IDX Reviews Tax Incentives for Issuers to Strengthen Capital Market
JAKARTA, DDTCNews - The Indonesia Stock Exchange (IDX) is evaluating and examining the effectiveness of tax incentives that have long applied to companies listed on the stock exchange.
IDX Chief Executive Officer, Jeffrey Hendrik, said the effort was undertaken to support the development of companies listed on the exchange. One of the tax incentives currently under evaluation is the application of a corporate income tax rate 3% lower than the statutory rate.
"We have completed a study to evaluate the effectiveness of tax incentives for listed companies. At present, companies that fulfil certain requirements may obtain a tax incentive in the form of a 3% reduction in the corporate income tax rate," he said on Monday (2/11/2026).
Pursuant to Article 17 paragraph (2b) of the Income Tax Law, public-listed companies may obtain a corporate income tax rate 3% lower than the current statutory rate of 22%. Accordingly, companies may benefit from an income tax rate of 19%.
There are at least 3 requirements that must be fulfilled to obtain the lower rate, namely: the taxpayer must be a resident corporate taxpayer in the form of a public company (Tbk); the total paid-up shares traded on the IDX must be a minimum of 40%; and certain additional requirements must be satisfied. See: Reminder: Public-Listed Companies May Obtain a Lower Income Tax Rate
Over time, Jeffrey has emphasised the importance of conducting academic research to design appropriate tax incentives going forward. He believes that a well-designed incentive framework is expected to increase the benefits of being listed on the Indonesian stock exchange.
"There are 4 initiatives we are building together with stakeholders, one of which is strengthening the benefits of being a listed company through an academic study analysing incentive design for listed companies in Indonesia," said Jeffrey.
In addition to evaluating and reviewing tax incentives for issuers, the IDX also has 3 other initiatives.
First, collaborating with the Ministry of Micro, Small and Medium Enterprises (MSMEs) to broaden entrepreneurs' understanding of and access to capital market financing alternatives, particularly for medium-sized companies.
Second, collaborating with PT Surveyor Indonesia to enhance company readiness through the processes of verification, validation and improvement of the quality of both financial and non-financial information.
According to Jeffrey, readiness to become a public company is not solely a matter of revenue or assets. Beyond that, companies must also be able to fulfil legal requirements and possess sound governance, risk management, transparency and readiness to address sustainability demands through the principles of environmental, social and governance (ESG) and decarbonisation.
Third, the IDX has launched the National Go Public Academy for Small Medium Enterprises programme. This programme was established as a platform for structured capacity-building, ranging from strengthening business fundamentals, governance, quality and transparency through to an understanding of the IPO process and responsibilities as a public company.
"We certainly hope that the study focusing on these 4 incentive pillars will serve as a strengthening measure for both prospective and existing listed companies. This will also provide a basis to improve governance within each company," said Jeffrey.
Jeffrey added that the IDX is not solely focused on increasing the number of IPO companies. Through these strategic steps, the IDX is endeavouring to broaden access to the capital market and improve company readiness and fundamentals.
Further, the IDX is also encouraging companies in Indonesia to continue growing and moving up the value chain, whilst maintaining good governance, competitiveness and sustainability. (dik)