Indonesia Seeks to Boost IPO Market Through Tax Cuts

Sept. 5, 2019, 9:43 AM UTC

Indonesia is seeking to revive its market of initial public offerings by cutting taxes for companies that sell shares.

Listed firms would enjoy a lower-than-normal 17% corporate tax rate in the first five years following their IPOs, according to a government proposal. The rate would undercut Southeast Asian neighbors from Malaysia to Thailand and Vietnam and equal Singapore’s.

Indonesian IPOs have raised $671 million this year, down 33% from the same period in 2018, according to data compiled by Bloomberg. The country trails Singapore and Thailand on 2019 fundraising, while surpassing Malaysia and Vietnam.

The tax-cut plan is part of ...

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