Financial Market Responds Positively to Tax Amnesty Program: DBS
13 August 2016 15:40 WIB
TEMPO.CO, Jakarta - Indonesia's financial market responds positively to the tax amnesty program that began on 18 July 2016, according to a study conducted by DBS Group Research.
It also said that the main indication can be seen from the continuing drop of yields of the Indonesian government's bonds.
"Since early 2016, the average yields of the Indonesian government's bonds dropped by 170 basis points," the research says.
According to DBS Group Research, this phenomenon is influenced by a number of factors, including the low global interest rate and the expectation on the possibility of the drop of Bank Indonesia interest rate.
The combination of those factors have made the government's bonds more attractive, it added.
DBS Group Research also said that market players shared the government's optimism.
"It's obvious. Rp 1 trillion equels to 150 percent of the number of foreing investors in the government's bonds," a DBS Group Research representative says.
However, at the same time, DBS Group Research says that theris a worry about the government's assumption that tends to be too ambitious which is feared to meet barriers.
EGI ADYATAMA