JPMorgan’s Tandyono said the tax amnesty will spur demand for property.
For the first Quarter of this year, Indonesia’s residential property price index rose around 1.0% on quarter. While on year, growth slowed to 4.15 percent.
Based on a recent surge in the share prices of Indonesian property developers, the market appeared to expect the money funneled abroad outside the purview of tax authorities might find its way back to the sector.
Around $200 billion of Indonesian funds that weren’t declared to tax authorities there could be stashed in Singapore alone, Reuters reported recently, citing banking sources.
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