|Year:||2010 (Jan 29th)|
|Policy status:||In Force|
|Date Effective:||2010 (Jan 29th)|
|Policy Type:||Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Tax relief|
|Policy Target:||Multiple RE Sources, Multiple RE Sources>All|
|Policy Sector:||Multi-sectoral Policy|
|Size of Plant Targeted:||Small and Large|
|Agency:||Minister of Finance|
|URL:||http://jdih.esdm.go.id/peraturan/PMK-21-2010.pdf (Original regulation, Indonesian)|
|Legal References:||Ministry of Finance Regulation No.21/PMK.011/2010 - THE GRANTING OF TAXATION AND CUSTOMS FACILITIES FOR ACTIVITIES TO MAKE USE OF RENEWABLE ENERGY SOURCES|
The Regulation of 2010 mainly applies to renewable energy, but also to power plants in general. It stipulates that Import duty exemptions are valid for:
Value Added Tax (VAT) exemptions apply to taxable goods imported to develop renewable energy projects, as long as no substitutes are manufactured in Indonesia. Exemptions are valid for 2 years with optional exenstion depending on applicability and feasibility. As of 2016, the exemption is still applicable.
The VAT exemption applies to machinerey (both constructed and dismantled); while tax may still be rasied on spare parts that companies need to use renewable energy for end-product manufacturing.
In order to view a full versions of Indonesia'S Value-Added Tax and Import Duty Exemption For Renewable Energy Property please click here (in Indonesian). For the supportive document in English please go here.
Last modified: Tue, 02 May 2017 17:14:55 CEST