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Tax amnesty program likely to boost growth, BI says
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Bank Indonesia Governor Agus Martowardojo speaks during a discussion at Bank Indonesia in Jakarta. (Tempo/-)
T
ax Amnesty implementation is expected to boost capital inflow and economic growth, Bank Indonesia Governor Agus Martowardojo said, referring to the government’s tax incentive program that kicked-off on Monday.
Bank Indonesia predicts that the Indonesian economy will grow a mere 4.94 percent in the second quarter, a slight increase compared to 4.92 percent in the previous quarter.
Meanwhile, the overall economic growth target for 2016 is between 5 to 5.4 percent.
Based on the Bank Indonesia assessment, as of July 1, there was a reported Rp 108 trillion (US$ 8.24 billion) of capital inflow in the country.
Economic growth will further increase following the tax amnesty, he said. “With tax amnesty and considerable capital inflow, we are quite optimistic that it will be corrected upward," Agus said at the State Palace on Monday.
Bank Indonesia’s assessment on year end economic growth has not taken into account tax the amnesty program, therefore with the possibility of massive capital inflow as a result of the program, the economy is likely to grow faster in the following quarters, he added. (bbn)
