Too early for S'pore to shrug off Indonesia tax amnesty

THE Indonesian government's tax amnesty programme, which is due to expire by the end of March 2017, has had limited effect so far for Singapore, but events over the horizon could change this

When President Joko Widodo first announced that Indonesia would implement a tax amnesty, turning the other way if Indonesians who kept their assets abroad repatriated their money, Singapore would have been justified in feeling concerned.

Singapore, after all, is a major destination for Indonesian money. It is estimated that the city-state holds S$279 billion in Indonesian assets, and some 40 per cent of Singapore's total private banking assets are held by Indonesians. With such numbers on the line, a massive outflow of wealth from Singapore to Indonesia would surely prove disruptive.