The oil and gas heartland of Indonesia is set to undergo an energy revolution. The country plans to roll out 10 gigawatts (GW) of new nuclear capacity by 2040. This nine-year plan is meant to quadruple the country’s current power capacity. The plan for the next two decades is to attain 193 GW. Today, Indonesia’s power capacity is 90 GW, with renewable energy making up less than 15 GW.
Relatedly, in February 2025 Indonesia launched its plan for constructing the first of three batches of nuclear power plants, starting at 4.3 GW capacity. The country recently announced plans to reach carbon neutrality by no later than 2050, a testament to the country’s commitment to address greenhouse gas emissions. Indonesia has been one of the top ten largest emitters of greenhouse gases globally. Yet it is coming under increasing international and domestic pressure to cut back on its reliance on coal, which fuels more than half of the country’s energy requirements.
Indonesia’s energy strategy includes a substantial increase in renewable energy sources, targeting an additional 103 GW of capacity by 2040. Of this total, 75 GW will come from solar, wind, geothermal and biomass tech. At the same time, gas will produce 18 GW more than coal in the energy mix. The nuclear energy sector should be central in this transition.
International interest in Indonesia’s nuclear ambitions has grown, with several companies, including Rosatom, China National Nuclear Corporation, Rolls Royce, EDF, and NuScale Power, expressing their intent to invest in the country’s nuclear projects. The exact locations for these nuclear plants remain undecided due to concerns regarding Indonesia’s geological position within the Pacific’s volcanic Ring of Fire.
Hashim Djojohadikusumo, Minister in charge of the Indonesian government’s economy, has stressed that many new energy contracts will be signed in the next five years. He noted in particular that ones associated with nuclear power have much longer lead times.
“Many of the contracts will be … in the next five years … especially the nuclear (contracts) because of the long lead times.” – Hashim Djojohadikusumo
He called attention to the co-investment opportunities that exist within these projects.
“I think it’s conceivable that they will co-invest with an institution like Danantara.” – Hashim Djojohadikusumo