Approaching the end of the current administration’s term of office, the House of Representative (“House”), passed the Bill on Geothermal Energy (“Bill”) on August 26th.
The Bill aims to boost the development of the geothermal business sector as an alternative source of energy, and to address Indonesia’s current electricity shortages and energy needs. To achieve this objective, the Bill establishes provisions on the following matters:
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a.
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Distribution of authorities of government institutions over geothermal resources;
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b.
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Licensing procedures for direct and indirect utilization of geothermal resources;
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c.
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Geothermal energy prices;
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d.
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Rights and obligations of geothermal businesses related to the environment, taxes and levies;
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e.
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Harvesting geothermal resources in forestry areas; and
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f.
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Sanctions for non-compliance.
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