The government of Indonesia made several major tax changes in 2020 aimed at attracting investments to boost jobs creation and ultimately the growth of the Indonesian economy. The corporate income tax rate was reduced, followed by changes in the tax system from worldwide to territorial taxation with exemptions for foreign income and an inward expatriate regime to attract highly skilled labour and to encourage the transfer of knowledge and technology. In addition to that, the withholding tax rate on interest on bond payments to non-residents was also lowered. This article will highlight these changes and compare them to the practice in other countries. The article will also include a brief analysis of possible tax arbitrage and tax avoidance situations arising from the changes.