Jakarta, CNBC Indonesia - Countries are built through taxes paid by\ntheir citizens. But did you know that the crazy rich or super wealthy in\nIndonesia have the potential to generate state revenue in the form of\ntaxes worth hundreds of trillions of rupiah.<\/p>\n
Research by the Center of Economic and Law Studies (CELIOS) in its\nreport on Indonesia\u2019s Economic Inequality 2026 reveals that the\npotential state revenue is Rp142 trillion if all super rich individuals\nwith assets above Rp84 billion in Indonesia are subject to a wealth\ntax.<\/p>\n
\u201cWealth tax on 50 trillionaires worth Rp93 trillion represents the\npotential state revenue from a 2 percent tax on the wealth of\nIndonesia\u2019s 50 richest people,\u201d CELIOS stated, as quoted on Tuesday\n(28\/4\/2026).<\/p>\n
CELIOS notes that during the 2019-2025 period, the wealth of\nIndonesia\u2019s 50 richest people nearly doubled, from around Rp2,508\ntrillion to Rp4,651 trillion in 2026. This amount is equivalent to\none-fifth of Indonesia\u2019s GDP.<\/p>\n
This increase in wealth is considered alarming because it highlights\nvery clear inequality on one side.<\/p>\n
\u201cThe wealth of Indonesia\u2019s 50 richest people is equivalent to\none-fifth of Indonesia\u2019s GDP,\u201d CELIOS wrote.<\/p>\n
CELIOS observes wealth inequality between Indonesia\u2019s crazy rich and\nthe general population. Additionally, inequality is also evident in the\nbenefits and \u2018harms\u2019 received by ordinary citizens.<\/p>\n
According to CELIOS records, the median wealth of 50 super rich\nindividuals in Indonesia in 2026 reaches Rp52.3 billion, while the\nmedian wealth of the population is only Rp84.35 million.<\/p>\n
Looking ahead, the gap is expected to widen further, with super rich\nmedian wealth projected to surge 106% to Rp107.7 trillion by 2050. In\ncontrast, median population wealth will only rise 20% to Rp101\nmillion.<\/p>\n
\u201cThe economy based on the exploitation of natural resources generates\nhuge profits for a handful of super rich groups. Meanwhile, the\nadditional costs due to environmental damage are borne by society,\u201d it\nemphasised.<\/p>\n
Therefore, CELIOS recommends that the government impose a wealth tax.\nThe concept of wealth tax has long been an alternative discourse as a\nform of progressive annual levy based on an individual\u2019s total assets\nminus their liabilities.<\/p>\n
Various countries have implemented wealth taxes, such as Colombia,\nArgentina, Bolivia, and even Norway, which still has a wealth tax system\nto this day. A more aggressive wealth tax targeting ultra-wealthy\nindividuals can effectively complement the income tax system.<\/p>\n
\u201cWealth tax is categorised as a progressive tax because the burden is\nrelatively greater on the rich group compared to regressive taxes that\nburden the poor.\u201d<\/p>\n
The wealth tax is supported by the public, according to CELIOS.\nCELIOS\u2019s survey results on public perceptions of wealth tax also\nreceived high support. The majority of the public agrees if wealth tax\nis implemented in Indonesia.<\/p>\n
The majority of respondents also believe that wealth tax can reduce\neconomic inequality between social classes.<\/p>\n
The most concrete impact is an increase in state tax revenue, which\ncan thicken the state budget to act as a buffer against shocks, as is\nhappening now, amid economic uncertainty from external factors.<\/p>\n
\u201cTax revenue will increase significantly, meaning the government can\nraise spending budgets for social protection functions without raising\nexisting tax rates. In times of crisis, wealth tax can also serve as a\nfiscal shock absorber,\u201d CELIOS wrote.<\/p>\n
The potential for wealth tax can be more optimal with a threshold or\nminimum wealth tax imposition limit of Rp84 billion. With a progressive\nrate of 1-2%, the potential wealth tax could reach Rp142.2 trillion per\nyear. This amount is nearly 60% of the total personal income tax paid by\nall workers in Indonesia.<\/p>\n
For information, in the first quarter of 2026, tax revenue consisted\nof Corporate Income Tax (PPh) of Rp43.3 trillion. Personal Income Tax\nand PPh 21 was recorded at Rp61.3 trillion, up 15.8%. Meanwhile, final\nPPh 22 and PPh 26 was Rp76.7 trillion, up 5.1%.<\/p>\n
\u201cAmid widening inequality, the state actually has room to extract\ngreater contributions from the top group, not from ordinary people who\nare already burdened,\u201d CELIOS emphasised.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/potential-wealth-tax-on-indonesias-super-rich-could-reach-rp142-trillion-1777355520", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }