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Tax amnesty likely to encourage more IPOs: IDX
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A man passes the iconic round table on the trading floor of the Indonesia Stock Exchange (IDX). (thejakartapost.com/Wienda Parwitasari)
T
he tax amnesty that recently started running has already encouraged several businesspeople who are keeping money in offshore banks to plan for initial public offerings (IPO), says the Indonesia Stock Exchange (IDX).
IDX director Nicky Hogan said several businesspeople who kept their assets in offshore banks were likely to take advantage of the offered tax amnesty by repatriating their assets to finance their own companies. They have planned to sell shares in their companies through IPOs and buy the listed shares themselves with their repatriated assets .
Despite the fact that they are allowed to invest in non-listed companies, listing their company’s shares and buying them with their own assets will give them more benefits, according to Nicky.
“While putting their repatriated money into their companies, they also get cheap financing from the capital market,” Nicky told thejakartapost.com during a tax amnesty seminar in the IDX building on Tuesday.
Aside from that, he continued, the tax amnesty would create chances for repatriated funds to be invested in several securitized instruments. “Some securities companies have told us that they are ready to create RDPTs [private equity funds] that can be used to finance infrastructure projects,” Nicky said. (ags)
