JAKARTA, Jan. 16 (Xinhua) -- Indonesia officially set the global minimum tax rate at 15 percent on Thursday, effective from the 2025 tax year, in an effort to foster a healthier and more competitive investment climate.

"This initiative aims to minimize unhealthy tax rate competition (race to the bottom) by ensuring that multinational companies with a minimum global consolidated revenue of 750 million euros pay a minimum tax of 15 percent in the countries where they operate," said Febrio Kacaribu, head of the fiscal policy agency at Indonesia's Ministry of Finance, in an official statement.

He said that the tax policy would not impact individual taxpayers or micro, small and medium enterprises.

He said that the global minimum tax represented the culmination of at least five years of international collaboration, including Indonesia's active participation, aimed at establishing a fairer global tax system.

"With this tax policy, tax evasion practices, such as through tax havens, can be prevented. The government is optimistic that this step will not only enhance fairness in the tax system but also strengthen the competitiveness of national investment amid global challenges," he said. Enditem

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