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.
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“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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