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How Does PERMENHUT 28/2025 Structure Non-Tax Revenue for Geothermal Activities in Conservation Areas?

Indonesia's new geothermal levy framework for conservation zones mandates tiered payments for biodiversity and carbon offsets.
How Does PERMENHUT 28/2025 Structure Non-Tax Revenue for Geothermal Activities in Conservation Areas?

1.0 Regulatory Foundation

PERMENHUT 28/2025 establishes a fiscal framework for non-tax state revenue (PNBP) derived from geothermal energy utilization in protected areas, including national parks (TN), nature reserves (TWA), and grand forest parks (Tahura). Enacted amid Indonesia’s renewable energy push, the regulation balances economic development with conservation by monetizing environmental services.

Key Definitions (Pasal 1):

TermNational Park (TN)
Indonesian TermTaman Nasional
Definition (Translated)Protected ecosystem managed through zoning for research, education, and sustainable use.
Pasal 1(1)
TermNature Reserve (TWA)
Indonesian TermTaman Wisata Alam
Definition (Translated)Protected area prioritized for nature tourism and ecosystem services.
Pasal 1(2)
TermGrand Forest Park
Indonesian TermTaman Hutan Raya (Tahura)
Definition (Translated)Managed collection of flora/fauna for conservation and public benefit.
Pasal 1(3)
TermPNBP
Indonesian TermPenerimaan Negara Bukan Pajak
Definition (Translated)Non-tax revenue from state-provided services or resource utilization.
Pasal 1(4)
TermGeothermal Permit
Indonesian TermPB-PJLPB
Definition (Translated)Business license for geothermal energy utilization in conservation zones.
Pasal 1(5)

2.0 Core Framework

The regulation introduces a tiered levy system for geothermal operators in conservation areas, calculated annually based on the project’s hectareage (L) and predefined environmental values (A, B1, B2, B3).

Matrix 2.1: Levy Calculation Formulas

Levy TypeYear 1
Formula(L × A) + (L × B1) + (L × B2) + (L × B3)
Pasal 3(3)
Levy TypeYear 2 and Subsequent Years
Formula(L × A) + (L × B1) + (L × B2)
Pasal 3(4)

Matrix 2.2: Environmental Value Rates (Lampiran)

ComponentBiodiversity (A)
Rate (Rp/ha/year)9,600,000
NotesReflects ecosystem conservation costs.
ComponentWater Regulation (B1)
Rate (Rp/ha/year)106,000
NotesAccounts for watershed protection services.
ComponentCarbon Sequestration (B2)
Rate (Rp/ha/year)320,000
NotesIncentivizes avoided carbon emissions through forest preservation.
ComponentCarbon Offsetting (B3)
Rate (Rp/ha/year)320,000
NotesApplies only in Year 1 for emissions from initial project activities.

Analysis of Pasal 3(1):
"Pungutan atas kegiatan PB-PJLPB tahap eksploitasi dan pemanfaatan meliputi: a. Pungutan PB-PJLPB tahap eksploitasi dan pemanfaatan tahun pertama; dan b. Pungutan PB-PJLPB tahap eksploitasi dan pemanfaatan tahun kedua dan seterusnya."
Translation: The levy for geothermal operations includes: (a) Year 1 payments; and (b) annual payments from Year 2 onward. This structure ensures upfront compensation for initial environmental impacts while reducing long-term compliance costs.

3.0 Implementation Requirements

Operators must:
1. Calculate annual levies based on verified project area (L) and Lampiran rates.
2. Submit payments to the Ministry of Forestry via PNBP mechanisms.
3. Existing permits (pre-2025) must adopt the new tariff structure immediately (Pasal 5).

Implementation Timeline

MilestoneRegulation Effective Date
Deadline/Requirement22 December 2025 (Pasal 6)
MilestoneExisting Permit Compliance
Deadline/RequirementImmediate application of 2025 tariffs
MilestoneAnnual Levy Reporting
Deadline/RequirementAlign with fiscal year cycles (January–December)

4.0 Enforcement & Sanctions

While the regulation does not specify penalties, non-compliance may trigger:
- Administrative sanctions under Law No. 28/2009 on PNBP.
- Permit revocation for repeated failures to pay levies.

5.0 Implications & Outlook

Stakeholder Impact:
- Geothermal Operators: Face increased operational costs but gain regulatory certainty.
- Government: Enhanced revenue streams for conservation area management.
- Environment: Incentivizes low-carbon practices in sensitive ecosystems.

Key Compliance Takeaways:
1. Accurate hectareage reporting is critical to avoid underpayment risks.
2. Proactive engagement with the Ministry of Forestry is advised to clarify valuation methodologies.

Official Source

View the full regulation at https://peraturan.bpk.go.id/.
Citation: Peraturan Menteri Kehutanan Nomor 28 Tahun 2025 tentang Besaran Nilai A, Nilai B1, Nilai B2, dan Nilai B3 pada Penerimaan Negara Bukan Pajak Pungutan Atas Kegiatan Perizinan Berusaha Pemanfaatan Jasa Lingkungan Panas Bumi Tahap Eksloitasi dan Pemanfaatan pada Kawasan Konservasi.


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Law Database

Access PERMENHUT 28/2025 in the CRPG Law Database: PERMENHUT 28/2025