Outlining plans for reviving investor interest in Indonesia’s renewable energy resources at an industry event in August, Sudirman Said, minister of energy and mineral resources, acknowledged that the removal of import duties on equipment for renewable energy projects could lead to an initial drop in state revenues. However, the plans would generate added value in the long term, helping boost renewable energy sources that currently account for just 5-6% of the country’s energy consumption.
“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,” the minister said at the conference.
The government also announced renewable energy development agreements at the event worth around Rp106.3trn ($7.5bn). Deals included five power purchase agreements, nine memoranda of understanding and 13 licences for geothermal power projects, in line with government efforts to boost renewable energy’s share of total power to 23% by 2025.