Government plans fiscal incentives for geothermal projects
Wednesday, June 7 2017 - 03:53 AM WIB
Petromindo|Lucky
The government plans to provide fiscal incentives for geothermal developers in a bid to help accelerate the development of geothermal power plants in the country.
Bisnis Indonesia quoted Director General of New and Renewable Energy at the Ministry of Energy and Mineral Resources Rida Mulyana as saying Wednesday that a new ministerial regulation on the planned fiscal incentives is currently being finalized.
Rida said that the planned incentives include value added tax exemption for developers in the exploration and exploitation stages, and exemption of import duty.
He said that the government has previously provided various incentives including new regulations to provide greater certainty for investment in the upstream and downstream sides of the geothermal sector.
Despite Indonesia?s huge geothermal potential, installed geothermal power plant capacity currently stands at only 1,698.5 MW. The government aims to boost the installed capacity to 7,000 MW by 2025 to help increase the contribution renewables in the country?s energy mix. (*)