PT Mandiri Manajemen Investasi, an investment management company with assets under management (AUM) worth Rp 35 trillion does not target AUM from tax amnesty program’s repatriated funds. The company is not too optimistic about taxpayers instantly transferring their overseas assets to Indonesia because they will need to make adjustments to their investment risk characteristics. In addition, certain regulations of the Financial Services Authority (FSA) need to be relaxed for several new products being prepared to accommodate repatriation of funds.
Muhammad Hanif, President Director of Mandiri Investasi, said in socializing and educating taxpayers, that the company was asked more concerning the tax amnesty mechanism. “We do not know how big the repatriation is. Taxpayers agreed on tax amnesty but repatriation depends on respective risk characteristics,” Hanif said on Tuesday (7/26). If there are incoming repatriated funds, Mandiri Investasi will offer low-risk products, such as mutual funds with government bonds as underlying assets or money market instruments.
Hanif added that FSA needs to relax its regulation on private equity fund to expedite or draw inflows of repatriated funds from tax amnesty to that instrument. “If possible, regulations should be loosened so that funds may be placed in non-listed securities from affiliated companies. Private equity funds backed by SOE projects are also attractive but socialization and preparation is rather long because it needs due diligence and site visit,” Hanif explained.
Mandiri Investasi has one private equity fund with renewable energy project as an underlying asset which could accommodate repatriated funds with estimated AUM between Rp 400 billion and Rp 500 billion. As of the end of 2016, the company aims total AUM to grow 43% to Rp 40 trillion in contrast to 2015 year-end position of Rp 28 trillion. (*)
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