The repatriation fund flow to property sector is expected to reach IDR 70-80 trillion if the total repatriation reaches IDR 150 trillion by March 2017. It will give multiplier effect to 174 industries related to property sector.
Ali Tranghanda, Chief Executive Officer Indonesia Property Watch, said that the tax amnesty (TA) improved significantly after several conglomerates and big developers, like James Riady (Lippo Group), Murdaya Poo (Metropolitan Kentjana), and Tommy Soeharto (Bali Pecatu Graha, Buana Pacific International) joined it. The repatriation fund has reached IDR 70 trillion and plus a fine of IDR 2 trillion so the repatriation
could reach IDR 150 trillion until March 2017, 60% will go to property.
The positive sentiment to property sector is supported by Regulation of the Minister of Finance No. 122/ 2016 which stated the repatriation fund could be invested to property, land, and building. The fund will go through the direct purchases or be invested to property. Ali said that several banks that became gateway had approached the developers to prepare bulk sales.
Budi Yanto Lusli, the President Director of Synthesis Development, said that the direct purchases from taxpayer repatriated funds will improve the property market capitalization and settle by minimum 3 years. Synthesis predicts the fund to boost the sales by 50% to IDR 2.25 trillion by 2017. The company is targeting IDR 1.5 trillion this year and has reached IDR 1 trillion by this September. (*)
Add Comment