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Hashim pitches housing bonds to lure overseas funds
The Kadin advisory board chair has proposed the new bond scheme as an alternative to a tax holiday for repatriating overseas funds to fund the "3 million homes" program of President Prabowo, his brother.
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Presidential climate envoy Hashim Djojohadikusumo delivers remarks on Nov. 12 at the 2024 United Nations Climate Change Conference (COP29), which ran from Nov. 11 to 22 in Baku, Azerbaijan. (Reuters/Maxim Shemetov)
H
ashim Djojohadikusumo has pitched an idea for the government to issue housing bonds to attract overseas funds belonging to Indonesians, which he says could help drive President Prabowo Subianto's program to provide millions of affordable homes each year.
“Rather than a tax amnesty, which has uncertain impact, we could issue housing bonds,” the President’s younger brother, who is advisory board chair at the Indonesian Chamber of Commerce and Industry (Kadin), said on Friday, as quoted by CNBC Indonesia.
Indonesia first introduced tax amnesty in 2016, and then revived the program in 2022.
House of Representatives Legislation Body (Baleg) chairman Bob Hasan told The Jakarta Post last year that a new tax amnesty bill was included in the National Legislation Program (Prolegnas), and that it was “likely to become law in 2025”.
Hashim said the new bonds could be issued by state-owned lenders, such as Bank Tabungan Negara (BTN) and Bank Rakyat Indonesia (BRI), specifically to finance housing projects.
Investors who held a bond between five and 10 years would benefit from tax deductions, he said, while bond proceeds could be declared in tax filings in a scheme similar to a tax amnesty.
He said state institutions that managed vast funds, such as the Workers Social Security Agency (BPJS Ketenagakerjaan), the Deposit Insurance Corporation (LPS) and the Telecommunications and Information Accessibility Agency (Bakti), could also participate in the scheme.
