REPUBLIKA.CO.ID, JAKARTA -- The government, through the Coordinating Ministry of Economic Affairs, will soon formulate government projects to absorb repatriated funds from the tax amnesty program.

"We will hold a meeting with the State-owned Enterprises (SOEs) to carefully formulate projects and set criteria to ensure that the identified projects can receive these funds through the sale of shares and the issuance of bonds or securities," Chief Economic Minister Darmin Nasution stated in Jakarta on Thursday.

The minister noted that besides opting to invest in domestic government projects, taxpayers availing the tax amnesty program could also utilize their own funds to expand their private businesses in the country.

The government is also in the process of identifying ways through which tax amnesty participants could utilize their repatriated funds, such as by investing in businesses within the Special Economic Zone (SEZ).

According to Law No. 39 of 2009, an SEZ is a zone with certain borders and facilities within Indonesia designed to carry out economic activities.

Moreover, the privatization of SOE companies could also become an investment instrument for the tax amnesty program's participants, who want to divert their funds to them.

"There are companies that opt for rights issues. Even in the coming week, we will see the issuance of bonds, securities, and real estate investment funds (DIRE)," Darmin said.

With regard to the DIRE, the office of the Coordinating Minister for Economic Affairs will invite the concerned regional governments and will offer them a discount on the cost of obtaining land and building rights, particularly for infrastructure and property businesses that require large swathes of land.

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