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Tax Incentive Policy for Geothermal Development: A Comparative Analysis in ASEAN

1Faculty of Administrative Science, Universitas Indonesia, Indonesia

2Fiscal Policy Agency, Ministry of Finance, Indonesia

Received: 13 Jun 2019; Revised: 24 Nov 2019; Accepted: 23 Jan 2020; Available online: 15 Feb 2020; Published: 18 Feb 2020.
Editor(s): Anh Tuan Hoang
Open Access Copyright (c) 2020 The Authors. Published by Centre of Biomass and Renewable Energy (CBIORE)
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Citation Format:

This paper examines tax incentive policies in geothermal industries in ASEAN to better understand the development of geothermal industry investment in the ASEAN Member States (AMS) using a qualitative method. The results indicate that tax incentive policies have supported the investment climate and the development of geothermal industries in the AMS. Geothermal investments and production capacities in AMS have increased significantly. AMS that provide geothermal tax incentives include Indonesia, Lao PDR, the Philippines, Thailand and Vietnam. The performance of geothermal tax incentive policies is reflected in the level of utilization of geothermal potential, which is higher in states that provide greater tax incentives. The results also indicate that geothermal power plants in AMS use dry steam, flash and binary cycle technologies with flash plants being the most common. Results suggest that the future development of geothermal energy in AMS will be related to the tax incentive policy and investment climate in those states. Furthermore, the granting of various types of tax incentives should be focused on the initial investment in geothermal development. ©2020. CBIORE-IJRED. All rights reserved

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Keywords: policy analysis; tax incentive; geothermal industry; energy development; investment.
Funding: Ministry of Finance of the Republic of Indonesia

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