Indonesian agency to prepare investment scheme under tax amnesty policy

Indonesian agency to prepare investment scheme under tax amnesty policy

Franky Sibarani. (ANTARA/Widodo S. Jusuf)

The scheme is expected to help the government reach its investment target of Rp594.8 trillion this year."
Jakarta (ANTARA News) - The Indonesia Capital Investment Coordinating Board (BKPM) said it has prepared an investment scheme to accommodate funds repatriated after the tax amnesty policy.

Head of BKPM Franky Sibarani said here on Saturday the tax amnesty offered by the government is expected to encourage repatriation of funds parked abroad by rich Indonesians.

The funds are needed to help finance economic development and improve domestic financial liquidity amid the global slump, Franky said.

Last month the House of Representative approved and passed a tax amnesty bill into law, which is expected to result in repatriation of big funds parked abroad to evade tax.

"BKPM has a role in accelerating investment by preparing investment scheme for those wanting to use their funds for direct investment," he said.

He said the scheme includes giving information on investment procedure and facilities entitled to investors in Indonesia.

"BKPM will propose investment procedure in the real sector based on the governments priority scheme and other forms of investment in line with the law," he said.

He said he was confident that the investment scheme would attract those utilizing the tax amnesty policy to invest in Indonesia.

"The scheme is expected to help the government reach its investment target of Rp594.8 trillion this year," he said.

The plan is to combine the investment scheme with a number of other initiatives to simplify investment license such as three-hour investment service, import duty facility, green track acceleration, tax allowance and tax holiday," he said.

"The combination of the incentives is expected to have significant strength in attracting the interest of those utilizing the tax amnesty policy," he added.

The tax amnesty law guarantees the fund owners protection from being charged with tax fraud and releases from obligation to settle unpaid tax so far.

The fund owners are required only to pay a certain redemption and to be transparent with their taxable assets.
(Uu.H-ASG/F001)

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