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Alleged Railway Safety Mismanagement in Indonesia: Facts, Risks & Impact Explaineds
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Bisnis | Ekonomi - Posted on 29 April 2026 Reading time 5 minutes
The imposition of a wealth tax on Indonesia’s trillionaires, if implemented, could generate significant funds that may be allocated to programs benefiting both society and the state, including housing development, forest restoration, healthcare, and education.
A study by the Center of Economic and Law Studies (CELIOS) in its report Indonesia Economic Inequality 2026 reveals that the potential of a wealth tax could be optimized by setting a minimum threshold of Rp84 billion. With a progressive rate of 1–2%, the potential annual revenue could reach Rp142.2 trillion, nearly 60% of the total income tax paid by all workers in Indonesia.
For context, in the first quarter of 2026, tax revenues included corporate income tax amounting to Rp43.3 trillion. Meanwhile, individual income tax and Article 21 tax reached Rp61.3 trillion, reflecting a 15.8% increase. Final income taxes, including Articles 22 and 26, totaled Rp76.7 trillion, rising by 5.1%.
CELIOS estimates that a 2% wealth tax on the 50 richest individuals in Indonesia could generate approximately Rp93 trillion in state revenue.
From this Rp93 trillion potential, CELIOS identified at least 17 benefits for society and the country. These include the construction of 387,000 homes for low-income communities, provision of 41.34 million tons of subsidized fertilizer for farmers, and an additional 1.76 gigawatts of national energy supply from micro-hydro power plants. Furthermore, the funds could be used to restore 5.47 million hectares of tropical rainforest, pay 4.35 million monthly salaries for honorary teachers over two years, and provide old-age security for 34 million elderly citizens.
Other benefits include ensuring decent living standards for 21.7 million people, offering free commuter rail (KRL) services for eight years in the Greater Jakarta area along with the addition of 40 new train sets, and covering health insurance contributions for 180 million beneficiaries. The funds could also provide incentives for 4.88 million healthcare workers, daycare services for 9.13 million families with toddlers, and free higher education for 1.2 million students until graduation.
Additionally, the funding could support 465,000 scientific research projects, supply 5.8 million solar panels to remote villages, subsidize vehicle maintenance for 13.3 million ride-hailing drivers for one year, and improve economic access for 6.1 million people with disabilities. It could even eliminate costs for chronic disease treatments such as dialysis.
CELIOS classifies the wealth tax as a progressive tax, meaning the burden is borne more heavily by the wealthy rather than lower-income groups, unlike regressive taxes.
According to CELIOS survey results, the policy receives strong public support, with the majority of respondents agreeing with the implementation of a wealth tax in Indonesia.
Most respondents also believe that such a tax could help reduce economic inequality across different social groups.
CELIOS emphasized that amid widening inequality, the government actually has room to collect greater contributions from the wealthiest segment of society rather than placing additional burdens on ordinary citizens who are already under economic pressure.
Source: cnbcindonesia.com
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