Keep Watch For Us Tax Amnesty Plan: BKPM

Jakarta (Antara Bali) - Chief of the Investment Coordinating Board (BKPM) Thomas Lembong has stated Indonesia needs to keep watch for the US plan for a tax amnesty policy.

"That is an example of developments for which we need to keep watch.  Indonesia has been quite successful in implementing a tax amnesty program. The program is the most successful program in the world.  The advisory team of (the president-elect)  Donald Trump is considering the same thing, to create a tax amnesty program in the US,"  Thomas Lembong said during the DBS Asian Insight Conference 2016 held in Jakarta on Thursday.

If the US put in place a tax amnesty program, it would have an impact on the repatriation of funds to the US, he said.

"It is predicted (the tax amnesty program) will attract an estimated US$2 trillion. A huge amount of US funds is kept in Europe. If the program is created, there will be massive repatriation of funds from Europe to the US," he said.

On the other hand, Donald Trump's plan to expedite infrastructure development using the US state budget is expected to improve the US economy. As such, Indonesia will enjoy the positive impact of the policy.

"Once again, the program follows Mr Jokowi (Indonesian president)'s suit. If it improves the US economy, it will have a positive impact on us because it will encourage our exports to the US," he said.  
      
Having learned the potential impact of Donald Trump's policy, Thomas  Lembong said the BKPM decided not to revise its investment targets for this year and next year.  (WDY)