BKPM Chief Says Tax Amnesty Benefits Won't Be Felt Until Later in 2017

The Investment Coordinating Board (BKPM) predicts that investment growth in Indonesia will be sluggish next year because many businesspeople are still focused on the tax amnesty programme. BKPM Head Thomas Lembong said the Indonesian economy next year will still be supported by government spending and public consumption. “I personally am very understanding that all businesspeople and investors are focusing on the Tax Amnesty first; if necessary, investment can be set aside for a while to ensure they participate maximally in the Tax Amnesty,” Lembong said at the Ritz Carlton Pacific Place Hotel, Jakarta, on Thursday (5/10). However, Lembong remains optimistic that investment will improve in the second quarter of 2017 due to the success of the Tax Amnesty. The former Trade Minister is targeting investment growth of 12 to 14 per cent next year. “So the money goes into the bank first. Now, for the money from the bank to flow into the real sector, I estimate it will take six to nine months. So my target for next year is at least that (12-14 per cent),” he concluded.