Louise Williams, Jakarta – The Indonesian Parliament has passed a controversial nuclear energy bill, clearing the way for the construction of up to 12 nuclear power plants.

The first nuclear reactor is due to be built alongside the dormant Muria volcano in Java.

Opponents of the nuclear program have warned of a potential disaster because of the high level of volcanic and earthquake activity throughout Indonesia.

A computer simulation of radioactive fallout from the Muria site by the Australian National University last year showed that radioactive gas would reach Australia within a few days of an accident, particularly during summer wind patterns.

Scores of anti-nuclear activists demonstrated outside the Indonesian Parliament yesterday as the bill was passed, rejecting assurances by the Science and Technology Minister, Dr Jusuf Habibie, that nuclear power was just one of Indonesia's future energy options.

Speaking in favour of the bill, Dr Habibie said: "We have to prepare the umbrella before the rain. We have found other energy sources such as geothermal, so I'll do my best not to use this nuclear plan."

However, many energy industry analysts believe the 12-site reactor program is inevitable given Indonesia's rapid industrial growth and consequent power crisis.

Government studies have concluded that demand will outstrip the generating capacity of the current grid in less than a decade, known oil supplies will be exhausted in 20 years, and known gas deposits in 38 years.

The National Atomic Energy Agency has said that work can begin before 2000 on the first 600mW plant for the Muria site.

The agency has also dismissed any danger to Australia. It says a cloud of radioactive gas would be impossible because of a five-barrier sealing system which would contain all contamination in an accident.

The Howard Government has indicated it would like to supply uranium to Indonesia. But an Indonesian official said decisions on buying nuclear fuel would depend on politics, and that more uranium suppliers were entering the market, including members of the former Soviet Union, South Africa, Namibia, Nigeria and Canada.

But he added: "Right now we have a good neighbour policy with Australia, so it would be sensible to buy from the nearest country."