The government allowed repatriation funds from tax amnesty program to be placed on gold bullion and properties. The implementing rules become the new catalyst that will boost the movement of Aneka Tambang Tbk (ANTM)’s share, producer of gold bullion, and property shares.
The technical regulations of PMK No 122 2016 mentioned that repatriation funds that was placed in a special account can be invested to the infrastructure projects, real sector, land and buildings property, direct investment in Indonesia, gold bullion, and other investments besides the financial markets in accordance with regulations. Taxpayer investment in gold bullion and property can also be used as collateral to obtain credit from the bank.
ANTM is potentially benefited by this policy because gold bullion that can be used as an investment must receive a certificate from the Indonesian National Standard (Standar Nasional Indonesia /SNI) or London Bullion Market Association (LBMA). Dimas Pramudito, the Finance Director of ANTM, said that the company’s target gold sales reached 11 tons this year. ANTM’s gold sales reached 5.3 tons by contributing 70% to the company’s revenue of 10.5 trillion IDR per June 2016.
In trading on Friday (12/8), ANTM’s share had strengthened by 0.6% to 780 IDR. CIMB Securities recommended Buy for ANTM with a target price of 805 IDR.
DBS Vickers Securities predicts that the implementation of automatic information standard exchange across the countries in 2017 will encourage taxpayers to report their assets abroad and repatriate some of their funds to Indonesia. This could potentially increase demand for property.
Ciptadana Sekuritas and Sinarmas Sekuritas recommended Buy for Bumi Serpong Damai Tbk (BSDE) share with a target price of 2.400 IDR. Ciptadana Sekuritas also recommended Buy for Summarecon Agung Tbk (SMRA) with a target price of 1.950 IDR. Maybank Kim Eng recommended Buy for Pakuwon Jati Tbk (PWON) with a target price of 730 IDR. (*)
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