Wednesday, July 13, 2016

Tax amnesty to lift property demand

JAKARTA - Indonesia’s biggest mortgage lender, PT Bank Tabungan Negara (BTN), is optimistic that the tax amnesty will lead to increased property demand, both directly and indirectly.

BTN president director Maryono said the tax amnesty was expected to add to banking liquidity, which in turn would open more room for banks to cut their interest rates, hence bringing down the rates for mortgages. Moreover, investors who repatriated their assets may pick 'real estate investment', as stipulated in the Tax Amnesty Law.

"We need to see the practical implementation first, but the impact will be positive," Maryono told in Jakarta on Monday.

He said the state-owned lender would try to cut interest rates to below 10 percent at the end of 2016. Currently BTN's prime lending rate for mortgages is 10.5 percent.

"BTN has been appointed as one of the trustees for the tax amnesty program. That will support the bank’s financial structure, and we are preparing some instruments for the incoming investment," he said.


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