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Investors Welcome Tax Amnesty Policy: OJK

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Editor

23 August 2016 08:20 WIB

TEMPO.CO, Jakarta - The Financial Service Authority (OJK) Commissioner Council chairman Muliaman D Hadad said prospective investors have welcomed the government’s tax amnesty policy.

“The investors have welcomed [the policy] and are confident,” he said, in his explanation on tax amnesty in a dissemination seminar titled “Indonesia Business Outlook” in Hong Kong, Monday, August 22, 2016.

Muliaman said that the tax amnesty program is the right measure taken by the government amid the economic slowdown.

“I think the policy issued [by the government] is very timely. Since 2014, Indonesia has also been affected by the global economic slowdown, hence Indonesia could only saw a growth of below five percent in 2015 or lower than the year before of six percent,” he said.

However, the new government has made a shift in policy by focusing on infrastructure development, started with incremental government spending, Muliaman added.

All emerging markets have seen a significant downturn, yet Indonesia had been able to maintain five percent growth, he said.

The government has recently issued the tax amnesty policy in a bid to collect funds stashed overseas by Indonesians, bearing in mind that the funds are needed to finance aggressive development spending.

“It has sparked investor confidence. It is evident in much stronger rupiah and the IHSG (the Indonesia Composite Index), and I think the IHSG has seen an 18 percent hike since January,” he added.

“Indonesia has seen a considerable development along with Thailand and the Philippines. Whereas Singapore and Malaysia keep getting sluggish and [have been] struggling, including in their capital markets which have not significantly improved,” he said.

The dissemination of the tax amnesty program in Hong Kong is the second one held abroad. Earlier, a similar event was held in Singapore.

ANTARA



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