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BKPM Yet to Prepare Incentives for Tax Pardon Participants

The Investment Coordinating Board (BKPM) has yet to prepare any special incentives for tax amnesty participants despite the fact that repatriated assets are expected to be invested in the real sector and boost the economy.

BKPM chairman Thomas Trikasih Lembong said the institution still had enough time to review the urgency of additional incentives for tax amnesty participants.

“Tax amnesty participants will place their money in financial instruments first, then after one or two years they will start to invest in the real sector. So, we have much time to think about what kind of investments they will need,” he told The Jakarta Post in his office on Tuesday.

Financial Services Authority (OJK) commissioner Nurhaida agreed that real-sector investment related to the tax amnesty program would not be an immediate issue. Up until now, no investment application has been submitted related to the tax amnesty.

“The taxpayers will wait-and-see for at least one year before shifting into investing in the real sector. The focus is to provide as many financial instruments as possible first, and then we’ll see what the investors need,” she told the Post at the Indonesia Stock Exchange (IDX) building.

The Directorate General of Taxation secured support from the OJK and IDX on Tuesday in the form of discounted listing fees for tax amnesty participants, and an easing of tender offer rules.

Source: The Jakarta Post