A deputy minister of the Indonesian government said on Friday that Indonesia has been in discussions with the United States about developing nuclear power plants.
Vivi Yulaswati is a deputy minister in the Ministry of National Development Planning. She said that Southeast Asia’s largest economy will be looking to operate nuclear power plants by 2036, in order to reduce its dependency on fossil fuels.
In a video-interview, she stated that the program is open to small modular reactors as well as conventional nuclear technology.
Nuclear power plants in Indonesia have become a hot topic due to the country’s proneness to earthquakes. Yulaswati replied that it was still too early to place orders.
“We need to ask the President for his blessing, and we must also talk to international partners.” “I think it’s a very long road ahead,” she said.
Data from the energy think tank Ember reveals that thirty countries, including nine in Asia, rely on nuclear power to generate electricity.
Indonesia, with a population of more than 275 millions, is the largest coal-consuming country in Southeast Asia. Over half of the country’s current power generation capacity is coal-based, and other clean energy sources such as hydropower make up less than 15%.
However, the country plans to offer investors an opportunity to build 75 gigawatts of renewable energy over the next fifteen years.
However, funding is still a problem. Indonesia was promised $20bn as part of G7’s Just Energy Transition Partnership, which was announced in 2022. However, very little money has actually been distributed and this slow progress has hampered Indonesia’s efforts to reduce emissions.
Yulaswati stated that JETP had approved grants worth $217.8 millions for 33 decarbonisation project in Indonesia, including one which would increase the number electric vehicles on Bali. She said that six more projects, worth $78.4 millions, are currently being discussed.
She added that loans of up to $6 billion had been approved, mostly to upgrade the grid system and to develop the renewable energy industry.
Yulaswati stated that the interest rates on the loans are still being finalised. The rates on loans has been a controversial topic. Indonesian officials have blamed Western nations for failing to provide concessional funding through JETP.
She said that the JETP project has yet to be implemented. Funding will begin next year, when Indonesia’s new 5-year economic plan cycle begins. (Reporting and editing by Edwina G. Gibbs; Sudarshan V. Varadhan)
(source: Reuters)
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