BCA, Bank Danamon among banks to manage Indonesia repatriated amnesty funds

By Hidayat Setiaji

JAKARTA (Reuters) – Bank Central Asia Tbk (BCA) and Bank Danamon Tbk are expected to be among lenders named by Indonesia’s government to manage funds repatriated due to a tax amnesty that is expected to attract billions of dollars in assets.

The nine-month program, approved last month by a parliament eager to tackle a budget shortfall, offers citizens low rates for paying some penalty on assets at home or abroad that have not been previously declared.

BCA president director Jahja Setiaadtmadja that the government was expected to appoint seven regular banks including four state-controlled lenders as well as two shariah banks.

“On how much funds will be repatriated, we can’t make an estimation. We will be prepared if there are inflows,” he said in a text message. He also named Bank Tabungan Pensiunan Nasional Tbk as one of the appointed banks.

The head of state-controlled Bank Mandiri, Kartiko Wirjoatmodjo, said in a text message that the banks have met with the finance minister and were making preparations.

Bank Mandiri will offer bonds, stocks and mutual funds products to the tax amnesty participants, he added.

(Reporting by Hidayat Setiaji; Writing by Fransiska Nangoy; Editing by Shri Navaratnam and Edwina Gibbs)