Finance Ministry Eyes Biofuel Incentives
The Finance Ministry is preparing a package of incentives to support the government's ambitious program to produce 200,000 barrels of biofuel a day by 2010, a senior official says.
Unggul Priyanto, the director for energy resources development at the Agency for the Assessment and Application of Technology (BPPT), said Thursday (8/3/07) in Jakarta that the Ministry was in the process of formulating two types of incentives to be offered to investors involved in biofuel projects. The planned incentives, he said, consisted of tax breaks and subsidies on loan interest.
According to the proposal, the tax breaks will be given during the first years of operation of companies involved both in feed-stock production and in biofuel production, while the interest subsidies would be provided so as to ensure that investors would not have to pay loan interest of more than 10% a year.
"We hope we can attract more investors with these kinds of incentives," Unggul told The Jakarta Post on the sidelines of a seminar on renewable energy.
Unggul Priyanto, the director for energy resources development at the Agency for the Assessment and Application of Technology (BPPT), said Thursday (8/3/07) in Jakarta that the Ministry was in the process of formulating two types of incentives to be offered to investors involved in biofuel projects. The planned incentives, he said, consisted of tax breaks and subsidies on loan interest.
According to the proposal, the tax breaks will be given during the first years of operation of companies involved both in feed-stock production and in biofuel production, while the interest subsidies would be provided so as to ensure that investors would not have to pay loan interest of more than 10% a year.
"We hope we can attract more investors with these kinds of incentives," Unggul told The Jakarta Post on the sidelines of a seminar on renewable energy.