Indonesia and Japan Sign Five-Year Nuclear Power Development Agreement
Indonesia, Japan Ink Nuclear Power Deal
Jakarta. Indonesia and Japan have just signed a five-year nuclear power development deal, putting the coal-reliant Jakarta a step closer to using this new energy source.
This memorandum of cooperation was one of Energy Minister Bahlil Lahadalia’s “souvenirs” from his trip to Tokyo. A press statement by the Indonesian wrote that the partnership would laser in on nuclear technology development and use, especially one that embraces “high safety standards”. Jakarta is expected to tap into Japan’s experience and technology to develop low-carbon energy solutions.
Bahlil admitted to having “very much welcomed” the partnership. Japan’s trade tsar Ryosei Akazawa highlighted the importance of building energy security, while alluding to the fact that the Israel-Iran war has fueled worldwide supply disruptions.
“Amidst today’s global crises, it is important for us to beef up collaboration to maintain energy security,” Akazawa said.
The agreement — inked by Bahlil and Akazawa — promotes Japanese firms’ involvement in Indonesia’s nuclear ambitions. Tokyo calls for a “competitive and transparent” technology selection process. The 10-paragraph document opens the door for other potential deployment sites besides West Kalimantan. It also touches on the financing aspect via the use of export credit agencies, such as the Japan Bank for International Cooperation and Nippon Export and Investment Insurance (NEXI).
“[This is] subject to the completion of the necessary due diligence processes, and in line with project progress,” the document reads, referring to the export credits.
The agreement, however, does not create legally binding obligations. Both sides can extend the cooperation for another five years.
Japan’s participation in the Indonesian nuclear program today mainly revolves around a West Kalimantan project. Japanese engineering firm JGC Corporation is helping the Oregon-based NuScale Power to develop a small modular reactor in the said province. Indonesia wants to generate its first 500 megawatts of nuclear power by 2033. A small modular reactor generally produces a third of what traditional nuclear facilities do.
Nuclear power makes up around 40% of Japan’s domestic energy production as of 2024. This is the largest share in the country’s supply, according to the International Energy Agency.
As Indonesia’s nuclear ambitions continue to catch foreign partners’ eyes, any major decisions still hinge on the establishment of a domestic watchdog. This Nuclear Energy Program Implementation Organization (NEPIO) — to be helmed by President Prabowo Subianto — will oversee the planning and development of the reactors. The body now awaits a presidential regulation before it can actually take shape.
“We [Indonesia] are still waiting for the NEPIO. … We are open to all technologies, but we have not made any decision yet,” Bahlil’s aide Senda Hurmuzan Kanam told a conference not long ago.
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