Indonesian President mulling cutting corporate tax rate to 17% to match Singapore

President Widodo delivers a speech during an Indonesia-Malaysia bilateral meeting in Jakarta on Aug 1, 2016.
President Widodo delivers a speech during an Indonesia-Malaysia bilateral meeting in Jakarta on Aug 1, 2016.PHOTO: REUTERS

JAKARTA (REUTERS) - Indonesia's President Joko Widodo is considering cutting the corporate tax rate to 17 per cent from 25 per cent to match Singapore's tax rate, he has said.

"The thinking is simple. If Singapore's corporate income tax is 17 per cent and ours is 25 per cent, everybody will go there," Mr Widodo told a tax amnesty roadshow on Tuesday (Aug 9) night, according to the Cabinet Secretary's website.

The government is mulling whether to directly cut the current tariff to 17 per cent or to do it in two stages, where the tariff is first lowered to 20 per cent and then 17 per cent, the website said on Wednesday.