CELIOS’s latest report shows that Indonesia actually has many new “revenue engines” that can be tapped without burdening ordinary people. If implemented properly, these alternative sources could generate up to IDR 524 trillion in additional revenue each year. They range from wealth taxes, carbon taxes, coal production taxes, windfall profit taxes and digital taxes to excise duties on sugary drinks. All have significant potential, provided the government is willing to review ineffective tax incentives.

CELIOS stresses that tax reform is not merely about the figures on the state’s balance sheet, but a major agenda for ensuring social justice, transparency and sustainability. Taxes can be a tool not only to strengthen fiscal capacity, but also to steer development: who benefits, who bears the burden, and how the economy can grow without sacrificing future generations. In other words, taxation must be an instrument for building a fairer and more sustainable Indonesia—not just a “routine levy” that feels like a burden.

This report shows that Indonesia actually has plenty of new “revenue engines” that can be tapped without putting extra burdens on people. If managed properly, these alternative sources could generate up to IDR 524 trillion every year . From wealth tax, carbon tax, coal production tax, windfall profit tax, digital tax, to excise on sugary drinks—all hold significant potential, provided the government is willing to review ineffective tax incentives.

CELIOS stresses that tax reform is not just about balancing numbers on the state’s ledger, but a major agenda to secure social justice, transparency, and sustainability. Taxation should function not only as a tool to strengthen fiscal capacity, but also as a compass to steer development: determining who benefits, who bears the cost, and how the economy can grow without sacrificing future generations. In other words, taxes must serve as an instrument to build a fairer and more sustainable Indonesia—not merely a “routine levy” that feels like a burden.

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