Bank Indonesia Policy Mix

Fiscal Incentives Rp TAX: Tax Holiday Income Tax Facility VAT Facility Import Tax Facility Property Tax Several tax incentives to promote green private investment. Instruments 100% tax discount for Up to 20 years depends on the amount of investment for 17 pioneer industries. Tax Allowance for geothermal businesses, renewable energy generators, and bioenergy industries. The exemption of article 22 income tax on imported goods for geothermal business activities. VAT exemption on imported goods for geothermal activities. Import tax exemption on geothermal activities. Fiscal Transfer Strengthening the capacity of sub-national governments in tackling climate change. Profit Sharing Fund on Natural Resources (DBH SDA) DBH SDA Forestry DBH SDA Geothermal Special Allocation Fund for Physical Development (DAK Fisik): • DAK Fisik Agriculture & Irrigation Development • DAK Fisik Environment Development DAK Fisik Forestry Development • DAK Fisik Marine & Fisheries Development Non Physical Special Allocation Fund (DAK Non Fisik) DAK Non Fisik for Waste Management (for tipping fee support) Incentive Fund (DID) • Property tax deduction exploration stage. up to 100% for DID on Waste Management Source: Ministry of Finance 109

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