Tax amnesty seen unlocking gains in Indonesian property stocks

Jakarta

ONE of the biggest winners from an Indonesian tax amnesty may turn out to be the shares of real-estate developers, as funds get channelled into investments in the nation's houses and apartments.

Bank Indonesia estimates about 560 trillion rupiah (S$56.8 billion) of undeclared income will be repatriated as a result of the reprieve. In a country where less than 0.2 per cent of people own stocks, a chunk of this is likely to eventually be spent on real estate, according to PT Manulife Aset Manajemen Indonesia. The amnesty, together with a relaxation of mortgage rules and falling lending rates, may feed a resurgence in property stocks.