Tax incentives could resist repatriation of foreign capital

Jakarta - economist Samuel Securities , Lana Soelistyaningsih , said the tax incentive is effective enough to reduce the repatriation of foreign capital . " It was great to relieve pressure on the current account , " said Lana told Tempo on Wednesday, November 13, 2013 .
Assessed tax incentives can help reduce the flow of funds out of the country . End , he said , would reduce pressure on the rupiah .

According to Lana , the government should encourage foreign corporations to invest more advantage in Indonesia. And do not choose to repatriate overseas assets . During this time , he said , many corporations already has an agreement with its parent company about repatriation .
Them - foreign companies - should be encouraged to invest in the development of import substitution industries . Thus , Indonesia is no longer heavily dependent on outside . " For example, Toyota Astra . He is the sole agent ( ATPM ) . Astra okay , some of the profits he would wake up the industry for components that have been imported , it should be given incentives so that the money invested back , " he said .
According to Lana , the form of tax incentives that can be provided include restitution or tax holiday . He explained that , when referring to the trade balance , the amount of repatriation of assets ( dividends , coupons , royalties , etc. ) could reach U.S. $ 6-8 billion in a single quarter . " Just great , " he said .
Current account deficit was close to U.S. $ 10 billion, or 4.4 percent of gross domestic product in the second quarter of 2013. Even so , the central bank has noted an improvement in the third quarter of 2013. BI spokesman , Difi Johansyah , said the deficit down to around U.S. $ 8.4 billion or 3.8 percent of GDP .