Indonesia President Considers Reducing Corporate Tax Rate to 17 Percent: Government Announcement by Reuters

JAKARTA – President Joko Widodo of Indonesia is contemplating a reduction of the corporate tax rate from 25 percent to 17 percent in order to align with Singapore’s tax rate, as reported on the cabinet secretary’s website on Wednesday.

During a tax amnesty event on Tuesday night, Widodo remarked, "The thinking is simple. If Singapore’s corporate income tax is 17 percent and ours is 25 percent, everybody will go there."

The government is weighing the options of either implementing an immediate cut to 17 percent or executing a phased approach, first reducing the rate to 20 percent before ultimately reaching 17 percent.