JAKARTA – Hashim Djojohadikusumo, Special Presidential Envoy for Energy and Environment and younger brother of President Prabowo Subianto, has announced Indonesia's plan to significantly scale up its use of renewable energy by 2040. The plan includes the development of nuclear power plants with a total capacity of up to 10 gigawatts (GW).

Contracts for the development of these nuclear facilities are expected to begin being awarded within the next five years, with construction expected to take considerable time.

Hashim stated that Indonesia, one of the world’s largest emitters of greenhouse gases, aims to achieve carbon neutrality before 2050.

“Most contracts will be awarded within the next five years, particularly for nuclear, due to the long lead time required for construction,” Hashim told Reuters in an interview in New York on Thursday (1/5).

By 2040, Indonesia is targeting an additional 103 GW in electricity capacity, comprising 75 GW from renewable sources such as solar, wind, geothermal, and biomass, 10 GW from nuclear energy, and 18 GW from gas.

At present, Indonesia’s installed power capacity stands at around 90 GW, more than half of which is coal-based. Renewables contribute less than 15 GW, and the country has yet to build any nuclear power plants.

Hashim also revealed that several international nuclear energy companies have shown interest in Indonesia’s nuclear plans, including Rosatom (Russia), China National Nuclear Corporation, Rolls-Royce (UK), EDF (France), and NuScale Power Corporation (US), which specialises in small modular reactors.

“I think it’s very likely that they will co-invest alongside institutions such as Danantara,” Hashim added.

Although no site has been selected for the nuclear plants, Hashim mentioned that western Indonesia would be suitable for a single 1 GW reactor, while floating small modular reactors with capacity up to 700 megawatts (MW) would suit eastern regions.

Despite the government’s commitment to energy transition, Hashim stressed that the approach will remain balanced, given President Prabowo’s goal of increasing Indonesia’s economic growth to 8%, up from around 5% in recent years.

“The government doesn’t want to commit economic suicide. There will be no phase-out [of fossil fuels], but there will be a phase-down,” he said.

Hashim also disclosed that Indonesia is planning an agreement with the Asian Development Bank (ADB) to accelerate the retirement of the 660 MW Cirebon-1 coal-fired power plant in West Java.

This deal is backed by the USD 20 billion Just Energy Transition Partnership (JETP), which is expected to be finalised in the coming months.

However, the process is facing financial and legal risks, exacerbated by new uncertainty following the US government’s withdrawal from the JETP partnership. (DK/ZH)