Indonesia Rakes in Billions as Tax Amnesty Gathers Steam

A tax amnesty program launched by Indonesia to bring home money stashed overseas by wealthy individuals has attracted 135.4 trillion rupiah (US$10.5 billion) in asset repatriation since July, the government said Friday, The Wall Street Journal reported. The announcement came at the end of the final day of the most generous terms, as low as 2% penalties, offered to those participating in the tax program, which will continue for six months. The central bank hopes the program will attract 560 trillion rupiah (US$43 billion) in asset repatriation, which is expected to increase the amount of funds available for investment in the country. The Tax Directorate General’s office said that the program also so far brought in 86.9 trillion rupiah (US$6.7 billion) to state coffers from penalties paid in exchange for pardons, or more than half the 165 trillion rupiah that are eventually expected. Penalties are also paid on domestic assets undeclared previously and offshore assets declared but left outside the country. Read more. (Subscription required.)