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Repatriated assets to reach Rp 180t in 2016: BI
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Bank Indonesia Governor Agus Martowardojo gives remarks at the Executives Meeting of Asia Pacific Central Banks (EMEAP) in Bali on Aug. 1. (Courtesy of Bank Indonesia/-)
B
ank Indonesia estimates repatriated assets from the tax amnesty program will reach Rp 180 trillion (US$ 13.76 billion) by the end of the year, far below the government’s target of Rp 1 quadrillion.
However, Bank Indonesia Governor Agus Martowodojo is optimistic that the capital inflow from repatriated assets will add liquidity to the banking industry and boost lending growth to reach 12.7 percent in 2017.
"We expect repatriated assets to reach Rp 180 trillion by December 2016 and will [positively] affect lending growth, which is likely to be below 10 percent in 2016, to reach 12.7 percent next year," Agus said during on Wednesday evening.
He was speaking at a hearing between House of Representatives Commission XI, overseeing finance and banking affairs, and the Finance Ministry, the National Development Planning Board (Bappenas) and the Central Statistics Agency (BPS) in Jakarta on Wednesday evening.
As of Wednesday night, repatriated assets stood at Rp 14.73 trillion, according to tax office data.
During the meeting, Agus also said the central bank estimated the economy to grow 5.21 percent next year, higher than Commission XI’s estimate of 5.05 percent.
Finance Minister Sri Mulyani Indrawati predicted the economy to grow between 5.1 percent and 5.2 percent next year, mostly driven by investment, which is expected to grow 6.1 percent, assuming capital inflow from the tax amnesty program boosts investment. (bbn)
