TEMPO.CO, Jakarta - The government has planned to use non-tradeable bonds as an instrument to facilitate repatriation fund in the tax amnesty program. Finance Minister Bambang Brodjonegoro revealed on Saturday, February 13, 2016, that the government bonds would be used with a holding period of one year.

Despite of their non-tradeable nature, Bambang said that the yield to be used would be based on the market. Bambang ensured that there would be no extra bonds to be issued other than those set in the 2016 State Budget.

Earlier, Mandiri Institute executive director Destry Damayanti viewed that non-tradeable government bonds should be used as an instrument in the tax amnesty program. Destry added that tradeable government bonds would create a competition risk with regular investors and disrupt the market system.

Destry believes that the rupiah-denominated bonds would still be attractive to investors. With a 7.5-percent yield, Destry added, the government bonds would be competitive enough with interest rate of 0.25% overseas. Destri explained that rupiah was still undervalued, so that there was a possibility of appreciation despite being limited.

Destry projected that the rupiah exchange against the US dollar would improve if it was supported with stable economy and growth story. With a gross national product rate at 5.04 percent in the fourth quarter of 2015, Destry estimated that the Indonesia’s GNP growth would be somewhere between 5 percent and 5.3 percent this year.

BISNIS.COM