Geothermal Environmental Service Tariffs in Conservation Areas

The government will determine the amount of Non-Tax State Revenue (“PNBP”) tariffs for Geothermal Environmental Service Utilization Business Licenses (“PB-PJLPB”) in Conservation Areas through a draft Regulation of the Minister of Forestry.

“This will be established in the Regulation of the Minister, subject to the approval of the Minister of Finance,” said Director of Environmental Service Utilization, Nandang Prihadi, to Hukumonline.

The PNBP tariff will be divided into four components, namely Value A for biodiversity at Rp 9,600,000 per hectare per year; Value B1 related to water management at Rp 106,000 per hectare per year; and Value B2 and Value B3, which represent carbon sequestration and carbon release, respectively, at Rp 320,000 per hectare per year.

The tariff is a follow-up to Regulation of the Government No. 36 of 2024 on Types and Tariffs for Non-Tax State Revenue Applicable to the Ministry of Environment (“Regulation 36/2024”). This regulation is intended to strengthen the protection of Conservation Areas, while providing legal certainty for geothermal Business Actors operating in Conservation Areas.