The 95% of repatriation fund or around IDR 132 trillion is placed on banking products. It is expected to be in capital market instruments, like stock and Fund Management Contract in the next 1-2 months.
Nurhaida, Chief Executive in Capital Market Supervisor from Financial Services Authority (FSA), said most of the fund was placed on banking which is the most convenient gateway to be encountered by taxpayers. “Around 90%-95% of the fund is in the gateway. Besides banking, some funds are going into Limited Partnership Mutual Funds with value of below IDR 100 billion,” said Nurhaida.
The repatriation fund is also predicted to go into Fund Management Contract product because it is more flexible. The government set up a number of rules to facilitate the inflow of funds to capital market products, such as Government Regulation about tax provision in Real Estate Investment Trusts (REITS) issuance.
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