Indonesia is to introduce incentives for renewable energy investors including a reduction in import taxes for equipment.
Energy and Mineral Resources Minister Sudirman Said said he aimed to create a more attractive investment environment for developing reenwables in the country, according to local reports.
He said: “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.”
Said added that lowering import taxes would generate less income for the country, however, it would result in added value in the sector in the long-term.
Despite strong solar resources, development in renewables has been hindered by financing issues, regulation and land acquisition issues.
Although most new capacity from renewables in the near future is expected to come from geothermal projects, state-owned oil and gas firm Pertamina said it had 60MW of PV projects in the pipeline for before 2019.