BKPM chief Franky Sibarani mentioned the policy will give positive impact to Indonesia's competitiveness. It also could attract more investments to the country.
"The cut will make Indonesia's fiscal structure more competitive compared with other ASEAN member countries," he said in a press release, Jakarta, Wednesday (4/13/2016).
The new corporate tax will be lower than average corporate tax in the region which is at 22.8 percent. "If we could attract more investments, we will receive more tax revenue. So it is win win solution," he continued.
Corporate tax in Singapore is 17 percent while the tax in other Asian countries varies between 5-30 percent.
The last time the government lowered corporate tax was in 2010.