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60% of Repatriation Funds Will Go to Property Sector

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Editor

24 July 2016 11:42 WIB

TEMPO/Aditia Noviansyah

TEMPO.CO, Jakarta - Around 60 percent of repatriation of funds from the tax amnesty program is expected to be invested into the property sector.

Executive Director of Indonesia Property Watch Ali Tranghanda said the inclusion of repatriation of funds would provide a strong psychological boost for investors to invest in the property sector.

"Why the property is a top priority? The funds that enter the country will have to stay for at least three years. The property sector as a long-term investment will become a main option to increase property values. The property sector as a locomotive of the economy should be the government's attention," Ali said on Saturday (23/7).

Ali added that repatriation funds that will flow into the property sector will go first through banks or direct purchases.

It is estimated that the direct property purchase funds will provide additional property market capitalization of up to Rp 180 trillion.

"So the estimate of the total market capitalization is around Rp 380 trillion," he added.

ANGELINA ANJAR SAWITRI


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