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Value of overseas assets may be less than predicted: Kadin
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Former spy chief AM Hendropriyono files for the tax amnesty at the Sudirman tax office in Jakarta on Sept. 21. (JP/Reza Zafiruddin)
T
he Indonesian Chamber of Commerce and Industry (Kadin) predicts revenue from the tax amnesty program will reach only Rp 60 trillion (US$4.59 billion), less than half of the government’s Rp 165 trillion target, as it claims many of the assets held overseas are leveraged.
Former finance minister Bambang Permadi Soemantri Brodjonegoro previously said the value of Indonesian taxpayer funds parked abroad reached Rp 11.4 quadrillion, a total based on the calculation of foreign assets owned by wealthy Indonesian businesspeople since the 1970s. The government then used this data to come up with the Rp 165 trillion figure.
“Pak Bambang probably calculated it from the total assets in the balance sheet, but he could not access the detailed data. Not all of that number is real money, because debt was already included in the total assets calculation,” Kadin trade department deputy head Benny Soetrisno said at the Kadin office on Friday.
Previously on Thursday, Bank Indonesia also made a similar prediction, calculating that income from fees would reach only Rp 54 trillion. Central bank Governor Agus Martowardojo said his office had estimated repatriated assets would only reach Rp 180 trillion, instead of the government’s Rp 1 quadrillion target.
“We based our model on current inflows. But if income fees can reach Rp 180 trillion, our economy can grow by 5.1 percent next year,” Agus said during the press conference.
As of Sept. 22, income fees stood at Rp 36.28 trillion, based on tax office data. Declared assets reached Rp 1.46 quadrillion, of which 66.89 percent were domestic declarations. Government data shows that 119,281 taxpayers had joined the program as of Thursday. (evi)
