TEMPO.CO, Jakarta - State-owned Bank Rakyat Indonesia (BRI) will issue corporate bonds and medium term notes (MTN) with a total value of Rp 25 trillion to absorb the tax amnesty proceeds.
BRI finance director Haru Koesmahargyo said that the bonds issued are worth Rp20 trillion while the MTNs are worth Rp5 trillion. The bonds will be issued in the second half of this year and n the first quarter next year.
"We're not sure on when the MTNs will be issued, we'll see," Haru said in Medan on Thusrday, July 21, 2016, Bisnis Indonesia reported.
BRI president director Asmawi Syam said the bank is also preparing other instruments like deposits and unit-linked products to take up funds repatriated using the tax amnesty program.
"We can also channel [the funds] to other instruments through Bahana Sekuritas," Asmawi said.
Asmawi said the repatriated funds can also be invested in SOE banks, but the funds must go through gateway banks, in this case state-banks.
Banks, he said, can facilitate taxpayers to invest in greenfield and brownfield projects like those carried by PLN, toll road constructions, or other infrastructure works being done by SOEs.
