JAKARTA. As of Monday (10/10) afternoon, tax authority had collected Rp 142 trillion of repatriated funds, or only 14.2% of Rp 1,000 trillion. Government expects that the funds may generate national economy.

However, to date, the tax amnesty revenues allocation remains unclear, while Directorate General of Taxation still declines to specify the allocations of tax amnesty revenues. Furthermore, market also has not yet received significant capital inflows from tax amnesty revenues.

On banking sector, bankers are pessimistic that tax amnesty revenues allocation may boost credit growth.

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So far, only two foreign banks, namely Bank OCBC NISP and Maybank Indonesia, which have secured significant growth on third-party funds.

As of August 2016, OCBC’s third-party funds grew by 5.24% from Rp 90.35 trillion in June 2016 to Rp 95.1 trillion, while Maybank’s third-party funds grew by 1.6% to Rp 106.82 trillion. During the same period, the third-party funds of CIMB Niaga and Bank Danamon only grew less than 1%. Indonesian Stock Exchange (IDX) also has not yet recorded capital inflow from tax amnesty revenues.

Head of Research Department at Millenium Danatama Sekuritas Parningotan Julio said that it takes time for tax amnesty revenues to flow to IDX.

In line with Parningotan’s opinion, Head of Research Department at NH Korindo Securities Reza Priyambada said that tax amnesty revenues are unlikelty to flow to IDX in immediate time. Therefore, Reza targets JCI at conservative level, specifically 5,500 by the end of 2016. This prediction refers to macro condition without including tax amnesty factor.

Reza added that to date tax amnesty funds are deposited in the special accounts in perception banks for a temporary period. “The taxpayers do not necessarily make an immediate decision to allocate their funds to stock exchange”, said Reza.

Actually, multi funds and bond market have potentials to accept repatriated funds. However, analyst at Bond Pricing Agency (IBPA) Roby Rushandie and Head of Fixed Income at Incomitra Securities Maximilianus Nico Demus agreed that most of repatriated funds are still deposited in gateway banks.

(Muhammad Farid/Translator)