The energy transition towards Net Zero Emission requires a very substantial capital expenditure (CAPEX) investment. Understanding this challenge, the Indonesian government, along with international partners, continues to design incentive schemes to ease the burden on investors. For EPC (Engineering, Procurement, and Construction) companies and energy project developers, this is a crucial moment to optimize the procurement of vital infrastructure, such as filtration systems, by utilizing Tax Holiday facilities.
This article will dissect how you can align your project's technical procurement needs with the latest tax incentive regulations in 2026.
Golden Opportunity: Perform-II Project and List of Pioneer Industries
One of the main catalysts for green investment this year is the continuation of energy transition initiatives. Search queries at the executive level show high interest in specific regulations, such as Perform-II project Indonesia energy transition tax incentives (BMZ 2026.2107.6).
Based on regulations related to Indonesia tax holiday pioneer industries, the renewable energy (geothermal, solar, wind) sector is explicitly included in the list of pioneer industries eligible for up to 100% reduction in Corporate Income Tax (PPh Badan). However, this incentive is not granted automatically; your project must demonstrate the use of efficient, environmentally friendly technology that supports long-term operational sustainability.
The Critical Role of Filtration & Automation Systems in Green Energy Projects
Why is the procurement of equipment such as filtration systems highly relevant to claiming a Tax Holiday? The answer lies in efficiency.
In Geothermal projects, for example, high-level filtration systems are essential for filtering brine (hot saltwater) to prevent scaling and turbine damage. The use of internationally certified infrastructure such as Twin Pod or Filter Press proves to government auditors that your project is built to high reliability standards (minimizing the risk of downtime and operational waste).
In addition to mechanical hardware, these systems also require precise control. The integration of automation systems using industry-standard components, such as Wago Modul 750-362 (Rp7,800,000) available in our catalog, ensures that the filtration process can be monitored in real-time. This operational efficiency data will then serve as strong attachments in your Sustainability Report and tax claim audit.
Strategies for Converting Incentives into CAPEX Savings
To ensure your filtration system procurement qualifies for fiscal incentives, implement the following three strategies:
Select Equipment Specifications that Support Energy Efficiency: Ensure that the heavy equipment or filtration systems purchased have specifications proven to cut secondary energy consumption.
Pay Attention to TKDN Compliance: Integrate high-quality imported components with assembly or supporting components from local vendors. The use of electrical components or supporting heavy equipment for installation, such as Enerpac RD 93 (Rp22,000,000) hydraulic cylinders from the ID Industri network, managed through local entities can help optimize cost structure and regulatory compliance.
Transparent Procurement Documentation: Claiming a Tax Holiday under the Perform-II Project scheme requires a clear audit trail. Ensure every purchase has a certificate of authenticity (such as DNV 2.7-1 for frames) and a valid tax invoice.
ID Industri: Your Procurement Partner for Energy Transition Projects
Managing a Tax Holiday while searching for credible equipment vendors can be very time-consuming. ID Industri is present as a B2B ecosystem that bridges your technical and regulatory needs.
From high-precision drilling accessories like various variants of Bit Breaker for Tri Cone Bit, to filtration automation modules, our entire directory is filled with verified suppliers ready to support your pioneer industry project timeline.
Don't let billions of rupiah in incentives expire due to hardware procurement strategy errors. Explore the ID Industri catalog today and ensure your renewable energy project in 2026 is not only green but also financially profitable.