Kadin Asks Govt to Give Incentives in Green Infrastructure

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    TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) deputy chairwoman for environment and climate change, Shinta Widjaja, said the government needed to give incentives to investors who planned to spend their money on the development of green infrastructure projects.

    “In terms of cost, green infrastructure is long-term, so the government must be clear in giving incentives,” said Shinta on Wednesday.

    Shinta said Indonesia had a great deal of resources to develop geothermal plants, but it was difficult to develop them due to the large cost of production. However, according to Shinta, geothermal has long-term effects on energy efficiency. “Productivity will also be higher and better,” said Shinta.

    Regarding financing, Shinta hoped financing institutions also provided incentives to investors that developed green infrastructure. She said the World Bank, for example, would only fund investments in projects for clean energy. “Initiatives from both business players and financial institutions are necessary to help develop green infrastructure,” said Shinta.

    Kadin, Shinta said, also proposed that the government should give tax allowance and tax holiday to investors that developed green infrastructure as they can entice investors in the environmentally-friendly development sector.

    Shinta also hoped the government gave incentives to consumers. She said the government needed to mull whether the results of this green infrastructure deserved sales tax. “This needs to be considered. Is it possible for environmentally-friendly products to gain sales tax?” said Shinta.