By MarEx 2015-08-20 19:24:29
The Indonesian government has promised tax cuts to investors involved in developing the country’s untapped renewable energy potential.
The announcement was made on Wednesday by Energy and Mineral Resources Minister Sudirman Said, reports The Jakarta Post.
“We need regulations that give more opportunities for investment, such as the elimination of import taxes for capital goods used for developing new and renewable energy,” said Sudirman.
The new power is expected to come from geothermal power plants, solar photovoltaic, wind energy, biomass, mini or micro-hydro plants and ocean energy.
In June, the minister announced that he would specifically encourage the use of energy generated from the sea, a program that suited the government’s marine centered development policy. Some trial projects have already been undertaken, for example, a 10 kilowatt system in East Nusa Tenggara. A current power trial is anticipated later this year.
In its long-term energy strategy, the Indonesian government projects that renewable energy will account for at least 23 percent of the nation’s total energy consumption by 2025.