Beyond Tax Amnesty: Purbaya Eyes Targeted Incentives for Repatriation

JAKARTA. Finance Minister Purbaya Yudhi Sadewa revealed that the government is currently reviewing the possibility of providing tax incentives to encourage the repatriation of Indonesian citizens' funds held overseas.

This incentive scheme is considered to be more effective than a traditional tax amnesty program. However, Purbaya has not yet disclosed specific details regarding the type of incentives that will be offered.

As reported by Bisnis.com, Purbaya made the statement after attending a limited cabinet meeting at the Presidential Palace in Jakarta (19/9).

According to Purbaya, the plan could potentially be implemented within the next two months at the latest. The goal is to attract US dollar-denominated funds owned by Indonesians that are currently kept abroad.

In addition, Purbaya stated that the incentive is not only intended to bring offshore funds back to Indonesia but also to retain domestic funds and encourage them to be invested locally.

He also admitted that he had only recently learned about the significant volume of funds being transferred abroad by Indonesian citizens each month. "From what I’ve seen, the plan is actually quite good," said Purbaya.

Plans for a Third Tax Amnesty

This repatriation incentive proposal emerges just as the House of Representatives (DPR) has once again included a Draft Law on Tax Amnesty (RUU Tax Amnesty) in the 2026 National Legislative Program (Prolegnas).

The draft law was proposed by Commission XI of the DPR. So far, tax amnesty has been one of the key instruments used by the government to encourage the repatriation of funds.

Previous repatriation efforts have largely relied on tax amnesty schemes.(ASP/KEN)