Wednesday, November 4, 2015

Indonesia: Call for an End to Property Tax for Geothermal Exploration Areas

Finance Ministry Asked to Scrap Geothermal Exploration Tax (Tempo.co)

The Energy and Mineral Resources Ministry of Indonesia has proposed that the Finance Ministry scrap property tax (PBB) for geothermal exploration area to boost geothermal electricity development.

“Geothermal investment is high cost and high risk,” said the Energy Ministry’s geothermal director Yunus on Tuesday.

Exploration has been considered a taxable activity, even though there is no guarantee that investors will find geothermal potential.

Investors also find it difficult to seek loans to boost their businesses because banks know that the economic value of exploration is still low.

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