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Indonesia and South Korea sign nuclear cooperation deal

25 July 2007, JAKARTA - Medco Energi Internasional and Hydro and Nuclear Power Co. Ltd. from South Korea have signed a preliminary pact to build a nuclear reactor in Indonesia, which has become a hot item due to danger of earthquakes in the country. Minister Purnomo Yusgiantoro, Mining and Energy, Wednesday said that both energy firms had finalized deals with a total value of around 6.5 billion euro during President Susilo Bambang Yudhoyono's three-day visit to Seoul.

"Now is the time for Indonesia to look for good nuclear power plants," said the minister during a conference held in the South Korean capital. Indonesia said before it want to build it's first nuclear power plant by 2016, although earlier the suggestion was made that Indonesia would team up with a Japanese firm for the development. The minister reiterated the deadline of 2016, with a start of operations by 2017. Indonesia is keen to diversify its energy sources as it faces rising demand and falling output of oil and gas.