Jakarta (ANTARA News) - Indonesia Bond Pricing Agency (IBPA) predicted the countrys bond market would be brisker with the tax amnesty policy.

"Tax amnesty would bring on significant effect on the bond market in the country as a result of expected repatriation of big funds into the country," IBPA director Wahyu Trenggono said here on Thursday.

The house of Representatives approved and passed tax amnesty bill into law last month, expected to trigger large repatriation of funds of many rich Indonesians parked so far abroad. t

Wahyu said investors would look for investment instruments,such as bonds which give good yield with less risk.

"After the Brexit sentiment, the bond yield continued to decline to 7.6 percent and when the tax amnesty law was approved the yield was 7.2 percent," he said.

The decline in bond yield shows the better confidence of the market, he added.

"This shows that both foreign and domestic investors see the tax amnesty policy has positive impact and the sentiment would last quite long," he said.

He said IBPA predicted that bond issues in 2016 would reach Rp70 trillion.

So far this year, there are 28 bonds including Sharia bonds valued at Rp43.8 trillion issued by 23 issuers, he said.

Earlier before tax amnesty , corporate bonds were already on the rising trend , he said.

Meanwhile, Group Managing Director of PT Reliance Capital Management Jurgan Usman said the company plans to issue bond valued at Rp150 billion to raise fund for working capital.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2016