Geothermal Power - Customs Exemptions

The Minister of Finance has issued Regulation No. 26/PMK.010/2005 on Customs Duties Exemption for Imported Goods for Geothermal Power Business Activities (“Regulation”) as a means of driving development in the energy sector.

The Regulation reflects an acknowledgment of the high start-up capital costs involved in the establishment of new energy reserves and is an overt attempt by the Government to encourage development in this crucial area. The Regulation contains an Attachment which lists the goods that are exempt from customs duties. The list is general in nature covering a wide variety of goods. It is expected that more detailed lists will be provided however the current list includes, among an extensive list, drilling and production equipment; plant and machinery; transportation; tanks and shop equipment; electrical goods; medical equipment; paints and oils; and, laboratory equipment. Imported goods listed in the Attachment are duty free (0%).