A wind farm on the Indonesian island of Sumba. Photo: Antara
The Indonesian government plans to expand the list of incentives for “green investment,” cabinet members said at a summit in Jakarta on Monday.
On the table are tax breaks for imports of equipment that reduces pollution; and longer permits and favorable interest rates for companies with environmentally friendly policies.
“Tax allowance can be an attractive way to lure local and foreign investment, particularly for green investments,” Franky Sibarani, the head of Indonesia’s Investment Coordinating Board (BKPM), said at a press conference at the Tropical Landscapes Summit, The Jakarta Globe reported.
Environment and Forestry Minister Siti Nurbaya also outlined some of the planned measures, including soft loans for small and medium-sized enterprises and enhanced extension of licensing for certain types of businesses.
Also speaking at the event, Suryo Sulisto, head of the Indonesian Chamber of Commerce and Industry (Kadin), highlighted the need for a clear roadmap for green investment or green growth, which “remain for us just academic terminology” whose “application is difficult to measure,” he said.
Suryo called for basic regulatory changes to support companies on the path to sustainability, such as assistance for projects in dry regions or that reduce food risks.
Indonesia is making a concerted push to increase private and foreign investment to fuel its infrastructure drive, a hallmark of new President Joko “Jokowi” Widodo’s campaign.