Government continues to encourage more companies to take floor on the stock market through incentives and tax facilities. This year, the Indonesia Stock Exchange (IDX) targets IPO to reach 45 firms. The provision of tax incentives aims to increase the role of capital markets in the Indonesian economy and to encourage transparency and corporate governance, including in terms of tax compliance The government provides incentives for reducing corporate income tax for companies listed on IDX with more than 40% of shares distributed in the stock market. Since 1983, the issuers get incentives of income tax cut by 5%.
