The Ministry of Energy and Mineral Resources said that efforts to utilize geothermal energy as a national energy source are still not optimal. This is due to the many levies or taxes that are quite high since the exploration stage.
“Currently, if we look at geothermal energy, there are many levies since the exploration period. We are currently reviewing with UGM how we can reduce exploration, production and other fees,” said the Director of Geothermal Energy at the Ministry of Energy and Mineral Resources, Gigih Udi Atmo, in Jakarta, Monday (9/9).
According to him, geothermal management is less attractive to investors because of the large levies since the early stages. Therefore, his party is reviewing incentives to attract more investment in the sector.
“We also studied the surface and subsurface PBB of the earth, which is 1.9% since it started operating,” he added.
With tax incentives, the government hopes that the benefits obtained by both companies and the surrounding community can increase. For this reason, geothermal management must still be required to be able to contribute to the environmental and social development of the community around the location.
“So the incentive is to reduce costs before entrepreneurs get revenue, and the surrounding population also enjoys it,” he said. (Z-11)
#Levies #Geothermal #Energy #Development #Optimal
List of geothermal power plant in Indonesia
Table of Contents
Unlocking Indonesia’s Geothermal Energy Potential: Challenges and Opportunities
Indonesia, home to the world’s largest geothermal potential, is yet to fully harness this renewable energy source. Despite its vast geothermal capacity, estimated at around 27.79 gigawatts (GW) [[2]]and even as high as 29 GW [[3]], the country’s geothermal energy development remains suboptimal. The main culprit behind this underutilization is the multitude of levies or taxes imposed on geothermal energy exploration and production, which deters investors and hinders the sector’s growth.
According to the Director of Geothermal Energy at the Ministry of Energy and Mineral Resources, Gigih Udi Atmo, the numerous fees associated with geothermal energy exploration and production are a significant obstacle to attracting investment in the sector. These levies, which are imposed from the early stages of exploration, make geothermal management less attractive to investors [[1]]. To address this issue, the Ministry is reviewing incentives to reduce exploration, production, and other fees, with the goal of creating a more conducive environment for investment in geothermal energy.
Indonesia’s geothermal energy potential is enormous, and its development is crucial for the country’s energy security and sustainability. Geothermal energy can play a vital role in reducing the country’s reliance on fossil fuels and mitigating climate change. In fact, incorporating geothermal energy as a renewable energy objective in Indonesia’s energy policies can have a significant impact on the country’s energy landscape [[1]].
Despite the challenges, there are opportunities for growth and development in Indonesia’s geothermal energy sector. The government’s efforts to review and revise the existing policies and regulations are a step in the right direction. Additionally, international organizations, such as the Asian Development Bank, are supporting Indonesia’s efforts to develop its geothermal energy sector and empower local communities [[3]].
Indonesia’s geothermal energy potential is vast, but its development is hindered by the numerous levies and taxes imposed on the sector. To unlock this potential, the government must create a more conducive environment for investment by reviewing and revising the existing policies and regulations. By doing so, Indonesia can harness its geothermal energy potential, reduce its reliance on fossil fuels, and contribute to a more sustainable energy future.
Keyword: Geothermal energy, Indonesia, energy policy, renewable energy, sustainability, investment, levies, taxes.
Country update The fast growth of geothermal energy development in indonesia
Unlocking Indonesia’s Geothermal Energy Potential: Challenges and Opportunities
Indonesia, home to the world’s largest geothermal potential, is yet to fully harness this renewable energy source. Despite its vast geothermal capacity, estimated at around 27.79 gigawatts (GW) [[2]]and even as high as 29 GW [[3]], the country’s geothermal energy development remains suboptimal. The main culprit behind this underutilization is the multitude of levies or taxes imposed on geothermal energy exploration and production, which deters investors and hinders the sector’s growth.
According to the Director of Geothermal Energy at the Ministry of Energy and Mineral Resources, Gigih Udi Atmo, the numerous fees associated with geothermal energy exploration and production are a significant obstacle to attracting investment in the sector. These levies, which are imposed from the early stages of exploration, make geothermal management less attractive to investors [[1]]. To address this issue, the Ministry is reviewing incentives to reduce exploration, production, and other fees, with the goal of creating a more conducive environment for investment in geothermal energy.
Indonesia’s geothermal energy potential is enormous, and its development is crucial for the country’s energy security and sustainability. Geothermal energy can play a vital role in reducing the country’s reliance on fossil fuels and mitigating climate change. In fact, incorporating geothermal energy as a renewable energy objective in Indonesia’s energy policies can have a significant impact on the country’s energy landscape [[1]].
Despite the challenges, there are opportunities for growth and development in Indonesia’s geothermal energy sector. The government’s efforts to review and revise the existing policies and regulations are a step in the right direction. Additionally, international organizations, such as the Asian Development Bank, are supporting Indonesia’s efforts to develop its geothermal energy sector and empower local communities [[3]].
To unlock Indonesia’s geothermal energy potential, the government must create a more conducive environment for investment by reviewing and revising the existing policies and regulations. This includes reducing the levies and taxes imposed on the sector, as well as providing incentives to attract investors. By doing so, Indonesia can harness its vast geothermal energy potential, reducing its reliance on fossil fuels and mitigating climate change.
List of Geothermal Power Plants in Indonesia
* [Insert list of geothermal power plants in Indonesia]
Keywords: geothermal energy, Indonesia, energy security, sustainability, levies, taxes, investment, renewable energy, fossil fuels, climate change.
References:
[[1]]An Overview of Indonesia’s Geothermal Energy Sector. (2022). ASEAN Briefing. https://www.aseanbriefing.com/news/an-overview-of-indonesias-geothermal-energy-sector/
[[2]]The geothermal energy landscape in Indonesia. (2024). ScienceDirect. https://www.sciencedirect.com/science/article/abs/pii/S1364032123008663
[[3]]Indonesia’s Untapped Geothermal Energy Potential. (2024). Energy Tracker Asia. https://energytracker.asia/geothermal-energy-indonesia/