Policy brief // Perkumpulan PRAKARSA






Wealth tax: Assessing the potential and opportunities of the implementation in Indonesia
November 16, 2022
Eka Afrina Djamhari, Irvan Tengku Harja, Rizky Deco Praha

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Abstract

The implementation of a wealth tax or a tax for the rich is increasingly finding relevance. Wealth tax can be a potential instrument in redistributing wealth, overcoming inequality, and increasing state revenue.

Poverty and inequality experienced an increase at the beginning of the Covid-19 pandemic, where the number of poor people increased but at the same time the number and nominal wealth of the rich and super rich (High Net Worth Individuals/HNWI) in Indonesia actually increased.

On the other hand, Indonesia's fiscal capacity has also been affected by the Covid-19 pandemic. As a result, state revenue has decreased, while the need for state spending continues to increase to deal with the impact of the pandemic.

Then how is the relevant wealth tax model implemented in Indonesia?

Find the answer in the PRAKARSA Policy Brief entitled “Wealth Tax: Measuring the Potential and Opportunities for Implementation in Indonesia”.

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