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Indonesia plans to cut corporate tax rate to 18% next year

[JAKARTA] Indonesia plans to cut the corporate income tax rate to 18 per cent from 25 per cent next year, a cabinet minister was quoted as saying by Indonesian media on Monday.

"We hope to finalise the plan soon for it to be effective next year," Luhut Panjaitan, Coordinating Minister for Political, Legal, and Security affairs told reporters over the weekend, the Kontan newspaper said.

In August, Finance Minister Bambang Brodjonegoro said the government will propose a revision of the income tax law to the parliament next year, with a plan to lower corporate income tax included. But he said the lower rate won't be effective until 2017.

Mr Bambang is not immediately available for comment on Monday.

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Southeast Asia's largest economy grew an annual 4.67 per cent in the second quarter, the slowest in six years. Its currency is trading at 17-year lows.

President Joko Widodo is expected to announce the second installment of a stimulus package aimed at luring investors, addressing growth slowdown and supporting the shaky rupiah soon.