Geothermal Sector Contribution To PNBP In 2023 Increases 34.8 Percent

Illustration. (Photo: Doc. Antara)

JAKARTA - Non-Tax State Revenue (PNBP) is an important source of income for the Indonesian government which complements the funds obtained from the tax sector. The main function of PNBP is to support national development and financing of public service activities.

PNBP itself functions the same as tax revenues, also listed in the State Revenue and Expenditure Budget (APBN), that the position of both as State Revenue. PNBP understanding and management are important in designing fiscal policies and state budgets to achieve economic and social development goals.

One of the contributions to PNBP comes from the government's share of the geothermal sector. In February 2024, the Ministry of Energy and Mineral Resources (ESDM) informed that the realization of Non-Tax State Revenue (PNBP) from the geothermal sector reached IDR 3.1 trillion in 2023.

In a written statement, Tuesday, August 20, Acting Director General of EBTKE Jisman P Hutajulu explained, this figure increased 34.8 percent when compared to the performance of the geothermal PNBP in 2022 of IDR 2.3 trillion. Please note, from 2019 to 2021, the realization of the geothermal PNBP was stagnant at IDR 1.9 trillion each year.

"It should be noted that this increase in revenue is in line with Indonesia's efforts to carry out the energy transition by utilizing new and renewable energy (EBT), including geothermal," added Jisman P Hutajulu.

If you look in more detail, the PNBP for the geothermal sector of IDR 3.1 trillion consists of fixed dues of IDR 0.04 trillion, royalties of IDR 0.1 trillion, and geothermal entrepreneurs of IDR 2.99 trillion. Not only that, PNBP was obtained from the Public Service Agency of the KEBTKE Survey and Testing Center amounting to IDR 88 billion.

Indonesia has several geothermal companies that play an important role in the development of geothermal energy, including PT Pertamina Geothermal Energy Tbk (PGEO), PT Medco Power Indonesia, PT Supreme Energy, PT Geo Dipa Energi, and PT Barito Renewables Energy Tbk (BREN). These companies not only focus on electricity production from geothermal resources, but also contribute to state revenues through PNBP payments and various related taxes.

BREN, which is the parent company of geothermal developer Star Energy Geothermal, part of the Barito Pacific Group, has a crucial role in Indonesia's geothermal sector and has made a major contribution to state revenues. If you look at the Company's audited financial statements throughout 2023, BREN has paid the government share (PNBP) of around IDR 2.7 trillion, accounting for about 90% of the geothermal PNBP.

Recently, Star Energy Geothermal was recognized for its achievements in paying taxes. Star Energy Geothermal group received several awards such as, Taxpayers with the Biggest Contribution in 2022 from the West Java I DJP Regional Office on March 20, 2023, the Best P5L P5L Taxpayer Award in 2023 from the West Java III DGT Regional Office on February 28, 2024, and the 2023 Biggest Contribution Taxpayer Award from the Special Jakarta DGT Regional Office on April 23, 2024.

In addition, BREN also won the Taxpayer Award with the Biggest Contribution in 2023 from the West Jakarta DGT Regional Office on June 25, 2024. This award underscores BREN's commitment to fulfilling its tax obligations and its contribution to state development.