Indonesia's First Experimental Nuclear Reactor Held Up by Budgeting Issues

Indonesia's First Experimental Nuclear Reactor Held Up by Budgeting Issues

The construction of Indonesia's first experimental nuclear power reactor has
been delayed over budgeting issues, including an estimation of the
approximate cost and a financing plan.

The noncommercial nuclear reactor - which will use high-temperature
gas-cooled reactor technology and have a capacity of 10 megawatts - will be
built inside the Center for Science and Technology Research (Puspitek)
complex at Serpong in South Tangerang, Banten.

National Nuclear Energy Agency (Batan) head Djarot Wisnubroto said the
budget is still being discussed to more accurately estimate the cost.

The first budget draft was returned by the National Development Planning
Agency (Bappenas) - the body that has the authority to examine mid-term
national development projects - as it required more detail on the cost
estimation and financing plan.

"Bappenas wants more detail to decide whether the project will be funded
from the state budget or by soft loans from other countries. If we use soft
loans, we need to propose a blue book to those countries that might be
interested," Djarot said on the sidelines of a media workshop at the Russian
Center of Science and Culture in Jakarta on Tuesday (11/10).

He expressed hope that the final budget draft will be completed by the end
of this year, as several companies have shown an interest in funding the
project, including the Russian nuclear corporation Rosatom and its Chinese
competitor.

Djarot said the conceptual design of the nuclear reactor has been prepared
with between Rp 1.7 trillion and Rp 2 trillion ($130 million-$150 million)
in funding.

South Tangerang Environment Agency head Rahmat Salam Arifin Hasan said most
residents of Serpong have agreed on the establishment of the nuclear reactor
in the area, after the local administration prioritized efforts to
disseminate information and knowledge on renewable energy.

However, Batan said it has not yet complied with all the requirements to be
allowed to proceed with construction of the reactor. He added that it would
be resolved this year at the latest.

President Joko "Jokowi" Widodo has taken a stance that nuclear power would
be the last option for the country to meet its energy demands. However, he
has also shown support for Batan to start experimental projects and for the
country to develop the required skills.

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Ref:
http://jakartaglobe.beritasatu.com/news/construction-of-indonesias-first-exp
erimental-nuclear-reactor-still-faces-budgeting-issue/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com