The much-anticipated tax amnesty launched on June 28th has generated high expectations and has sent the Rupiah to new heights
Forecasts see an inflow of funds of around Rp 4,000 trillion (US$304 billion) and Rp 1,000 trillion in assets repatriated from overseas, by means of a pardon for past tax evasion coupled with low penalty charges, or redemption rates, that range from 2 to 10 percent during the amnesty period of July 1 to March 31, 2017.
Much of these repatriated funds will be invested in the real sector in the form of property, infrastructure developments, trade and manufacturing. It is expected that funds will primarily be repatriated from Singapore.
“The most important thing is that the capital inflows can be used to construct our outstanding infrastructure projects,” President Jokowi said, urging authorities to prepare instruments to accommodate the funds as soon as possible.
Public Works and Public Housing Minister Basuki Hadimuljono said his officials were working on a list of infrastructure projects that could be offered as destinations for such funds, including toll roads, drinking water systems and hydro-electric dams as projects that investors might find attractive.
To learn more and meet the players that shape the infrastructure industry, visit Concrete Show South East Asia in Jakarta during 14-16 September 2016. The leading business event and learning platform for the Concrete and Construction Industry in South East Asia – organized by UBM – gathers over 200 companies from 28 countries which share technology, insight and create real growth opportunities for Indonesia and the region.
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Owned by UBM plc listed on the London Stock Exchange, UBM Asia is the largest trade show organiser in Asia and the largest commercial organizer in China, India and Malaysia. Established with its headquarters in Hong Kong and subsidiary companies across Asia and in the US, UBM Asia has a strong global network of 31 offices and 1,300 staff in 24 major cities. We operate in 20 market sectors with 230 exhibitions and conferences, 21 trade publications, 18 online products for over 2,000,000 quality exhibitors, visitors, conference delegates, advertisers and subscribers from all over the world. www.ubmasia.com