{"id":34232,"date":"2016-11-14T11:29:33","date_gmt":"2016-11-14T04:29:33","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/indonesias-tax-amnesty-pumps-confidence-back-into-property\/"},"modified":"2016-11-14T11:31:44","modified_gmt":"2016-11-14T04:31:44","slug":"indonesias-tax-amnesty-pumps-confidence-back-into-property","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indonesias-tax-amnesty-pumps-confidence-back-into-property\/","title":{"rendered":"Indonesia\u2019s tax amnesty pumps confidence back into property"},"content":{"rendered":"<p>&#013;<br \/>\nNew infrastructure developments will open up opportunities<br \/>\nA promising future for Indonesia\u2019s real estate market. Image: Naruedom Yaempongsa\/Shutterstock<br \/>\nBy Todd Lauchlan<br \/>\nThe hottest topic in Indonesian politics right now is undoubtedly the tax amnesty program. Despite early reports that \u201cconfessions\u201d and both domestic and repatriated funds were only trickling in, there was a flood of applications at the last minute. Truly Indonesian style!<br \/>\nThe newly declared money\u2019s impact will first be felt in increased infrastructure spending. Over the medium term, it means stronger confidence in the real-estate sector\u2014not least because the planned infrastructure will open up possibilities for investment along newly created roads, rail and ports.<br \/>\nIndonesia\u2019s economy, ticking along at an annual growth of 5%, is the key driver of the property market. Yet tax amnesty will feed through in other important ways. Tax revenues have historically been paltry, and rampant evasion hampered the government\u2019s ability to budget for needed spending.<br \/>\nMore: Capital Place: A Good Sign for Jakarta\u2019s Future<br \/>\nWith the first round of the amnesty closed at the end of September, we won\u2019t know  how many used it, as the paperwork will take some time to process. However, any fresh funding for infrastructure are a positive.<br \/>\nClearly, the Joko \u201cJokowi\u201d Widodo administration is serious about reform. It cut in half a home sales tax as of September, thus bolstering the residential market. Home sellers will pay a final tax of 2.5% of the transaction price, down from 5%. For homes under 36 square meters, the tax is only 1%, to support low-income citizens. The tax office head Ken Dwijugiasteadi was quoted saying: \u201cOne of the people\u2019s primary need is to own a house.\u201d<br \/>\nThe official said on October 3 that the amnesty program had already collected Rp 97.2 trillion ($7.5 billion) in the first round, or 59% of the initial 165 trillion rupiah ($12.7 billion) target. The scheme runs through March 2017, with three three-month sessions. For the last three months of 2016, the redemption rate for newly declared assets overseas now rises from 2% to 3%, and from 4% to 6% for domestic money.<br \/>\nMore: The joy of tax \u2013 3 things we\u2019ve learned about real estate taxes in Indonesia<br \/>\nTycoons such as Anthoni Salim and James Riady have reported assets, as well as Tommy Suharto, setting an example for others. These declarations may have a snowball effect, encouraging others to report. The vast majority of the assets recouped are domestic. Repatriations are anemic, at only 13.6% of the Rp 1 quadrillion target, with 57% coming from Singapore. The government is targeting Rp 4 quadrillion in newly declared assets within Indonesia.<br \/>\nThere\u2019s added impetus for declarations in the second window, as businesses and rich individuals have sufficient time to prepare the paperwork. In the last \u201cwindow\u201d for the first three months of next year, the rate on domestic funds rises to a hefty 10% of assets, and repatriated to 5%. Singapore, now ensnared in the 1MDB scandal, has an incentive to push banks to aid the amnesty program, to bolster its international reputation for integrity. The Monetary Authority of Singapore managing director said in July that the 1MDB affair was \u201ca dent in our reputation as a clean and trusted financial center.\u201d<br \/>\nRead next: Sentiment in Indonesia is on the up &#013;<br \/>\n&#013;<br \/>\nSource : property-report.com&#013;<br \/>\nRead more&#8230;<a href=\"http:\/\/www.property-report.com\/indonesias-tax-amnesty-program-has-pumped-confidence-back-into-property\/\" target=\"_blank\">Indonesia\u2019s tax amnesty pumps confidence back into property<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#013; New infrastructure developments will open up opportunities A promising future for Indonesia\u2019s real estate market.&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-34232","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-8U8","jetpack-related-posts":[{"id":23027,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/will-indonesia-be-se-asias-new-tax-haven-paradise\/","url_meta":{"origin":34232,"position":0},"title":"Will Indonesia be SE Asia\u2019s new tax-haven paradise?","date":"August 16, 2016","format":false,"excerpt":"\r Several islands in Indonesia and Malaysia may share the spotlight with Singapore Dawn over Bintang, Indonesia. Image credit: julfran (Flickr) To meet its infrastructure targets and bridge a growing budget deficit, the Indonesian government is discussing the possibility of establishing tax haven jurisdictions in two of its islands. Coordinating\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28509,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indonesians-make-last-ditch-application-for-tax-amnesty\/","url_meta":{"origin":34232,"position":1},"title":"Indonesians make last-ditch application for tax amnesty","date":"October 4, 2016","format":false,"excerpt":"\r The queues ran long and late into the night Traffic in Jakarta. Kichigin\/Shutterstock Around 2,750 people lined up at Indonesia\u2019s tax headquarters to beat the deadline of the first phase of the tax amnesty program \u2014 with some even queuing up until late night. In a handwritten letter to\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23703,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/invest-in-real-estate-tax-amnesty-participants-in-indonesia-urged\/","url_meta":{"origin":34232,"position":2},"title":"Invest in real estate, tax amnesty participants in Indonesia urged","date":"August 23, 2016","format":false,"excerpt":"\r Or face \u201chell,\u201d Finance Minister warns View of Surabaya City, Indonesia. Image credit: Andreas Hie\/Shutterstock Those granted amnesty under the Indonesian government\u2019s program of tax repatriation are being encouraged to pour their money back into real estate. At a seminar in Jakarta on Friday, Financial Services Authority head Muliaman\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29481,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/the-joy-of-tax-3-things-weve-learned-about-real-estate-taxes-in-indonesia\/","url_meta":{"origin":34232,"position":3},"title":"The joy of tax: 3 things we\u2019ve learned about real estate taxes in Indonesia","date":"October 11, 2016","format":false,"excerpt":"\r Tax amnesty, tax havens and luxury taxes in Indonesia \u2013 it\u2019s all going on Africa Studio\/Shuttershock Tax, the second most interesting word in the English language ending with \u2018x\u2019, is cropping up in Indonesian property news a lot lately. With current growth figures nothing to celebrate \u2013 a far\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14858,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/residents-look-skywards-in-traffic-ridden-jakarta\/","url_meta":{"origin":34232,"position":4},"title":"Residents look skywards in traffic-ridden Jakarta","date":"May 30, 2016","format":false,"excerpt":"\r The Indonesian capital\u2019s legendary traffic jams compel developers and dwellers to aim high\u00a0with living quarters Rush hour in Jakarta. (Image credit: Sayy\u2019s 365) Two hours \u2013 that\u2019s how long a typical commute takes in Jakarta, the frenetic Indonesian capital that is home to more than 26 million. These conditions,\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11080,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indonesia-property-awards-2016-new-date-set-head-judge-named\/","url_meta":{"origin":34232,"position":5},"title":"Indonesia Property Awards 2016 new date set, head judge named","date":"April 21, 2016","format":false,"excerpt":"\r The most exclusive real estate awards programme in Indonesia takes place on 13 October at the Fairmont Jakarta Hendra Hartono of Pt Leads Property Services Indonesia, is the Indonesia Property Awards 2016 chairman of the judges Coming back for a successful second year, the Indonesia Property Awards 2016 promises\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/34232"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=34232"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/34232\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=34232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=34232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=34232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}