"Nuclear energy alone is not a panacea, but it is likely in the near future to have an increasing role as part of the global energy mix," ElBaradei said in a speech at Indonesia's Ministry of Research and Technology.

With rising industrialisation, he said controlling the spread of nuclear technology was becoming increasingly difficult as peaceful nuclear programmes could also be used to produce material for atomic weapons.

"Countries that have such operations are only a short step away from a nuclear weapons capability," ElBaradei said, adding that the spread of nuclear technology had increased fears of proliferation.

"At the same time that we are seeing rising expectations for nuclear power, we are equally witnessing concerns regarding the spread of nuclear weapons and of sensitive nuclear technology.

"The recent nuclear test by the DPRK (North Korea) and international concern about the nature of Iran's nuclear programme are two cases in point," he said.

"In my view, we are at a crossroads. It is essential for all parties to renew their commitments to the Nuclear Non-Proliferation Treaty."

ElBaradei said the pace of disarmament had been too slow, with 27,000 warheads in existence.

"And it is becoming painfully clear that, as long as some countries place strategic reliance on nuclear weapons as a deterrent, other countries will be tempted to emulate them. We cannot delude ourselves into thinking otherwise."

The IAEA head repeated his call for a resumption of negotiations to resolve the North Korean and Iranian nuclear issues.

"I hope with the six-party talks, or any other channels, that we would be able to come up with a solution to the North Korean nuclear issue," he told a press conference afterwards.

ElBaradei's visit to Indonesia comes as North Korea continues to face heavy international pressure following its first atomic bomb test on October 9.

Western nations are also pressing for sanctions against Iran over its uranium enrichment programme which they fear is part of a drive to build a nuclear bomb.

ElBaradei said he was "looking forward to the resumption on negotiations," reitering that "sanctions alone is not a solution" to Tehran's nuclear drive.

He also repeated his call for a multilateral approach to ensure no one country has the capability to independently produce sensitive nuclear material amid increasing interest in atomic energy.

Most of the recent expansion of nuclear power has been in Asia, with China and India planning massive expansion of their generating capacity while Japan, Pakistan and South Korea are also planning to expand nuclear capacity.

"In the near future we may well see additional countries in the Asia-Pacific region choosing the nuclear power option," he said, pointing to interest in Indonesia and Vietnam.

Countries such as Turkey were also planning to introduce nuclear programmes while many others, including Argentina, Bulgaria, Kazakhstan and South Africa, were planning to expand their existing programmes, he noted.

related report

IAEA supports Indonesia's nuclear plans
Jakarta (AFP) Dec 08 - The International Atomic Energy Agency Friday said it supported Indonesia's plans to build nuclear power plants to address its growing energy needs, despite opposition from environmentalists.

"We are currently supporting Indonesia's preparation for its planned nuclear power plant construction," Mohamed ElBaradei, head of the global nuclear watchdog, said in a speech at Indonesia's Ministry of Research and Technology.

"With its decision to embark on a nuclear power programme, Indonesia is taking a step to expand its energy mix and energy availability.

"At the IAEA, we stand ready to assist you in finding the solutions that are best suited to your needs and priorities."

Indonesia's nuclear power plans were shelved in 1997 in the face of mounting public opposition and the discovery and exploitation of the large Natuna gas field. But the plans were floated again last year amid growing power shortages.

Indonesia had previously said it planned to build its first nuclear power plant, with a capacity of 1,000 megawatts, on densely-populated Java island by 2015. The government, however, has yet to secure investors.

The province of Gorontalo, on Sulawesi island, is considering developing a floating nuclear power plant using Russian expertise.

Environmental group Greenpeace criticised ElBaradei's support and said the plan posed a danger to quake-prone Indonesia and its neighbours.

"By endorsing nuclear energy in Indonesia, Mr ElBaradei is contributing to growing insecurity in the region," Greenpeace Southeast Asia director Emmy Halfild said in a statement.

"None of the problems related with nuclear power have been resolved, such as disposing of radioactive waste and all the associated risks when placed in an area with a volatile geological structure like Indonesia. Instead it will only pose danger to the Indonesians and other countries," she said.

Indonesia is Southeast Asia's only member of the Organisation of Petroleum Exporting Countries (OPEC), but its oil output has fallen in recent years to about one million barrels per day amid flagging investment.

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