REPUBLIKA.CO.ID, BATAM - Indonesia's finance ministry is preparing four strategies to withdraw funds worth 1,500 trillion IDR kept in Singaporean banks.

"We are preparing four strategies," remarked Deputy Minister of Finance Bambang Brodjonegoro on Wednesday.

The four strategies are tax incentives, eradication of double taxation, encouraging the issuance of new financial industry products, and creating a special financial industrial zone. 

"They are rich people who need security assurance and high yield," he claimed.

Bambang noted that the government was currently working on a tax incentive that could possibly be applicable on financial products. He added that the tax incentive was not tax abolition, but tax elimination for new instruments. With regard to double taxation, he emphasized that the government had never recognized double taxation. 

"It is not allowed to impose double taxes on the same good," he stated.

Regarding the third strategy Bambang reported that the government would encourage the issuance of new financial products to absorb the funds of Indonesian citizens currently stacked up in Singapore. He explained that in another strategy the government would explore the possibility of setting up a special banking zone, located close to Singapore to make it easier for the Indonesian citizens in that country.

The policy was aimed at setting up offshore banking, which was basically a banking system that prioritized trust and banking tax incentives, he noted. Apart from the four strategies he emphasized that the government would also take efforts to pull the funds of oil and gas production sharing contractors that kept abroad.

"We will encourage the contractors to direct their foreign exchange income to Indonesia. What is most important now is that the funds will enter Indonesia, even in a matter of minutes," he added.

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