"This year, a 30 MW nuclear power plant will be built in Serpong, Banten," Antara news agency quoted Indonesian Research and Technology Minister Gusti Muhammad Hatta as saying, referring to an area of Banten province which borders Jakarta.
He said the plant would be built by the National Nuclear Energy Agency, or BATAN, and used to generate power for the surrounding areas.
Indonesia currently has three small nuclear reactors used for research.
Its plan for a power-generating nuclear plant dates back to 1953.
In 1989, a feasibility study was conducted for building a 7,000 MW reactor on the northern coast of Central Java province, but the plan was eventually canceled due to resistance from local residents.
Other possible sites for a nuclear power plant, including in Bangka-Belitung Islands off Sumatra Island, also met resistance from locals concerned about safety, especially considering that earthquakes and volcanic eruptions frequently occur in Indonesia.