
Indonesia seeks to grow energy, cut emissions
Indonesia is hoping going nuclear can help it meet soaring energy demand while taming emissions, but faces serious challenges to its goal of a first small modular reactor by 2032. Its first experiment with nuclear energy dates to February 1965, when then-president Sukarno inaugurated a test reactor. Sixty years later, Southeast Asia's largest economy has three research reactors but no nuclear power plants for electricity.
Abundant reserves of polluting coal have so far met the enormous archipelago's energy needs. But 'nuclear will be necessary to constrain the rise of and eventually reduce emissions', said Philip Andrews-Speed, a senior research fellow at the Oxford Institute for Energy Studies.
President Prabowo Subianto has promised to ensure energy security while meeting a pledge to eliminate coal-powered electricity generation within 15 years.
Coal accounts for around two-thirds of electricity generation in Indonesia, which targets net-zero by 2050. The government wants 40-54GW of the 400GW it projects will be generated nationwide by 2060 to come from nuclear.
It hopes to kickstart capacity with a reactor on Borneo 'by 2030 or 2032', according to Energy Minister Bahlil Lahadalia. It will be a small modular reactor, which has a lower capacity than traditional reactors but is easier to assemble and transport.
The total number of plants planned has not been detailed, but the government has begun scouting locations - a challenge for a country located on the seismically active 'Ring of Fire'.
'Currently, 29 potential locations have been identified for the construction of nuclear power plants,' Dadan Kusdiana, acting secretary general of the National Energy Council (DEN) told AFP. All are outside the country's biggest island of Java, in line with government goals to develop the archipelago's centre and east. The sites would also put facilities near energy-hungry mining sites.
While Japan's quake and tsunami-triggered Fukushima disaster has stalled nuclear progress in some parts of Asia, proponents say nuclear can be done safely in Indonesia. 'North Java, East Sumatra, West Kalimantan and Central Kalimantan are considered as low-risk zones,' said Andang Widi Harto, a nuclear engineering researcher at Yogyakarta University.
'These low seismic risk regions also coincide with low volcanic risk regions,' he added.
Countries from Vietnam to Belgium are also growing or retaining nuclear capacity as they struggle to meet net-zero goals to combat climate change. While Indonesia may not be alone in the nuclear pivot, it has little domestic expertise to draw on.
It will look abroad for help, said Kusdiana, citing 'serious interest' from providers including Russia's Rosatom, China's CNNC and Candu Canada.
The Indonesian subsidiary of US company ThorCon is already seeking a license for an experimental 'molten-salt reactor'.
It wants to use shipyards to build small reactors that will be towed to coastal or offshore locations and 'ballasted' to the seabed. Kusdiana said DEN has also visited France's EDF SA to explore possible cooperation. French President Emmanuel Macron is due in Indonesia this week as part of a Southeast Asia tour.
EDF said there were currently 'no discussions underway on nuclear with Indonesia,' though its CEO Bernard Fontana will be part of Macron's delegation. A second French firm, Orano, also said it had not discussed collaboration with Indonesia.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Qatar Tribune
a day ago
- Qatar Tribune
Germany leaves Moscow, Kiev to decide summit venue as Budapest mooted
Jakarta: German Foreign Minister Johann Wadephul said on Wednesday it was up to Moscow and Kiev to decide where Russian President Vladimir Putin and Ukraine's Volodymyr Zelensky might meet as speculation swirled that Budapest will be the venue. 'The discussions, including the procedure, are being shaped by Russia and Ukraine, not by the German foreign minister from Jakarta,' he told journalists while in the Indonesian capital. US President Donald Trump, who last week met Putin in Alaska and then hosted Zelensky and European leaders in Washington on Monday, is also expected to attend any summit between the pair. The US Secret Service, responsible for Trump's security, is already making preparations for a trip to Budapest, according to the website Politico. Switzerland had previously said it was prepared to host the possible talks on ending the war in Ukraine despite the arrest warrant issued against Putin by the International Criminal Court (ICC). (DPA)


Qatar Tribune
3 days ago
- Qatar Tribune
As Trump builds tariff walls, China and Asean are building bridges
Agencies Amid escalating tensions between the United States and China and lingering trade tensions, China and Asean have gone full steam ahead on upgrading their landmark free trade pact. China and the Association of Southeast Asian Nations – two key players in the Global Southaccount for a quarter of the world's population and a fifth of global gross domestic product, contributing to over 30 per cent of global economic growth. In July, Chinese Foreign Minister Wang Yi announced that both sides would submit the '3.0 version' of the China-Asean Free Trade Agreement for approval in October. This signals a push to future-proof Asia's trade flows amid renewed US protectionism and intensifying global competition. With negotiations over, the pact is expected to be signed by the end of 2025. The initial version of the free trade pact was Asean's first with an external partner. The latest upgrade is set to expand cooperation across nine areas, such as digital and green economies. Since the agreement's inception in 2010, Asean's trade with China has almost tripled – from US$235.5 billion in 2010 to US$696.7 billion in 2023. China has been the bloc's largest trading partner for 16 consecutive years. Asean has also become China's top trading partner for the past five years. Last year, bilateral trade almost reached US$1 trillion. In the first four months of 2025, trade reached US$330.86 billion, a 9.2 per cent year-on-year jump. Upgrading the pact benefits both sides. It gives Asean countries a chance to deepen regional integration and reinforce supply chains amid rising geopolitical uncertainty. A 2023 HSBC survey found that 92 per cent of Indonesian, 87 per cent of Filipino and 89 per cent of Vietnamese companies expect supply chain growth with China through 2026. For Beijing, Southeast Asia is indispensable. The upgraded deal could help China diversify export markets, secure vital raw materials – such as minerals from Indonesia and Thailand – and encourage manufacturers to offshore production to lower costs and bypass Western restrictions. This consolidates China's position as a stable regional economic partner for Asean while counterbalancing US influence and boosting intra-Asian trade. For the US, the upgraded agreement reveals the limits of its tariff offensive. US tariffs are prompting more countries to boost economic ties with China, which is increasingly seen as a steadier source of investment, capital and financing. Indonesia reportedly secured a tariff cut from 32 to 19 per cent. Cambodia had faced a 36 per cent rate, which was also reduced to 19 per cent. However, US President Donald Trump's tariffs threaten Southeast Asia unevenly, ranging from 10 per cent on Singapore to 40 per cent on war-stricken Myanmar and Laos. A shift in public opinion is also under way. The 2024 ISEAS-Yusof Ishak Institute survey, a barometer of regional elite opinion, found that most respondents would pick China over the US if they had to choose. As Washington steps back from multilateralism, Beijing is positioning itself as the defender of world trade norms, challenging Western dominance. However, major hurdles remain. Asean and China must navigate complex regulations on logistics, warehousing and product certification. This demands major infrastructure investment, harmonised data governance and stronger cybersecurity cooperation, efforts that hinge on institutional trust, coordinated reforms and sustained policy support. Equally pressing is the shifting trade balance. Asean accounted for 15 per cent of China's trade in 2023, up from 10 per cent in 2010, according to McKinsey, while China made up 20 per cent of Asean's trade in 2023, a 12 per cent increase over the same time period. Asean imports from China have surged faster than exports, pushing the bloc's trade deficit above US$190 billion. The updated agreement could deepen these imbalances. The relocation of Chinese manufacturers to Southeast Asia is another concern. Facing US technology restrictions, Chinese firms have shifted production to Asean countries to bypass tariffs and avoid the 'Made in China' label. While some countries like Vietnam and Thailand stand to gain from this, despite recent obstacles, a surge of cheaper Chinese imports could also threaten less competitive local producers and further widen trade long-standing South China Sea disputes continue to fuel unease. Past Chinese restrictions on Filipino banana exports show how maritime disputes can affect trade ties. Beijing's renewed commitment to finalising a code of conduct for the South China Sea with Asean brings optimism. Still, overlapping claims and periodic flare-ups could sour goodwill. Disputes must be carefully managed to avoid eroding trust. Overall, the upgraded trade deal offers opportunities for both China and Asean. If both sides manage risks, the pact will accelerate Southeast Asia's rise and solidify China's place at the centre of it.


Qatar Tribune
5 days ago
- Qatar Tribune
Indonesia president touts economy, social welfare drive
Agencies Indonesian President Prabowo Subianto emphasized an expectation-defying economy, low unemployment rate and slew of ambitious social welfare initiatives as he delivered his first state address to parliament on Friday. The ex-special forces commander took office in October after a campaign to rehabilitate an image tainted by allegations of rights abuses committed during the Suharto dictatorship in the late 1990s. The 73-year-old populist leader has pledged fast, state-driven growth to transform Southeast Asia's largest country into a major global powerhouse. But his hallmark schemes, including a free school meal program to address childhood stunting, have strained state coffers, stoked investor fears and triggered student protests. In his speech, Prabowo defended his social policies and pointed to positive second-quarter economic results after his government set an ambitious goal of eight percent growth. 'Amid political conflict, global economic conflict, (and the US) trade war... Indonesia still managed to grow above five percent,' he told parliament. After US President Donald Trump threatened Indonesia with a heavy tariff rate of 32 percent in April, Prabowo negotiated a lower levy of 19 percent in return for bringing down trade barriers for American goods. Last week, the statistics agency showed Q2 growth had accelerated to 5.12 percent, beating forecasts and up from 4.87 percent the previous quarter. He also pointed to the unemployment rate, which has dropped to its lowest since the Asian financial crisis. On his social welfare agenda, Prabowo shrugged off criticism of the billion-dollar free lunch program for schoolkids and pregnant mothers, touting its reach of 20 million people. 'Our goal... is to be free from poverty, free from hunger, free from suffering,' he said. He faced protests across Indonesia in February for widespread cuts to fund the scheme which has been dogged by reported delays and food poisonings as well as a new sovereign wealth fund.