Indonesia Clarifies UAE’s Clean Energy Plans, Denies Nuclear Power Project by EGA

Jakarta, Indonesia – The government of Indonesia clarified that Emirates Global Aluminium (EGA) will venture into other clean energy initiatives in the country, correcting a previous statement that inaccurately stated the UAE company intends to construct a nuclear power plant. The clarification was made after EGA denied any role in the nuclear energy industry, reiterating that it is still interested in Indonesia's clean energy and industrial development prospects.

Indonesia's economic affairs ministry initially said EGA would construct a nuclear power plant of as much as 5 gigawatts (GW) to provide the low-carbon electricity shortfall required to increase an aluminium smelter in North Sumatra. The ministry subsequently walked back its comment, admitting the error. An EGA spokesman reiterated that the company does not engage in nuclear energy projects, but reiterated its interest in pursuing other clean energy options in Indonesia.

EGA's Aluminium Growth in Indonesia
EGA, a top global aluminium producer, has entered into a collaboration with Indonesia since 2022 to assist the state-owned Indonesia Asahan Aluminium (INALUM) smelter in boosting production capacity. The expansion will boost the production capacity by as much as 400,000 tons per annum. Availability of ample low-carbon power sources supports the expansion with Indonesia aiming to be a global leader in environmentally friendly mineral processing.

Indonesia has been keen to encourage foreign investment in its mineral processing industry, using its abundant nickel, copper, and bauxite deposits. The government initiative to achieve value-added processing is supported by its broader strategy of diversifying beyond raw material exports and building a more diversified industrial base.

High-Level Talks on Clean Energy Development
Senior Economic Minister Airlangga Hartarto recently met with EGA CEO Abdulnasser Ibrahim Saif Bin Kalban in Dubai to explore aluminium industry expansion opportunities and possible clean energy projects to meet Indonesia's increasing industrial demands. The meetings took place at the World Government Summit, where Airlangga also met with Mohamed Jameel Al Ramahi, CEO of Masdar, the UAE state-owned renewable energy firm.

Masdar and Indonesia have also partnered on a number of clean energy initiatives, such as the 145-megawatt floating solar power plant over a West Java reservoir. Negotiations also involved the construction of a pipeline conveying gas from Aceh to East Java, which can further assist Indonesia's shift towards a diversified and more secure energy mix.

Indonesia's Clean Energy Transition
Indonesia does not have any running nuclear power plants currently, and the government has been keen to increase its portfolio of renewable resources with solar, wind, hydro, and geothermal programs. Indonesia's vision for clean energy infrastructure aligns with its goal of minimizing carbon emissions and moving towards sustainable industrial development.

With a revision of its statement, the Indonesian government made it clear that it intends to seek other sources of clean energy as opposed to nuclear. That EGA continues to have interest in Indonesia proves that collaboration towards industrial development as well as alternative energy will be a priority concern for the immediate future.

As the world industries move towards greener operations, Indonesia's alliances with the world's leading players like EGA and Masdar will be at the forefront in attaining medium-term sustainability objectives while solidifying itself as a leading hub for mineral processing and clean energy innovation.

Source: Reuters