Regulation on geothermal production bonus to be issued in August: Official
Wednesday, April 20 2016 - 06:34 AM WIB
The Ministry of Energy and Mineral Resources has completed drafting government regulation on geothermal production bonus, which is expected to be issued in August of this year.
Director General of New and Renewable Energy at the ministry Rida Mulyana said Tuesday that the draft has been sent to the President?s Office for approval.
The regulation will arrange the percentage of so-called production bonus from geothermal power plants for regencies or mayoralties where the projects are located.
According to Rida, the production bonus is set at one percent of the government?s revenue portion in geothermal power plants so as not to create burden for the developers.
The geothermal production bonus is expected to help increase the economic benefits for regions with geothermal resources.
Elsewhere, Rida said that as part of efforts to accelerate the development of geothermal power plants in the country and to meet the government?s target of 7,000 MW geothermal power plants in 2025, the ministry has also completed drafting new regulation on the direct use of geothermal, expected to be also in August. In addition, the ministry is drafting a government regulation on indirect use of geothermal.
Editing by Reiner Simanjuntak