05/10/2023

A Mahardika perspective on what first-of-a-kind deployment means for Indonesia's path toward an investable nuclear programme

Nuclear power is entering a new phase

Nuclear energy is re-emerging in a smaller and potentially more flexible form. The International Atomic Energy Agency generally defines small modular reactors as advanced reactors with a power capacity of up to 300 MWe per unit. Greater factory fabrication and repeat deployment are design goals intended to reduce onsite complexity and improve learning across a fleet.

The commercial proposition still requires care. A smaller unit may require less total capital than a conventional large reactor, but that does not automatically mean a lower cost per megawatt. Shorter schedules and repeatable economics are central to the SMR case, yet they have not been demonstrated across a commercially replicated fleet.

For an archipelagic system such as Indonesia, smaller units could offer flexibility where demand is distributed and long-distance transmission is expensive. Their suitability would still depend on local grid size and stability, cooling access, site conditions, security requirements and project economics.

The leading projects are becoming tangible

China's 125 MWe Linglong One, or ACP100, is an advanced land-based commercial SMR that has progressed through construction and pre-operational testing. Earlier schedules targeted operation in 2026, but that milestone should not be treated as achieved until fuel loading, first criticality, grid connection and commercial operation are officially confirmed.

Linglong One also sits within a wider field of operating small reactors. Russia's Akademik Lomonosov is a floating nuclear power plant, while China's HTR-PM is a high-temperature gas-cooled demonstration project. Both are commercially operating, but they belong to different technology and deployment categories and should not be conflated with a new land-based pressurised-water SMR.

In Canada, the BWRX-300 project at Darlington received its construction licence in April 2025, and installation of the reactor-building foundation began in 2026. Ontario Power Generation is targeting connection to the grid by the end of 2030. In the United States, the Nuclear Regulatory Commission issued a construction permit for TerraPower's Kemmerer project in March 2026. Its Natrium reactor is rated at 345 MWe, above the IAEA's 300 MWe SMR threshold, so it is more accurately described as an advanced modular reactor than an SMR.

AI is changing the demand case

Climate policy, energy security and industrial strategy remain core drivers of renewed nuclear interest. Hyperscale data centres and artificial-intelligence infrastructure add another source of demand because they require large volumes of continuous, reliable electricity. Their operators are also under pressure to secure low-carbon supply around the clock, rather than matching annual consumption with intermittent renewable generation.

That combination has brought technology companies directly into the nuclear market. Announcements associated with technology companies collectively reference more than 10 GW of nuclear capacity, but they mix firm power-purchase agreements, reactor restarts, development agreements and future options. They should not be described as a fully licensed, financed or committed 10 GW construction pipeline.

The bottlenecks are shifting

Commercial interest does not remove the remaining constraints. Some advanced reactor designs require High-Assay Low-Enriched Uranium and specialised fuels for which commercial supply in Western markets remains limited, although the United States is expanding domestic capacity. A concentrated fuel supply chain can affect both project timing and energy-security objectives. Not every SMR requires HALEU: light-water designs such as the BWRX-300 use conventional reactor fuel.

Licensing is another critical issue. Nuclear regulators have traditionally assessed large, site-specific plants. They are now adapting those frameworks for standardised modules, new cooling systems, different fuels and deployment models that may place several units at one site. The countries that establish credible and efficient regulatory pathways early will be better positioned to participate in the emerging supply chain.

Indonesia's position
Indonesia has begun putting several of the necessary pieces in place. The RUPTL 2025-2034 introduces 500 MW of nuclear capacity into PLN's planning for Sumatra and Kalimantan. This is an important policy signal, not a final decision on technology, site, procurement or construction. The earliest 2032 target remains aspirational and depends on decisions that have not yet been completed.

In July 2025, BAPETEN gave PT ThorCon Power Indonesia approval to conduct a formal siteevaluation programme on Kelasa Island in Central Bangka. The approval concerns the site-evaluation plan and management system; it is not approval of the site itself and does not authorise construction or operation.

Indonesia also hosted a Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology workshop with the United States and Japan in March 2026. The programme supported experience-sharing and capacity building on safety, security, safeguards, regulation, licensing, human resources and industry. It did not establish or align Indonesia's nuclear standards.

At the policy level, the government is developing a Nuclear Energy Program Implementing Organization framework. A durable programme will require formal authority, clear governance and defined relationships among the National Energy Council, the Ministry of Energy and Mineral Resources, PLN, BRIN and BAPETEN. Until those arrangements are established, the NEPIO should not be described as an operational coordinating body.

The strategic opportunity

SMRs could eventually provide localised, continuous low-carbon generation for industrial clusters, mining regions, data centres and suitable island systems. Nuclear generation and expanded transmission should be assessed as system options rather than automatic substitutes: in many locations, the least-cost and most resilient outcome may combine stronger grids, renewables, storage and firm generation.

The market is moving through licensing and first-of-a-kind construction, not yet broad commercial replication. Cost, fuel availability, safety, waste management, financing and public confidence will remain decisive. For Indonesia, the immediate priority is therefore not choosing a technology winner. It is establishing governance, completing credible site and grid assessments, designing bankable procurement structures, and building regulatory and human capacity.

Indonesia's choices during this preparatory period will determine whether it participates mainly as a technology buyer or develops a broader role in the regional nuclear ecosystem.

Mahardika Energy Partners works with technology providers, developers, investors and public institutions on early-stage nuclear strategy, policy navigation and partnership development. For further information on Indonesia's nuclear and SMR landscape, contact Mahardika Energy Partners.

Sources and regulatory references

• International Atomic Energy Agency, Small Modular Reactors and Advances in Small Modular Reactor Technology Developments.
• Ontario Power Generation and Canadian Nuclear Safety Commission, Darlington BWRX-300 licensing and construction updates.
• US Nuclear Regulatory Commission, Kemmerer Power Station Unit 1 construction permit decision, March 2026.
• National Energy Council, Ministry of Energy and Mineral Resources and PLN, RUPTL 2025-2034 and national nuclear policy materials.
• BAPETEN, Kelasa Island site-evaluation programme approval, July 2025.
• Japan Atomic Industrial Forum International Cooperation Center, FIRST workshop in Jakarta, March 2026.