Page 4 - AsiaElec Week 12 2023

AsiaElec COMMENTARY AsiaElec

Indonesia agrees deal with US to

develop nuclear power

South East Asia’s most populous nation appears to finally be on track to fixing its
overwhelming dependency on coal as well as its emissions woes

INDONESIA
WHAT: Jakarta
finally making moves to
install nuclear power.

WHY: Pressure
to move away from
coal and meet net-zero
numbers is mounting.

WHAT NEXT:
Costing and practicality
checks to determine
location of US-backed
SMR. INDONESIA has taken its first significant steps reported as signed during the recently con-
towards establishing a domestic nuclear power cluded Indo-Pacific Business Dialogue on the At least two
programme, not seen until now. island of Bali in the east of the country, point
These steps were taken after Jakarta this week towards the bulk of the financial and technical think-tanks have
confirmed an agreement at the US Embassy in support coming from the US. been reported
the Indonesian capital, putting in place a deal
whereby US know-how would help to deploy From the other side in the past as
a number of small modular reactors (SMRs) In exchange, it is believed that Indonesia as the
around the Southeast Asian nation. region’s most populous nation and leading econ- stating the
Moves in the direction of nuclear power omy will help promote the previously agreed
have long been pondered in Jakarta, according Just Energy Transition Partnership (JETP). $20bn allocated
to regional energy analysts, but being largely The Indonesian version of the JETP was to this end is
dependent on coal, and as the biggest exporter agreed in November of 2022, on the back of
in the world of the fossil fuel, little motivation a $20bn deal to help decarbonise the nation’s insufficient.
has existed until recently to shift away from the economy.
country’s essentially unlimited fuel source. At no point during the JETP being put
With moves in the last few years towards in place was nuclear power given serious
reducing carbon emissions and the establish- consideration.
ment of net-zero goals, however, the goalposts Furthermore, in contrast to the current deal
have shifted significantly. on SMRs, the JETP was a wider deal between
It was a modern reality directly addressed by Jakarta, G7 nations and others, with the focal
US officials straight after the memorandum of point being an onus on Indonesia pushing for
agreement (MoA) was signed. net-zero by 2050.
“This project will advance climate action Potential hurdles do exist, though.
and clean energy access throughout a critical At least two think-tanks have been reported
part of the world and has the potential – as part in the past as stating the $20bn allocated to this
of follow-on projects – to create thousands of end is insufficient, which may in part explain
jobs, pave the way for additional SMR projects the MoA and subsequent move towards imple-
in Indonesia and the Indo-Pacific region, and menting limited nuclear technology.
uphold the highest standards for nuclear safety, Evident on the US side is a desire for Indo-
security and non-proliferation,” an unnamed nesia to increase its regional influence while
official at the US Embassy said. demonstrating a move towards replacing coal-
Details related to the MoA, which was itself fired energy with nuclear power; all the time

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