Indonesia Prepares for Huge Capital Inflows

Jakarta, 21 Dzulqa’dah 1437/24 August 2016 (MINA) – The Indonesian government on Tuesday unveiled new rules to maintain and improve procedures on investment as a rapid of capital inflows is expected to enter the country following a relaxation on tax rules.

President Joko Widodo was quoted by Xinhua as telling a cabinet meeting to simplify and shorten the procedures for investing in the Southeast Asia’s largest economy, according Pramono Anung, secretary of cabinet.

The authorities at ministries or state agencies are barred from issuing new rules which lengthen the procedures or overlap with other policies, he added.

When needed, the issuance of a new rule must be coordinated and approved in a meeting at ministerial level, said Pramono.

In June, Indonesia endorsed tax amnesty program, which has bolstered shares in the sectors of banking, infrastructures and property, as investors expect it will spur a huge of inflows of capitals.

Besides, Indonesia’s economy is predicted by the IMF to accelerate at a faster pace next year.

Last week, Indonesian central bank refrained from implementing easing policy despite of subdued inflation and weakening global growth as the lender aimed at supporting the capital inflows.

Indonesia has lifted 3,143 rules at the provincial level which hampered investment and efforts to boost the country’s competitiveness.

Indonesia expects 631.5 trillion rupiah (some 47.3 billion U.S. dollars) investment next year from this year’s target of 594.8 trillion rupiah (about 44.6 billion U.S. dollars), investment coordinating board has said. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)