Ciputra joins Indonesia’s tax amnesty program as of yesterday. Owning some of the leading development companies in the country, Ciputra is known as Indonesia’s 23rd richest man – and it seems he will keep his wealth in Indonesia.
The tax amnesty program is designed to bring funds back into Indonesia. The government will apply a 2-5 percent tax for assets brought back onshore by March 2017. Assets brought back will be kept in Indonesia for three years in funds managed by appointed banks. The funds are allowed to be invested in the country’s stocks, bonds and mutual funds issued by private companies and for the direct purchase of properties.
Ciputra supports the tax amnesty saying, “This is a really good program from the government to stimulate the economy. You can see the rupiah is strengthening and stock prices are going up…. People can buy property without worry after following this program…”
According to Bank Indonesia, the exchange rate between the rupiah and the US dollar moved to rupiah 12,000 per dollar in the past two days and it closed at rupiah 12,926 per dollar yesterday, September 28th.
The amnesty has fueled controversy across the region, but with such big players like Ciputra joining in and supporting it, we are interested to see how the new incentive unfolds.
