A number of conglomerates participation in tax amnesty program has the potential to encourage the repatriation fund to 250 trillion IDR-300 trillion IDR. Indonesian Chamber of Commerce and Industry (Kadin Indonesia) stated that large conglomerates is consolidating their assets and will report to Directorate General of Taxation by the end of September.
James Riady, the CEO of Lippo Group, joined the tax amnesty program last weekend. James Riady’s action is being followed by Sofyan Wanandi (Gemala Group), Dato Tahir (Mayapada Group), and Anindya Bakrie (Bakrie Group).
BCA Sekuritas considered that the repatriation funds from the conglomerates will encourage demand, increase the consumers, and increase the direct investment growth. The flow of repatriation fund is also going to strengthen rupiah exchange rate to 13.000 IDR/ US$.
Until 5th September 2016, the declaration of taxpayers property in tax amnesty program reached 205 trillion IDR with a repatriation fund of 12,7 trillion IDR. Meanwhile, the compensation tax value reached 4,36 trillion IDR or by 2,6% from the acquired compensation with a target price of 165 trillion IDR. (*)
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