New tax breaks for geothermal exploration in Indonesia to attract foreign investment
Geothermal exploration set on priority business list to benefit from tax breaks and easier permitting to attract foreign investment in Indonesia.
As reported this morning from Indonesia, the country’s government has issued new regulations on investments in the context of its “omnibus” job creation law, which we reported on. With the job creation law, the government removed some restrictions on foreign investment targeted to boost investment in the economy which has been hit by the pandemic.
The job creation law has effectively adapted 70 different laws, removing a “negative investment list” on businesses that are not open to foreign investment. At the same time though, there will remain some caps on foreign investment in certain sectors.
The negative investment list has been replaced by a “priority list”. This list offers incentives such as tax allowances or breaks on investment for businesses in coal gasification, geothermal exploration and smelting of ores such as nickel and copper.
The new regulation also will simplify the issuance of business permits considered low-risk. The new rules, so the reporting, are to come into effect 30 days from February 2, 2021.
Source: The Straits Times