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The House of Representatives passed the new Geothermal Resources Act ("2014 Act") on 26 August 2014. The 2014 Act, which is of immediate effect, gives an important boost to the geothermal energy industry as it provides that pricing will henceforth be based on economic cost, something that is of utmost importance in an industry where upfront costs can be enormous. In addition, it significantly liberalises the rules regulating the development of geothermal power projects, in particular by no longer classifying geothermal energy exploitation as a form of "mining", thus exempting it from the restrictive rules governing mining in designated forest areas. This is in marked contrast to the legislation it repeals and replaces - the Geothermal Energy Act 2003 - which specifically characterised geothermal energy exploitation as mining. The new legislation also places all authority in respect of the licensing of geothermal resources for power generation purposes in the hands of the central government, whereas previously it was shared with local government.
As part of the ongoing rollout of a computerized permit application system at the Investment Coordinating Board ("BKPM"), the BKPM now requires every client company to create its own company folders at the BKPM website to accommodate its corporate, licensing and other relevant documents. The project is intended to facilitate paperless transactions between the BPKM and its clients, and accelerate the overall investment licensing process.
Introduced in 1 September 2014, the company folder requirement applies to both domestic and foreign direct investment companies that are registered with the BKPM. Commencing 1 October 2014, the BKPM will no longer accept manual applications, filings or submissions if the client company has not created a company folder and uploaded its corporate and licensing documents onto the online filing system, known as Sistem Pelayanan Informasi dan Perizinan Investasi Secara Elekronik ("SPIPISE") (or National Single Window for Investment ("Online NSWi"). To access the website, please click here.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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