Indonesia tax amnesty programme to have limited impact on Singapore banks

Total overseas asset declaration stood at S$108b.

According to Maybank Kim Eng, as of end-Jan, tax amnesty statistics show that total overseas asset declaration stood at IDR1,014t (SGD108b), and repatriation at IDR141t (SGD15b). In early-Oct 2016, declaration and repatriation was IDR952t (SGD100b) and IDR137t (SGD14b) respectively.

Maybank Kim Eng previously highlighted that the impact of IATP on outflow of system deposits is likely to be limited. Due to lack of disclosures, we assessed the impact using nonresidents’ DBU deposits and ACU deposits by East Asia region.

In SGD terms, ACU deposits by East Asia region +1.2% YoY (Nov: +4.1% YoY) partly due to appreciation of USD. In USD terms, it is -0.8% YoY (Nov: +2.4% YoY).