PT Daewoo Securities Indonesia predicts the approved Tax Amnesty Act will attract funds into various sectors of the economy, in particular the banking and consumer sectors. Banking liquidity will be increased so that banks can reduce the cost of funds while in the consumer sector, the flow of repatriation of funds will boost consumers’ purchasing power.
Dang Maulida, an analyst at PT Daewoo Securities Indonesia, said after the tax amnesty is effective, the repatriated funds will give a positive impact to the financial sector and the real sector. Repatriation of funds will go to the bank so that third party funds will go up and the bank could distribute it as a credit. The increase in liquidity could also reduce cost of funds of banks. Tax amnesty will also impact on improving people’s purchasing power and the catalyst for the consumer sector. “The consumer sector stock has been increasing since the economic recovery in the fourth quarter of 2015. Consumer shares rose 11.1% year to date, higher than the 5.3% of JCI,” said Dang Maulida.
In the past week, the stock index of financial sector and the consumer sector stock index rose more than the Composite Stock Price Index (JCI). Financial sector index rose 1.92% to a level of 860 while the consumer sector stock index rose 2.49% to a level of 422. As for JCI in the past week rose 1.04% to a level of 4,980 points. (*)
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