Geothermal investors seek government incentives

Indonesian Geothermal Association (API) has asked the government to provide four types of incentives for geothermal power producers, the Investor Daily Indonesia newspaper reported in its Thursday edition.

The four incentives are: waiving of customs duty on power generation equipment, tax free for capital goods, delay in payment of exploration tax and the increase of electricity purchase prices.

API's deputy chairman Suryadharma said without these incentives it will be very difficult for geothermal producers to help the government in exploiting the geothermal potency in Indonesia.

"Other sectors like oil and gas have similar incentives and why not for the geothermal power producers?", Suryadharma said after attending a hearing with the House of Representatives Commission VII on draft law on energy on Wednesday.(godang)