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New ruling issued on procedure for repatriated funds placement, 55 firms name as gateways


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JAKARTA (TheInsiderStories) – The Indonesian Finance Ministry has issued new ruling (PMK No. 122, 2016) on procedures for repatriated funds placement in non-financial sector. In relation to the procedures,  Finance Minister Sri Mulyani Indrawati has appointed 55 financial companies as gateways for repatriating Indonesians’ assets abroad under the tax amnesty program.

The ruling regulates mechanism where owners of the repatriated funds invest their money in non-financial sectors such as property, precious metals and other real or productive sectors of the economy.

“PMK No. 122 Year 2016 has been issued on mechanism for repatriating funds of tax payers to the country and placement of the funds in non-financial market instruments. These funds will be invested in real sector, property, precious metal and other valid investment areas,” Novi Puspita Wardani, head of sub-directorate for management of state commercial papers portfolio at the Finance Ministry.

Through the ruling, banks are formally appointed as gateways for the repatriated funds.The ruling aims to monitor flow of repatriated funds to non-financial sector, she said.

The funds flowing to non-financial sector must also be brought in through banks, Novi said.

Meanwhile, Deputy Finance Minister Mardiasmo said, until August 10, declarations of assets from a tax amnesty program has reached more than Rp 11 trillion with Rp 236 billion ransom.

The Finance Ministry’s director general of risk and financing management Robert Pakpahan said 55 companies have been appointed as gateways, consisting of 18 banks, 18 investment managers, and 19 securities houses. Robert said the government will add more gateway financial institutions.

The appointment of these companies as gateways is an implementation of Law No. 11/2016 on Tax Amnesty as well as the Finance Minister’s Derivative Rules.

Taxpayers planning to bring home their overseas assets must do so via gateways to select their preferred investment instruments both in and outside the financial market.

On Thursday last week, President directors of three state banks and one private bank signed the gateway contracts. The banks are Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), and Bank Central Asia (BCA). (*)

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Source: The Insiderstories
New ruling issued on procedure for repatriated funds placement, 55 firms name as gateways

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