Country:Indonesia
Year:2010 (Jan 29th)
Policy status:In Force
Jurisdiction:National
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://www.flevin.com/id/lgso/translations/JICA%20Mirror/english/4244_21_PMK.011_2010_e.html
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
Description:

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:

  • for machinery and capital for renewable energy; 
  • for capital goods required for public electricity supply (on- and off-grid).

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.

Related Documents:

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