Indonesian tycoons are now coming around to embrace the much touted signature policy of President Jokowi. Will the growing acceptance of the amnesty hurt Singapore’s financial hub status?
When it was first launched it was met with doubts that it would be taken seriously. However high profile businessman Sofjan Wanandi along with well known property tycoon James Riady requested tax amnesty recently for their undeclared assets, the «Jakarta Post» reports.
The participation of what the government hopes to be the first wave of significant business figures participating in what has become known as President Joko Widodo's signature policy, is sure to put peer pressure on those of similar wealth and social status.
Singapore Could be Hit
«I appeal for other businessmen to follow suit,» said James Riady, whose father, Mochtar Riady, established the Lippo Group.
It is thought that Singapore’s wealth management industry could be hit as Ultra-High-Net-Worth-Individuals (UHNW) Indonesians relocate their money back onshore to take advantage of the tax amnesty.
Singapore though can still offer political stability, rule of law and a vast array of investment expertise for wealthy clients, at least for now.
Amounts Not Disclosed
According to private banking sources it has been estimated that as much as $200 billion of Indonesian UHNW assets could be in Singapore. This represents a significant portion of money managed by private banks in the financial hub.
Wanandi and Riady did not disclose the amount of unreported assets to be covered by the amnesty.
