Pertaining to renewable energy and power plants, stipulates that import duty exemptions are valid for machinery and capital for renewable energy and for capital goods required for public electricity supply (on- and off-grid). Value Added Tax (VAT) exemptions apply to taxable goods imported to develop renewable energy projects, as long as no substitutes are manufactured in Indonesia. The VAT exemption applies to machinery (both constructed and dismantled); while tax may still be raised on spare parts that companies need to use renewable energy for end-product manufacturing.