NUSA DUA, BALI – Today at the Indo-Pacific Chamber of Commerce and Industry Business Forum in Bali, the United States and Indonesia announced a strategic partnership to help Indonesia develop its nuclear clean energy program, supporting Indonesia’s interest in deploying small modular reactor (SMR) technology to meet its energy security and climate goals. Coordinating Minister for Economic Affairs Minister Airlangga Hartarto, U.S. Ambassador to Indonesia Sung Y. Kim, U.S. Department of State Principal Deputy Assistant Secretary Ann Ganzer and the U.S. Trade and Development Agency (USTDA) formally announced the Memorandum of Agreement and affiliated grants and contract signing as a deliverable under the Partnership for Global Infrastructure and Investment (PGII). The agreement advances the goals of the Just Energy Transition Partnership (JETP) and will strengthen Indonesia’s leadership in the ASEAN region on the deployment of advanced, safe, and secure nuclear clean energy technologies, working toward the goal of Net Zero Emissions in Indonesia by 2060.
Under this engagement, USTDA has awarded a grant to PLN Indonesia Power (Indonesia Power) to provide assistance to assess the technical and economic viability of the proposed nuclear power plant, to be located in West Kalimantan. It will include a site selection plan, power plant and interconnection system design, preliminary environmental and social impact assessment, risk assessment, cost estimate, and regulatory review.
In addition, cooperation will include $1,000,000 USD in new funding for capacity-building for Indonesia, building on its existing partnership under the U.S. Department of State Foundational Infrastructure for the Responsible Use of SMR Technology (FIRST) Program. This includes support in areas such as workforce development, stakeholder engagement, regulations, and licensing.
“The U.S.-Indonesia economic relationship is thriving, and in Bali this week we are seeing some of the tangible outcomes of our partnership,” said U.S. Ambassador to Indonesia Sung Y. Kim. “Today’s announcement of a strategic partnership to help Indonesia develop its small modular reactor nuclear clean energy program, as a key deliverable under the Partnership for Global Infrastructure and Investment, is an important milestone in Indonesia’s efforts to achieve its climate goals while promoting sustainable economic growth.”
Indonesia Power selected Oregon-based NuScale Power OVS, LLC (NuScale) to carry out the assistance in partnership with a subsidiary of Texas-based Fluor Corporation and Japan’s JGC Corporation. The proposed 462-megawatt facility would utilize NuScale’s SMR technology and advance Indonesia’s clean energy transition.
SMRs provide 24/7 reliable power, complement other clean energy sources, have flexible siting, and use a small land footprint. They incorporate advanced safety features, including designs to withstand extreme weather and seismic-related events, and can be deployed to match the specific needs of a country’s power grid, with the ability to scale up as needed. SMRs can play a critical role in decarbonizing hard-to-abate sectors, including clean hydrogen production, heavy industrial processes, and water desalination to meet decarbonization and energy security goals, air quality standards, and clean water access needs.
This project will advance climate action and clean energy access throughout a critical part of the world and has the potential – as part of follow-on projects – to create thousands of jobs, pave the way for additional SMR projects in Indonesia and the Indo-Pacific region, and uphold the highest standards for nuclear safety, security, and nonproliferation.
PGII offers partners such as Indonesia a positive, sustainable model of infrastructure financing and delivery. President Biden, President Jokowi, and European Commission President Von der Leyen co-hosted a group of G20 leaders in November 2022 during the G20 Leaders’ Summit to deepen engagement under PGII, which aims to mobilize $600 billion for global infrastructure investments by 2027. This Partnership is delivering quality, sustainable infrastructure that makes a difference in people’s lives around the world, strengthens and diversifies our supply chains, and advances our mutual national and economic security through strategic investments.
