Navigating Indonesia’s Nuclear Future: Understanding the Regulatory Pathway for Nuclear Power Plant Development
Indonesia’s commitment to clean and sustainable energy is now firmly reflected in its national energy roadmap. Through official documents such as The Electricity Supply Business Plan (Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) 2025–2034, released on May 26, 2025, and the latest National Energy Policy (Kebijakan Energi Nasional, KEN), which took effect on September 15, 2025, the government has set a target of achieving net-zero emissions (NZE) by 2060 by promoting a low-carbon energy mix, including the utilization of nuclear energy as part of a clean and reliable baseload power source.
In the RUPTL 2025–2034, nuclear energy is officially integrated into the future energy portfolio through the development of nuclear power plants (NPPs) with an initial capacity of 500 MW (two small units of 250 MW) in the Sumatra and Kalimantan grids, with a target completion no later than 2034. The planned NPP technology, based on advanced designs such as the Small Modular Reactor (SMR), will be supported by robust and adequate infrastructure and regulations, including the establishment of a Nuclear Energy Program Implementation Organization (NEPIO) as the organization responsible for preparing the development of NPPs in Indonesia.
Previously, the Nuclear Energy Regulatory Agency (Badan Pengawas Tenaga Nuklir, BAPETEN) had officially approved the Site Evaluation Plan (PET) and Site Evaluation Management System Plan (SMET) for nuclear power plants based on advanced molten salt reactor technology in Kelasa Island, Bangka Belitung Islands. This was formalized through the Decision of the Head of BAPETEN No. 00003.556.1.300725, dated July 30, 2025, demonstrating BAPETEN’s strong commitment to accelerating a safe and efficient licensing process for nuclear energy development. This also confirms that Indonesia has made progress in following up on the strategic site assessment for NPP development. Moreover, the site is believed not to be the only one, as according to the National Energy Council (Dewan Energi Nasional, DEN), Indonesia already has 29 potential locations for NPP development.
A firm policy shift is also reflected through the integration of nuclear energy into the National Energy Policy (KEN), derived from Government Regulation (Peraturan Pemerintah, PP) No. 40/2025, signed by President Prabowo Subianto. This policy, which took effect on September 15, 2025, replacing PP No. 79/2014, sets the nuclear energy share at 0.4% by 2032, rising significantly to 12.1% by 2060. Although the proportion is still modest, this capacity will enable Indonesia to strengthen the role of clean energy in meeting national demand by incorporating nuclear energy to complement renewable sources.
In line with the global trend, where major nations are accelerating NPP development to maintain power system reliability while reducing carbon emissions, Indonesia’s step is considered timely. Nuclear energy is positioned not merely as a technical solution but as a symbol of commitment toward energy independence and technological sovereignty. With Indonesia’s ambitious vision to revolutionize its energy policy, how does nuclear power play a crucial role in the country’s future, and what are the licensing procedures required to realize its first NPP?
From Last Resort to Leading Force: Positioning Nuclear as Indonesia’s Core Energy Pillar
Indonesia faces major challenges in balancing economic growth, energy demand, and environmental targets. With a population exceeding 280 million and projected annual electricity consumption growth of 6–7%, dependence on coal must be reduced without compromising supply stability. Renewable sources such as solar and wind, while important, are intermittent and not yet sufficient to guarantee 24-hour power for industry. Therefore, NPPs play a strategic role by providing clean baseload power that operates continuously with near-zero carbon emissions and a capacity factor above 90%, far surpassing other renewables.
Given Indonesia’s archipelagic geography, SMR technology offers far greater advantages than large-scale reactors. SMRs enable energy decentralization, where smaller units can be built across various islands according to local needs, reducing dependence on costly inter-island transmission. This model also offers better investment scalability with lower upfront costs and easier integration into smaller regional grids, enhancing overall national energy resilience.
The innovation of Floating Nuclear Power Plants (FNPPs), where NPPs like SMRs are placed on floating platforms, has also become a logical consideration. For a maritime nation like Indonesia, FNPPs represent a breakthrough that effectively addresses land acquisition challenges and social issues that often hinder large infrastructure projects. Entire plants can be efficiently constructed in shipyards and towed to coastal or remote industrial areas that require stable power, making them a fast, flexible, and land-efficient energy solution. The RITM-200M reactor, designed by Rosatom and currently the only FNPP available on the market, has proven reliable as a power source for Russia’s nuclear icebreaker fleet operating in extreme Arctic environments. For Indonesia, selecting such a proven technology significantly reduces both technological and financial risks, affirming that SMRs and FNPPs are not experimental choices but pragmatic and proven pathways to accelerate the realization of Indonesia’s nuclear energy program.
Streamlining the Path: Inside Indonesia’s Unified Licensing Roadmap for the First NPP
For business actors and investors, understanding the licensing pathway of a strategic infrastructure project such as an NPP is key. The Indonesian government has designed a process that, while rigorous, is fundamentally logical and transparent, ensuring that every aspect, from safety to commercial feasibility, meets the highest standards.
This journey now begins through a centralized digital gateway: the Online Single Submission (OSS) system, where general data, location, capacity, and initial construction plans are first registered. The system intelligently directs the project into a dual-track approach, at the core of Indonesia’s NPP regulatory framework, separating oversight between highly specific nuclear safety aspects and more conventional electricity business aspects. At this stage, companies must register their activities under the Indonesian Standard Classification of Business Fields (Klasifikasi Baku Lapangan Usaha Indonesia, KBLI) codes, specifically KBLI 43294 for nuclear installation and KBLI 35111 for electricity generation.
Before physical foundations are built, developers must first lay the project’s legal and social foundations. Through OSS, they are required to secure a series of basic permits, including Conformity of Space Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang, KKPR) to ensure spatial conformity, Forest Area Use Approval (Persetujuan Penggunaan Kawasan Hutan, PPKH) if the site is within forest areas, and Conformity of Marine Space Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang Laut, KKPRL) if the project is in coastal or offshore zones. Developers must also ensure environmental compliance through the Environmental Approval (often in the form of EIA) as proof that ecological impacts have been analyzed and mitigated. The next stage involves construction permits, including Building Construction Approval (Persetujuan Bangunan Gedung, PBG) and Certificate of Functional Worthiness (Sertifikat Laik Fungsi, SLF), ensuring that building structures and supporting facilities meet safety and functional standards. Once all basic requirements are met, the project is legally born with the issuance of a Business Identification Number (Nomor Induk Berusaha, NIB), the project’s “birth certificate.”
Developers then enter the most critical phase: obtaining construction approval from two regulatory “gatekeepers” that are distinct yet equally vital. On the first path, developers must engage with BAPETEN, whose mandate is absolute, ensuring nuclear safety and security above all else. This process involves a series of in-depth technical assessments integrated into BAPETEN’s online licensing system (BALIS). Every detail, from reactor structural design, materials, and cooling systems to cybersecurity protocols, is thoroughly examined. The outcome of this process is the issuance of the Nuclear Installation Construction License, signifying that the NPP’s design and construction plan meet global nuclear safety standards. During construction, if the project requires the import or use of nuclear materials, developers must also obtain the Permit for the Use of Nuclear Materials (PB-UMKU) via OSS, covering authorization for use, storage, or transportation of radioactive materials during construction or system testing.
Simultaneously, on the commercial side, developers must engage with the Ministry of Energy and Mineral Resources (MEMR), which evaluates the project from the perspective of its role as a national electricity supplier. Their questions are technical-commercial: Is the plant reliable? How will it connect to the national grid? Is the business model sustainable? This process culminates in the issuance of the Electricity Supply Business License for Public Use (IUPTLU), granting the developer the right to operate as an independent power producer (IPP) in Indonesia. The moment when both licenses are secured marks a pivotal milestone known as Financial Close, the long-awaited green light for investors and financial institutions to release billions of dollars in funding required for construction.
Once physical construction is completed, the NPP enters its final proofing stage: the commissioning phase, involving rigorous system testing under the supervision of both BAPETEN and MEMR. BAPETEN issues a Commissioning Approval to ensure all nuclear-related systems are safely tested before finally granting the Operating License for the facility. In parallel, MEMR conducts verification to ensure the plant can reliably and safely deliver electricity to the grid, certified through the Electric Power Competency Certificate (LSKTTK) and Operational Worthiness Certificate (SLO). With all operational licenses from both regulatory pillars secured, the NPP finally reaches the finish line, Commercial Operation Date (COD), marking the end of a lengthy licensing journey and the beginning of decades of clean, reliable power generation for Indonesia’s progress.
Overcoming Barriers, Building Momentum: Strategic Insights to Accelerate Indonesia’s First NPP
With solid policies and licensing procedures already established for nuclear energy development, Indonesia still faces several practical challenges in realizing its first NPP. Although the licensing roadmap is clear, several acceleration steps must be prioritized by the government and stakeholders to achieve the first NPP according to target.
Establishment of an Effective NEPIO: The formation of NEPIO is a crucial requirement of the International Atomic Energy Agency (IAEA). The government has planned this body, and the next step is to ensure NEPIO functions effectively as the orchestrator coordinating all ministries and agencies, accelerating regulatory harmonization, and serving as the central command of the national nuclear program.
Public Education and Social Acceptance: Considering the sensitivity of nuclear issues, transparent and data-based public education campaigns must be intensified. Proactive communication about modern safety standards, waste management, and the economic benefits of NPPs, engaging multilayers of society, is essential to building public trust and support.
Human Resources and Local Supply Chain Development: Indonesia must immediately launch large-scale programs to train thousands of nuclear professionals, including engineers, technicians, and regulators. The government should also map and encourage the involvement of local industries in the global supply chain to maximize the economic impact of NPP development.
Long-Term Financial Readiness: NPP projects require massive upfront investment with long payback periods, necessitating a well-structured financial mechanism. To attract investors, Indonesia must establish a clear nuclear financing framework, potentially through Public-Private Partnership (PPP) or green investment schemes aligned with global sustainable development goals.
Through these measures, Indonesia must also strengthen regional and international collaboration with experienced nuclear nations, reactor vendors, and multilateral organizations such as the IAEA to gain access to best practices, safety culture, and technical guidance that will accelerate national readiness toward safe and sustainable nuclear energy implementation.
Indonesia’s Role as a Regional Catalyst for Clean Energy Development
With Indonesia currently standing at a strategic crossroads in energy transformation, the integration of nuclear energy into national policy and energy roadmaps marks a long-term commitment to clean and stable energy. Investors, technology providers, research institutions, and regulators collectively share the responsibility to translate this vision into tangible infrastructure that is safe, efficient, and sustainable. The selection of proven NPP technologies, supported by a well-prepared skilled workforce, will ensure the project’s long-term success. This initiative will be reinforced at the 10th edition of the Asia Nuclear Business Platform (ANBP) 2025, to be held on December 9–11, 2025, in Jakarta, Indonesia, serving as a vital forum that brings together policymakers, global stakeholders, and industry leaders to shape the next phase of ASEAN’s nuclear trajectory. With the National Energy Council (Dewan Energi Nasional, DEN) as the host, this forum will strengthen Indonesia’s and ASEAN countries’ nuclear energy commitments toward a clear and sustainable realization for the region’s future nuclear energy programs.
