TEMPO.CO, Jakarta-The Indonesia Stock Exchange (IDX) is setting up a number of investment instruments to accommodate the funds repatriated through the Tax Amnesty Law.
In a hearing with the House of Representatives' Finance Commission yesterday, IDX president director Tito Sulistio said the bourse will use mutual funds asset backed securities, and private equity funds to absorb the returned funds.
The Tax Amnesty draft suggests placing repatriated funds in two instruments, bonds and bank deposits. Tito said, placing the repatriated assets in capital market instruments is a more effective option, because the amount of funds disbursed can be larger, and the disbursement process can be faster.
The Indonesia Stock Exchange (IDX) is suggesting assets repatriated using the tax amnesty program to be placed in long-term instruments, including stocks and mutual funds. To prevent the funds from being withdrawn, IDX also suggests locking up the funds for up to five years. Other instruments suggested to absorb the returned assets are bank savings and deposits, bonds, KIK funds, REIT, asset-backed KIK, and private equities.
Tito said that private equity funds (RDPT) will be the flagship instrument for this purpose, as it can be directly disbursed to the real sector.
Earlier, Bank Indonesia governor Agus Martowardojo estimated that the potential amount of Indonesians' money currently placed overseas that can be returned is Rp560 trillion. BI also calculates that the state can obtain an additional tax revenue of Rp47.5 trillion.
The estimate is based on the calculations by the Global Financial Integrity 2015, which said that the amount of Indonesians' assets placed in tax havens reached Rp3,147 trillion. The state can only repatriate some 60 percent if those funds, because the other 40 percent is suspected to have come from crime-related activities.
GHOIDA RAHMAH | SINGGIH SOARES
