BKPM chief Franky Sibarani said that to invest the tax amnesty funds in the real sector, taxpayers could choose one of two ways the board had prepared. First, they could create a new company or second, they could place them in an equity structure.

After declaring his or her assets and paying the minimal penalty fees, Franky said, a taxpayer would get three months to decide where they wanted to place the money. The money could also be placed in their own domestic business, he further said.

The BKPM chief claimed some taxpayers had discussed their intention to create new businesses in Indonesia with the board’s officials.

“If it happens, we will prioritize it into nine sectors where they can have tax allowances and tax holidays. A three-hour investment license service and a green line export service will also be provided for them,” he said at his office on Tuesday.

However, Franky predicted there would be only a few taxpayers interested in placing their money in a new business. Instead, most of them would likely choose to make an equity placement in existing companies, he added.

Echoing Franky’s opinion, Indonesian Stock Exchange (IDX) president director Tito Sulistio said taxpayers would be eager to place money in their own companies; however, it was likely that they would rather place it in companies that had already gone public under a stock market mechanism.

“If they go through the stock market, the process will be simpler and safer because it goes through the custody and clearing house,” Tito told thejakartapost.com at the IDX building in Jakarta on Tuesday. (ebf)

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