Bank Mandiri Offers Investment Products To Mobilize Repatriated Funds

Denpasar (Antara Bali) - The Bali branch of publicly traded state lender Bank Mandiri is offering investment products to mobilize repatriated funds expected to flow into the country as a result of the tax amnesty policy of the government.

"There are a number of investment products we are planning to offer as an alternative to investing abroad. Certainly the products have more attractive return," Regional Chief Executive Officer of  Bank Mandiri for Bali and Nusa Tenggara, Maswar Purnama said here on Monday.

The government has announced tax amnesty which is expected to prompt Indonesians having funds parked abroad to repatriate their money into Indonesia.

"At least the interest rates are twice higher on funds invested in the country than on those invested abroad," Maswar said.

He said the interest rate on deposit in the country is around six to seven percent a year as against only 0.25 percent abroad, adding the products could be in the forms of bonds, sharia bonds, and deposits.

He said the expected inflows of repatriated funds into the country would contribute to increasing the state income, and local banks would gain from investment and increase in third party funds.

"Third party funds would rise , other income would including fee based income also increase," he said.

However, there has been no repatriated funds invested in the state lender, although there are already many inquiries about the tax amnesty program from business leaders who may have funds parked abroad, he said.

"There are around 20 business leaders coming to the bank to ask more details about tax amnesty program," he said.

The two business leaders included those having companies operating in the tourism area, contractors and travel agents.(WDY)