Indonesia Composite Index (ICI) is predicted to go beyond 5.600 points until the end of this year. The tax amnesty program and the improvement of macro-economic conditions will strengthen the flow of foreign funds into the Indonesia Stock Exchange (ISX).
Ridwan Soetedja, the President Director of CIMB Principal Asset Management (CPAM), said that foreign investors were still posting net buy in BEI because they saw a positive impact of tax amnesty policy to the Indonesian economy. The company predicted that IHSG could reach 5.600 according to the estimated public company’s performance this year. “IHSG prediction of 5.600 has not yet considered the tax amnesty, which means that it could be higher,” said Ridwan.
Until last weekend, the flow of foreign funds to BEI reached 36.8 trillion IDR. IHSG Return reached 18% since the beginning of the year. Ridwan says the realization of repatriation funds and tax revenue from tax amnesty is still far from the government’s target. This has caused the administrative process of filling tax amnesty to take more time.
CPAM, which is indicated to be one of the gateways, is targeting an asset under management (AUM) of 6.3 trillion IDR this year. The target rose by 18.4% compared to last year’s 5.3 trillion IDR. According to Ridwan, the company has not been planning to publish Mutual Fund Limited (Reksa Dana Penyertaan Terbatas/ RDPT) and Real Estate Investment Trusts (Dana Investasi Real Estate/ DIRE) to collect the repatriation funds. CPAM will offer products of mutual funds and Fund Management Contract (Kontrak Pengelolaan Dana/ KPD) to taxpayers who would like to invest the repatriation funds. (*)
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