The Government will provide incentives for foreign companies to invest their profits in Indonesia.
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" The purpose [ plan policy ] is to reduce the rate of repatriation " or dividends are returned to their respective countries , said Minister of Finance Chatib Basri , on Monday . Providing incentives are also expected to make Indonesia more attractive in the eyes of investors .
Chatib not outlined further plans . He simply stated that the amount of the tax would be one part of the policy change , which seems to be launched later this month .
The Government is sticking growing current account deficit swells . Moreover , economic growth continues to slow down. The rupiah weakened to near its lowest level against the U.S. dollar . The weakening rupiah participate are encouraged foreign capital outflows from Indonesia .
With increasing openness to foreign investment , the government hopes to ward off the current account deficit at once restoring growth on track .
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