Vice President of Research and Analysis Valbury Asia Securities Nico Omer Jonckheere said the tax amnesty program has continued to contribute to the income of the government income until December, the last month of its second phase.
The tax amnesty program is divided into three phases. The first phase was from July to September with redemption rate of 2 percent, the second phase from October to December , 2016 with a redemption of 3 percent and the last phase from January to March 2017 with redemption of 5 percent.
Until Tuesday, the government earned Rp100 trillion in tax penalty up from Rp97.2 trillion in the first phase.
Assets declared totaled Rp4,000 trillion Rp144 trillion in repatriated funds from abroad.
More tax payers are expected to take part in the program toward the end of this month when the penalty rate is still low.
The tax penalty and repatriated funds are expected to help the government in financing its ambitious infrastructure projects and to boost economic growth, Nico said.
"The success of the tax amnesty program would strengthen the confidence of the market players in the countrys economy, he added.
The program has been billed the most successful ever adopted by a number of countries so far in the world.
However, the domestic sentiment could be eliminated by external sentiment which is focused on the decision to be taken by The Fed on its fund rate, Nico said.
The market could be jolted by uncertainty ahead of the meeting of The Fed, he said, until the FED made its decision, the IHSG is expected to be flat .
Mandiri Sekuritas analyst Hadiyansyah said in entering December, IHSG could surge in short term.
"Technically , the IHSG is already entering the short term rising trend potentially reaching the level of 5,380-5,450 points," Haiyansyah said.
Regional markets such as Hang Seng and Straits Times recorded gain but Nikkei index fell.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
