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Cablegate: Indonesia Seeks to Develop Nuclear Power but Few

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


NNNN


End Cable Text

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