Tax Amnesty; Singapore Prepares Incentives to Prevent Repatriation of Funds to Indonesia, This is the Response of Kadin

So that they do not withdraw their money stored in Singapore banks and move it to Indonesia along with the issuance of a tax amnesty by the Republic of Indonesia's government.

Vice President of the Indonesian Chamber of Commerce and Industry (Kadin) Shinta Widjaja Kamdani admitted that she has heard about the offer.

"So that the funds do not enter Indonesia, but are only declared. If declared, the funds and assets are still managed there (Singapore), it is their action and of course with a better return," said Shinta when met at the BKPM Building, Jakarta, Monday (7/18/2016).

According to Shinta, the incentive given by Singapore does not only come in the form of offers of better yield, but also the redemption fee that Indonesian entrepreneurs have to pay of 4 percent if they make a declaration will be paid by Singapore.

"‎Entrepreneurs will look at which one has a greater return, if in Singapore it is greater, then it is withheld, but if it is greater in Indonesia, it will be moved back here," said Shinta.

Shinta suggests that the government really prepare a better product than Singapore, regarding safety and enticing yield.

"Ultimately, entrepreneurs look for a better yield, so now we have to compete, how can Indonesia give a better yield so that they are willing to move their funds to Indonesia," she said.