Indonesia gives tax incentives for renewable energy investment

Citation

(2010), "Indonesia gives tax incentives for renewable energy investment", Management of Environmental Quality, Vol. 21 No. 4. https://doi.org/10.1108/meq.2010.08321dab.005

Indonesia gives tax incentives for renewable energy investment

Article Type: News From: Management of Environmental Quality: An International Journal, Volume 21, Issue 4

Indonesia has recently introduced tax incentives to attract investment in renewable energy as the former member of the Organization of Petroleum Exporting Countries seeks to reduce reliance on fossil fuels, the Finance Ministry has said. Finance Minister Sri Mulyani signed a decree late that reduces the base used to calculate income tax by 5 per cent of total investment for six years. The government will also allow faster asset amortization and impose a lower tax rate on dividend payments for non-resident investors.

Jakarta will also compensate losses incurred by investors for a period of between five and ten years, the ministry said, without elaborating. “Strategic” equipment and machinery needed for renewable energy projects will also be exempted from value-added tax and import tariffs, it added.