INDONESIA

Taxes on Power Generation Abolished: Indonesia has abolished luxury taxes and value-added taxes on all imported power generators and electrical transmission equipment, the Jakarta Post reported. Elimination of the taxes is in line with the Indonesian government’s 1991 policy of encouraging private power generation in this country of 180 million people, said Bacelius Ruru, a spokesman for Indonesia’s Finance Ministry. Indonesia, which experienced severe shortages of electrical power in 1991 and ‘92, is attempting to increase electrical capacity through construction of a series of natural gas-fired power plants on the island of Java. The country generates most of its electricity by burning coal and oil.