The central bank calculated that the tax program could draw 560 trillion rupiah, or $42.5 billion, back into the country, with almost 30% or 165 trillion rupiah, going to the government.
President Joko Widodo’s government is facing a widening budget deficit and is anticipating the tax amnesty to help bring finances back in to balance.
“The first benefit from the tax amnesty would be the potential for capital inflows, which will really help the economy that’s currently seeking new sources of growth after a period of low commodity prices,” Finance Minister Bambang Brodjonegoro told reporters. “We hope this will boost growth.”
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