project unnecessary.

“Nuclear energy can generate the same amount of power as thousands of wind turbines or solar panels, but in a smaller area,” said Djarot Sulistio Wisnubroto, former head of Indonesia’s National Nuclear Energy Agency (BATAN). 

“However, its development requires significant initial investment, lengthy construction time, and consistent policy support,” he told BenarNews.

‘Political showcase’

While nuclear power advocates cite its reliability and low carbon emissions, detractors raise concerns about safety, waste management, and cost. 

“Nuclear power is a viable option, but constructing a nuclear power plant requires seven to 12 years, with considerable risk of cost overruns,” Putra Adhiguna, energy analyst and director of the Energy Shift Institute, told BenarNews.

“It’s crucial not to turn this into a political showcase that leads to hasty decisions. Nuclear plants come with high liabilities and significant risks.”

Leonard Simanjuntak, head of Greenpeace Indonesia, pointed out that while nuclear energy does not emit greenhouse gases during operation, the processes involved in mining, transporting, and managing radioactive waste contribute to its environmental footprint. 

 “Nuclear energy has no place in a safe, clean, and sustainable future. We must move away from false solutions,” Leonard told BenarNews.  

“Even if nuclear power were to double worldwide by 2050, it would only reduce global emissions by around 4%.” 

Currently, nuclear energy comprises 9% of the world’s electricity from about 440 power reactors, according to the World Nuclear Association. 

Indonesia’s location on the Pacific Ring of Fire, a seismically active region, has fueled apprehension about the potential risks of nuclear disasters. 

For instance, 20 years ago, an earthquake of magnitude 9.1 struck off the coast of Indonesia’s Aceh province, triggering a tsunami that killed about 230,000 people in Indonesia and 13 other Indian Ocean countries.

Indra, the BAPETEN spokesperson, said the government was prioritizing areas with low seismic activity, such as Bangka Belitung and West Kalimantan. 

“Engineering solutions can address risks in seismic zones, but it’s more cost-effective and safer to build in less risky areas,” Indra said, adding that Japan had maintained nuclear power infrastructure despite seismic activity.

But that did not relieve the safety concerns of Dwi Sawung, an infrastructure campaigner with the environmental group Walhi, who called attention to Indonesia’s country’s inadequate safety standards.

“In Indonesia, issues of discipline, independent oversight, and enforcement of workplace safety regulations remain poor,” he told BenarNews.

Other critics say that Indonesia’s vast renewable sources of energy aren’t being utilized.

Indonesia has more than 3,600 GW of renewable energy potential, state news agency Antara reported in 2022, citing the energy minister from back then.

And yet, renewable energy accounted for just 14% of the national energy mix last year, falling short of the 19.5% target, according to the Ministry of Energy and Mineral Resources. 

This is the case even though renewable sources like hydropower, wind and solar are among the cheapest to produce, ranging from 2 cents to 8 cents per kilowatt-hour, experts said.

'Why do industrial nations use it?'

Nuclear projects do have high upfront costs, acknowledged Agus Puji Prasetyono, a member of the National Energy Council.

However, their long-term benefits often outweigh the initial investments, he told BenarNews.

“With newer technologies like small modular reactors, the costs have decreased significantly, averaging around 7 to 8 cents per kilowatt-hour,” Agus told BenarNews. 

Agus said that private investors in Indonesia are already showing an interest in financing nuclear projects. 

“Many are waiting for clear regulations and a stable political stance from the government. Once those are in place, they are ready to collaborate with local energy companies to bring nuclear energy on board,” Agus explained. 

Experts say, though, that clear regulations are in place but rules are needed to determine they are implemented.

Towards this end, the energy ministry is aiming to finalize a presidential regulation to establish a Nuclear Energy Program Implementation Organization (NEPIO) in early 2025.

Natio Lasman, a former chief of BAPETEN, told BenarNews that Indonesia was behind other major nations such as Brazil, China, India, and the United States in using nuclear energy.

“If nuclear power is so detrimental, why do industrial nations use it?” he said. 

“And if it is beneficial, why haven’t we embraced it yet?”