Based on the National Energy Policy, Indonesia set a target to achieve a renewable energy (“RE”) mix in primary energy supply of 23% by 2025 and at least 31% in 2050. Indonesia also aims to achieve net zero carbon emissions by 2060. However, progress towards achieving the National Energy Policy targets has been slow.
Contact online >>
Under the new regulatory regime, IUPTLU holders must establish a five-year quota for development of Rooftop Solar PV systems in Indonesia. The quota must take into account (i) the national energy policy, (ii)
Over the past few years, the government has taken a number of measures to cut imports of modules from China, which is the largest global supplier of equipment for solar power projects. The ALMM stands as a pivotal
The objective of this paper is to evaluate policy on Value Added Tax (VAT) incentives available to solar energy in Indonesia. The research method used is a qualitative approach. The data are
The Ministry of New and Renewable Energy (MNRE) said the levy was set at 40% for photovoltaic (PV) modules, while a 25% duty will be imposed on solar cell imports. The new regulation
The early Indonesian solar PV manufacturers found themselves increasingly unable to compete on price with imported modules, mainly because of low production volumes and obsolete
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
Furthermore, all taxable goods for import into Indonesia have a 7.5% import duty and a 10% value-added tax. Before the implementation of PMK 199/2019, a 10% income tax applies to taxable goods and the value-added
Duty exemption on these equipment will lower the costs for solar cell and module manufacturers. Import duty (BCD) exemption has been extended for specified goods used in the manufacture of silicon wafers,
Under the new regulatory regime, IUPTLU holders must establish a five-year quota for development of Rooftop Solar PV systems in Indonesia. The quota must take into account (i) the national energy policy, (ii) the IUPTLU holder’s electricity supply business plan, and (iii) the reliability of the IUPTLU holder’s electricity network.
This removal of capacity limits (subject to quota requirements) offers some scope for businesses to increase investments in Indonesia’s Rooftop Solar PV sector (assuming that the development quotas continue to grow in line with Indonesia’s national energy policy). 2. Excess Electricity Exports and Imports
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.
The results in terms of a total annual market demand for solar PV of around 10-30 MW in 2012-2020 have been devastating for the development of the solar PV manufacturing industry in Indonesia, which during this period had a production capacity of up to 580 MW.
The industrial policies that have been adopted over time have supported the development of the domestic solar PV manufacturing industry in Indonesia by a number of traditional industry measures.
Unlike the first generation of domestic solar PV module manufacturers, they should therefore be able to deliver modules to utility-scale projects in Indonesia requiring modules from first-tier suppliers.
We are deeply committed to excellence in all our endeavors.
Since we maintain control over our products, our customers can be assured of nothing but the best quality at all times.