R 191106Z DEC 08
FM AMEMBASSY JAKARTA
TO SECSTATE WASHDC 1032
INFO DEPT OF ENERGY WASHINGTON DC
DEPT OF COMMERCE WASHINGTON DC

UNCLAS JAKARTA 002302 
 
 
STATE FOR MARC HUMPHREY 
COMMERCE FOR SARAH LOPP 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY BEXP BTIO ID
SUBJECT: INDONESIA SEEKS TO DEVELOP NUCLEAR POWER BUT FEW 
IMMEDIATE COMMERCIAL OPPORTUNITIES 
 
REF: STATE 127423 
 
¶1. Indonesia has long-term plans to develop a nuclear power 
plant and currently operates three experimental reactors. 
The country is involved in creating the legal, regulatory, 
and scientific institutional capacity to operate a nuclear 
power plant, often in cooperation with the U.S. government. 
Indonesia,s senior leadership has not/not made the final 
decision regarding going forward with a nuclear power plant. 
There will likely be opportunities for foreign 
nuclear-related construction and services companies once 
Indonesian officials decide to develop nuclear power. 
 
Overview of Civil Nuclear Power Program 
--------------------------------------- 
 
¶2. Indonesia has plans to develop at least one nuclear power 
plant, and existing plans, drawn up more than a decade ago, 
call for completion by 2016.  Before anything can begin, the 
President of Indonesia must make the decision to go ahead 
with these plans, although he is unlikely to do so before the 
Presidential elections in 2009.  This delay puts the 2016 
goal in doubt.  Indonesia's official long-term energy policy 
assumes the existence of a nuclear power plant by 2025. 
 
¶3. There are several motivations for nuclear power - energy 
security, rapidly growing electricity demand, and current 
power constraints which lead to rolling blackouts.  However, 
the government has not yet made the decision as to whether a 
nuclear power plant would be privately owned, 
government-owned, or owned by PLN (the government-owned power 
company, which has a monopoly on providing electricity). 
 
¶4. Indonesia is also in the process of updating liability 
rules for the nuclear power sector, but has not yet finalized 
these rules. 
 
¶5. Indonesia has three nuclear research reactors, the largest 
of which is a 30 MW reactor complex in Serpong, near Jakarta. 
 The three reactors have domestic scientific and technical 
staff running them. 
 
Official Structure 
------------------ 
 
¶6. Two Indonesian government agencies have primary 
responsibility for nuclear issues.  Both have frequent 
exchanges, including training programs, with the U.S. 
Department of Energy, the Nuclear Regulatory Commission, and 
the Department of State's Bureau of International Security 
and Nonproliferation. 
 
BAPETEN: The Nuclear Energy Regulatory Agency is the nuclear 
regulator.  It is still in the process of writing the 
regulations necessary for a nuclear power industry. 
 
     Dr. Ir. As Natio Lasman 
     Chairman, Nuclear Regulatory Agency 
     Jl. Gajah Mada No 8 
     Jakarta 10120 
     Indonesia 
     Tel ( 62-21) 6385-6203 
     Fax ( 62-21) 6385-5759 
     Email: asnatio@bapeten.go.id 
 
BATAN: The National Nuclear Energy Agency operates the 
existing reactors and will have a role in the operation of a 
nuclear power plant. 
 
     Hudi Hastowo 
     Chairman, National Nuclear Energy Agency 
     Jl. Kuningan Barat, Mapang Prapatan 
     Jakarta 12710 
     Indonesia 
     Tel ( 62-21) 520-4246 
     Fax ( 62-21) 525-1110 
     Email: hastowo@batan.go.id 
 
Opportunities for U.S. Industry 
------------------------------- 
 
¶7. Although there are several power construction companies in 
Indonesia, it is unlikely that there exists sufficient 
expertise to independently construct all parts of a nuclear 
power plant.  However, plans are still notional.  The 
Indonesian government has not made decisions regarding the 
ownership structure of a nuclear power plant (public vs. 
private).  There are no firm tendering plans in the works. 
 
¶8. Indonesia has a number of nuclear agreements with the 
 
 
United States, including an active 123 Agreement. 
 
¶9. The primary commercial opportunity in the Indonesian 
nuclear sector is the supply of fuel.  Indonesia has in the 
past purchased fuel from both the United States and France. 
HUME 
 
 
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