Nuclear Power in Indonesia - Compensation for Losses

The Government has issued Regulation No. 46 of 2009 to increase the maximum liability for a nuclear accident to IDR 4 trillion from the previous maximum level of IDR 900 million. The legal framework for this government regulation is Law No. 10 of 1997 on Nuclear Power. The losses that are subject to compensation payments are those that arise as a result of an accident at a nuclear power facility or as a result of an accident that occurs in the transport of nuclear fuel and materials. In essence, the government regulation amends Article 34(1) of the Law.

Interestingly, the increase in the maximum liability payments are not indicative of any realization on the part of the government that there are dangers in the use of nuclear power and energy that are costly to rectify in the event of an accident. To the contrary, the maximum liability has been raised to IDR 4 trillion only to reflect the change in the value of the Rupiah against the United States Dollar. In fact, the regulation would suggest that the Indonesian government is keen to develop a greater nuclear power capacity, as nuclear power is seen as a power that can bring great benefits to the broader Indonesian community.