It has been a few months since Indonesian investors were waiting for one thing : that the government passes the tax amnesty bill. It now has officially been done since 16 July 2016 : each Indonesian national can repatriate their offshore funds in exchange of a tax varying between 2% and 5%.
Collateral benefits of the tax amnesty
The tax amnesty wasn’t announced alone because other measurements must complement this law. In fact, the Indonesian Central Bank has already explained that the access to the credit will be easier in the following month and the Rupiah will still gain ground on dollars. So two good news to invest in property. Lastly, the Indonesian government will implement new policies to spur different sectors including real estates.
Some interesting prospects about Property
Thanks to the tax amnesty, the Indonesian Central bank expects to repatriate around 42 billion dollars. Regardings the property sector, numerous pundits estimated the tax amnesty could boost the high-end property market by 5-10 percent next year, while Tulus Santoso Brotosiswojo, a director at PT Ciputra Development Tbk, expects at least 20 percent of the repatriated funds to be invested in the overall property sector. Residential sales should rise by around 10 percent this year as a result of the tax reprieve, mortgage rule, and easier credit conditions, said Anthony Yunus, a property analyst at Nomura Holdings Inc. in Jakarta.