METI/ECCJ/AOTS Training Program

Indonesia

4. Supportive System by Government
(for Investment and Technology Development)

Supportive Measures (1)
Energy Conservation & Recycling Assistance Law

Tax Incentives -From 1984-

Intended for	Tax incentives
<designated facilities/ equipments > ･ 91 facilities/ equipments ･52 facilities/ equipments for small and medium companies ･Others	1. Tax exemption equivalent to 7% of the equipment acquisition cost from the income tax or corporate tax payable (applicable only to small and medium companies from fiscal year 1999) or 2. Special depreciation of up to 30% of the equipment acquisition cost
Systems approved on the basis of the "E-C & Recycling Assistance Law" (Energy savings of 5% or 5,000 kL)

* Basic acquisition cost = [Acquisition cost] x [Multiplier rate (25 to 100%)]
* Special depreciation: The depreciation is classified as "loss" as defined in the Tax Law, and is included in the calculation of profit in the settlement of accounts.
[Status regarding the use of tax incentives]

（Unit: cases）

	FY 1984	FY 1998	FY 1999	FY 2000	FY 2001	FY 2002	FY2003
No. of cases	10,544	24,609	19,981	12,177	13,318	11,643	6,412

Supportive Measures (2)
Subsidy
Many subsidy schemes are handled by NEDO and other organizations

Projects for installation of advanced energy efficiency facilities / systems
<i.e. High-temperature air combustion / Regenerative burner >
Projects for introduction of co- generation systems
Building / extending high heat insulation houses and building
Introduction of HEMS, BEMS (ENERGY MANAGEMENT SYSTEM )
Supporting ESCO enterprises
Purchasing low CO² emission auto mobiles
R&D Projects for high energy efficient technologies and systems
<others>

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