New forestry ministry rule sets geothermal levies in conservation areas

Effective December 31, 2025, the Ministry of Forestry has issued Regulation No. 28/2025, establishing non-tax state revenue (PNBP) levy rates for geothermal activities conducted in conservation areas.

The regulation implements Government Regulation No. 36/2024 and is intended to provide legal certainty while optimizing state revenue. It introduces several levy components—Value A, Value B1, Value B2 and Value B3—designed to balance geothermal energy utilization with environmental protection and ecosystem restoration obligations.

Under the new framework, businesses operating in National Parks, Nature Tourism Parks and Grand Forest Parks will face higher financial obligations. The biodiversity component (Value A) is set at IDR 9.6 million per hectare per year, representing a significant cost for geothermal developers active in conservation zones.

The regulation applies not only to new permits but also retroactively to licenses issued prior to its effective date. As a result, affected businesses are required to recalculate their PNBP liabilities in accordance with the new tariff structure.

For a detailed analysis of the regulation and its implications, please refer to the full article here