STOCKS NEWS INDONESIA-Property stocks fall on plan to broaden tax-base
The Indonesian property sector index fell as much as 6.3 percent to 389.07 points, a day after the Indonesian finance minister said the government might broaden the tax base on property taxes.
The government plans to implement the changes, without actually raising property taxes, in order to meet revenue targets next year, the finance ministry said on its website on Monday evening.
"There is a sector that is booming and has not been touched, such as property. So, without the need to change the tax rate, if the tax base is raised, we can pursue tax (revenue) to match the State Budget 2014 (target)," Finance Mnister Chatib Basri said.
Shares of property developers Pakuwon Jati and Modernland Realty fell more than 11 percent. Other real estate firms such as Lippo Karawaci and Bumi Serpong Damai dropped more than 7 percent. The broader index was down 3.56 percent.
1018 (0318 GMT) (Reporting by Andjarsari Paramaditha and Rieka Rahardiana; Editing by Supriya Kurane)