"We hope that state companies could absorb Rp200 trillion to Rp300 trillion of the repatriated fund in various types of instrument," Rini said.Jakarta (ANTARA News) - Minister for State Enterprises Rini Soemarno said a number of state companies (BUMN) could make use of up to Rp300 trillion of funds expected to be repatriated as a result of the tax amnesty policy.
"We hope that state companies could absorb Rp200 trillion to Rp300 trillion of the repatriated fund in various types of instrument," Rini said after a coordinating meeting on tax amnesty at the office of the Coordinating Minister for Economy here on Wednesday.
She said currently 25 state companies are ready to use repatriated fund as a result of the tax amnesty policy until March 2017.
She said a number of instruments could be prepared by state companies to mobilize the funds including bonds in U.S. dollar or rupiah denomination, asset securitization, initial public offering (IPO), and projects under construction and placement in state banks.
"There are also a number of subsidiaries of state companies to launch IPO such as Tugu Pratama Asuransi of oil and gas company PT Pertamina and HK Realty of construction company Hutama Karya," she said.
Among the state companies expressing interest in using the repatriated funds through bond sales include PT Pertamina, holding company for fertilizer producers Pupuk Indonesia Holding Company, construction company PT Jasa Marga Tbk, construction company PT Waskita Karya Tbk and electricity company PT PLN.
There are also a number of state companies currently having projects under construction that could use the funds although they already have financial backup, she said.
She cited construction of the Malang-Pandaan toll road , which has been completed, but the state company that built the project could use more funds to finance other toll road projects.
"In principle, we want to open an opportunity for investors who utilize the tax amnesty or those planning to bring home their funds," she said.
In addition, the owners of the funds could also invest in state companies operating in agricultural sector such as horticulture sub-sector, she said.
Earlier, Finance Minister Bambang Brodjonegoro said Indonesians had Rp4,000 trillion in funds parked abroad and at least Rp1,000 trillion of the funds were expected to be repatriated by the owners as a result of the tax amnesty policy.(*)