Indonesia will open Tax Haven Island to stop overseas investment in Singapore

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The government based in Jakarta has released plans to reserve two Indonesian islands near Singapore for the purpose of having its own tax haven to prevent taxpayers from keeping their investments overseas in rival jurisdiction Singapore.
Resort Islands Bintan and Rempang, are both an hour’s ferry ride away from Singapore, and may soon officially become low-tax jurisdictions where both Indonesian and foreign companies can set up subsidiary vehicles to house and maintain their offshore assets.

The Indonesian government has decided to establish these islands as tax havens as an estimated $77 million USD will be redistributed under the tax amnesty scheme, which will see these profits leave the country when the compulsory three years of keeping the funds within Indonesia expires.