Lippo Group mulls moving Singapore-listed REITs to Indonesia

This would be the case if REIT income taxes are lowered.

As the Indonesia's tax amnesty is expected to potentially help clean up the "underground" economy, Lippo Group Chairperson and billionaire Mochtar Riady said the group may consider moving its Singapore-listed real estate investment trusts to Indonesia.

According to Riady, this should come if tax incentives are made as attractive as Singapore.

Lippo has two property trusts listed in the city-state, including First REIT, which owns Indonesian hospitals, and Lippo Malls Indonesia Retail Trust, which holds shopping centers.

The relocation would depend on a government ruling on further lowering the final income tax for REITs.

“If the Indonesian tax laws change, then I think it will give an opportunity to property developers to list their assets here,” Riady said. “Then it would make sense to list our Indonesian assets in Indonesia and the Singapore assets in Singapore.”

To recall, Indonesia cut the rate of transferring assets into real-estate investment trusts to as little as 0.5 percent from 5 percent in March to become more competitive against neighboring countries.

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