Indonesian Tax Justice Review
type: channel
description: Indonesian Tax Justice Review is a peer-reviewed academic journal dedicated to exploring the critical relationship between tax law, public policy, and social justice, with a primary focus on Indonesia and its evolving tax landscape. This journal provides a platform for interdisciplinary research, aiming to bridge legal, economic, and social perspectives on how tax systems can contribute to or hinder equitable outcomes in society. The journal delves into the complexities of tax law, examining issues of fairness and equity in taxation, from the design of tax policies to their implementation and enforcement. It seeks to promote discussions on how tax systems can support social justice, reduce inequality, and foster greater transparency and accountability in public finance. Contributions are encouraged that explore the balance between fiscal sustainability and social welfare, with a particular emphasis on the protection of taxpayer rights and the role of the state in ensuring a just and effective tax system. In addition, the journal invites contributions that analyze contemporary challenges in taxation, such as tax avoidance and evasion, international tax justice, and the impact of the digital economy on traditional tax frameworks. With an eye on reform, the journal also explores the potential for legal and policy innovations to address systemic flaws within the current tax system, ensuring that taxation serves the public good and promotes sustainable development. The Indonesian Tax Justice Review welcomes contributions from a diverse range of disciplines, including law, economics, political science, and public policy. Research articles, case studies, critical essays, and policy analyses are all welcomed, as long as they offer fresh perspectives on the role of tax in promoting justice and equity within Indonesia's socio-political and economic context.
publisher: The Network of Indonesian Legal and Justice Researchers
language: en
publication name: Indonesian Tax Justice Review
copyright: All writings published in this journal are the personal views of the authors and do not represent the views of this journal or the authors’ affiliated institutions. Authors retain copyrights without any restriction under the license of Creative Commons Attribution 4.0 International (CC BY 4.0).
items: Toward Regional Tax Justice: Prospects for ASEAN Tax Coordination
items: Gender and Tax Justice in Southeast Asia: A Comparative Fiscal Analysis
items: Informal Economy Taxation in ASEAN: Equity and Inclusion Challenges
items: Property Taxation and Local Fiscal Justice in Southeast Asia: A Comparative Study
items: Digital Economy Taxation in ASEAN: Comparative Approaches and Equity Challenges
items: Tax Treaties and Source-Based Taxation in Southeast Asia: A Justice-Oriented Comparison
items: Transfer Pricing Enforcement in ASEAN: Institutional Capacity and Tax Justice Outcomes
items: Tax Incentives in Special Economic Zones: Comparing ASEAN Approaches and Justice Implications
items: VAT Design and Equity in ASEAN: A Comparative Assessment of Indonesia, Thailand, and the Philippines
items: Tax Justice and Corporate Income Tax Competition in Southeast Asia: A Comparative Study
items: Sectoral Tax Justice and Global Value Chains: Evidence from Indonesia’s Resource and Digital Sectors
items: Taxation of Cross-Border Digital Services after Supreme Court Rulings in Indonesia
items: Windfall Profit Taxation in the Mining Sector: Lessons from Indonesia’s Policy Debate
items: Judicial Review of Transfer Pricing Cases at the Supreme Court Level in Indonesia
items: Supreme Court Jurisprudence on Tax Avoidance: A Critical Review of Indonesian Decisions
items: Taxation of Digital Advertising Services: Indonesia’s Policy Response and Global Relevance
items: Digital Platforms and VAT Collection: Justice Implications of Indonesia’s Marketplace Regime
items: Transfer Pricing Risks in the Mining Sector: Evidence from Indonesian Tax Disputes
items: Palm Oil Taxation and Environmental Justice: Fiscal Policy Challenges in Indonesia
items: Tax Justice in the Mining Sector: Indonesia’s Royalty and Income Tax Regime Revisited
items: Minimum Global Tax (Pillar Two) and Developing Country Interests: An Indonesian Assessment
items: Withholding Taxes on Cross-Border Payments and Developing Country Revenue Rights
items: Property Tax Reform and Local Fiscal Justice: Evidence from Indonesian Municipalities
items: Informal Economy Taxation and Justice: Policy Trade-offs in Indonesia
items: Luxury Goods Taxation and Symbolic Redistribution: An Indonesian Case Study
items: Automatic Exchange of Information and Developing Country Capacity: The Indonesian Experience
items: Transfer Pricing Disputes and Tax Justice: Lessons from Indonesian Court Decisions
items: Tax Amnesty Programs and Moral Hazard: Evaluating Indonesia’s Repeated Amnesty Experience
items: VAT Rate Increase and Regressivity: Evidence from Indonesia’s Consumption Tax Reform
items: The Omnibus Law on Taxation and Tax Justice: Assessing Equity Implications in Indonesia

Toward Regional Tax Justice: Prospects for ASEAN Tax Coordination
type: item
description: Regional tax coordination has gained prominence as a response to globalization and tax competition. This paper examines the prospects and challenges of ASEAN tax coordination from a tax justice perspective. Using institutional and comparative analysis, the study evaluates existing cooperation mechanisms and policy divergence. The findings suggest that limited coordination perpetuates inequities and revenue losses. The global contribution of this study lies in advancing regional approaches to tax justice in developing regions. ASEAN’s experience offers lessons for building cooperative tax governance frameworks that balance sovereignty and equity.
subject: Articles
  topic: section
subject: ASEAN tax coordination; regional taxation; tax justice; globalization; Southeast Asia
  topic: keywords
creator: Ammar Zaky Fadhlurrahman
creator: Agustinus Purnomo Aji
rights: Copyright (c) 2025 Ammar Zaky Fadhlurrahman, Agustinus Purnomo Aji (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-10-31
publication date: 2025-10-31
doi: 10.65815/hqy2dq56

Gender and Tax Justice in Southeast Asia: A Comparative Fiscal Analysis
type: item
description: Gender disparities remain deeply embedded in tax systems across Southeast Asia. This paper compares gender implications of tax policies in Indonesia, Malaysia, and the Philippines. Using gender-responsive fiscal analysis, the study examines income taxation, VAT, and social contributions. The findings indicate that indirect taxes disproportionately burden women. The global contribution of this study lies in incorporating ASEAN evidence into global gender and tax justice debates. The study highlights the need for gender-responsive tax design in developing regions.
subject: Articles
  topic: section
subject: Gender taxation; ASEAN; fiscal policy; equity; tax justice
  topic: keywords
creator: Gabriel Nathaniel Pradipta
rights: Copyright (c) 2025 Gabriel Nathaniel Pradipta (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-10-31
publication date: 2025-10-31
doi: 10.65815/8aaa6q84

Informal Economy Taxation in ASEAN: Equity and Inclusion Challenges
type: item
description: The informal economy constitutes a substantial share of economic activity in Southeast Asia. This paper compares policies toward informal sector taxation in Indonesia, Vietnam, and Cambodia. Using comparative policy analysis, the study evaluates equity implications and inclusion outcomes. The findings suggest that overly coercive formalization harms vulnerable groups, while excessive tolerance undermines fairness. The global contribution of this study lies in advancing tax justice discourse on informal economies. ASEAN experiences offer valuable insights for inclusive tax policy design in developing regions
subject: Articles
  topic: section
subject: Informal economy; ASEAN; inclusion; equity; tax justice
  topic: keywords
creator: Lê Quốc Bảo
creator: Mai Trọng Nghĩa
rights: Copyright (c) 2025 Lê Quốc Bảo, Mai Trọng Nghĩa (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-10-31
publication date: 2025-10-31
doi: 10.65815/avvrmp09

Property Taxation and Local Fiscal Justice in Southeast Asia: A Comparative Study
type: item
description: Property taxation is essential for local government finance yet remains underutilized in Southeast Asia. This paper compares property tax systems in Indonesia, the Philippines, and Vietnam to assess their role in promoting local fiscal justice. Using institutional and legal analysis, the study examines valuation systems, rate structures, and political constraints. The findings indicate that weak administration and political resistance limit redistributive potential. The global contribution of this study lies in providing comparative insights into subnational tax justice in developing regions. The ASEAN experience offers lessons for strengthening local taxation to reduce inequality.
subject: Articles
  topic: section
subject: Property tax; local taxation; ASEAN; fiscal justice; decentralization
  topic: keywords
creator: Alya Salsabila Rahma
creator: Siti Noor Aini
rights: Copyright (c) 2025 Alya Salsabila Rahma, Siti Noor Aini (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-10-31
publication date: 2025-10-31
doi: 10.65815/cwh7kq79

Digital Economy Taxation in ASEAN: Comparative Approaches and Equity Challenges
type: item
description: The digitalization of the economy has posed significant challenges to taxation across Southeast Asia. This paper compares digital taxation approaches in Indonesia, Singapore, and Vietnam to assess their equity and justice implications. Using comparative legal analysis, the study examines VAT on digital services, withholding mechanisms, and nexus rules. The findings reveal divergent policy approaches reflecting varying levels of administrative capacity. The paper argues that lack of regional coordination risks regulatory arbitrage. The global contribution of this study lies in providing a regional perspective on digital tax justice in developing and middle-income economies. The ASEAN experience informs global debates on equitable digital taxation frameworks.
subject: Articles
  topic: section
creator: Natalia Grace Dewi Puspa
rights: Copyright (c) 2025 Natalia Grace Dewi Puspa (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-10-31
publication date: 2025-10-31
doi: 10.65815/br7fh025

Tax Treaties and Source-Based Taxation in Southeast Asia: A Justice-Oriented Comparison
type: item
description: Tax treaties play a critical role in allocating taxing rights between countries, often constraining source-based taxation in developing economies. This paper compares tax treaty networks and withholding tax provisions in Indonesia, Thailand, and Malaysia. Using doctrinal treaty analysis, the study evaluates the distributive consequences of treaty design. The findings indicate that extensive treaty concessions significantly reduce source-country revenues. The paper argues that treaty policy choices have long-term implications for tax justice. The global contribution of this study lies in highlighting how treaty practices in ASEAN reflect broader structural inequities in international tax law. The study contributes to calls for treaty reform to better protect developing country interests.
subject: Articles
  topic: section
subject: Tax treaties; source taxation; ASEAN; tax justice; withholding taxes
  topic: keywords
creator: Noor Aryani Puspa
creator: Aruna Bhakt Samudra
rights: Copyright (c) 2025 Noor Aryani Puspa, Aruna Bhakt Samudra (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-07-31
publication date: 2025-07-31
doi: 10.65815/2a2qk017

Transfer Pricing Enforcement in ASEAN: Institutional Capacity and Tax Justice Outcomes
type: item
description: Transfer pricing enforcement remains a major challenge for tax authorities in Southeast Asia due to limited capacity and complex multinational structures. This paper compares transfer pricing enforcement practices in Indonesia, Malaysia, and Vietnam to assess their implications for tax justice. Using doctrinal analysis and institutional comparison, the study examines legal frameworks, audit practices, and dispute resolution mechanisms. The findings indicate that differences in administrative capacity significantly influence enforcement effectiveness. Countries with specialized transfer pricing units and clearer guidelines achieve more equitable outcomes. The global contribution of this study lies in demonstrating how institutional capacity shapes the realization of tax justice in developing regions. The paper contributes to global debates on strengthening transfer pricing governance by providing ASEAN-based evidence on best practices and structural constraints.
subject: Articles
  topic: section
subject: Transfer pricing; ASEAN; tax administration; equity; tax justice
  topic: keywords
creator: Saraswati Anindita Dewi
creator: Andi Nur Alamsyah
rights: Copyright (c) 2025 Saraswati Anindita Dewi, Andi Nur Alamsyah (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-07-31
publication date: 2025-07-31
doi: 10.65815/gs412r19

Tax Incentives in Special Economic Zones: Comparing ASEAN Approaches and Justice Implications
type: item
description: Special Economic Zones (SEZs) are widely used across Southeast Asia to attract investment through preferential tax treatment. This paper compares SEZ tax incentive regimes in Indonesia, Vietnam, Cambodia, and the Philippines to evaluate their implications for tax justice. Using comparative policy analysis, the study assesses transparency, cost-effectiveness, and distributive impacts. The findings suggest that while SEZ incentives may attract investment, they often result in significant revenue losses and uneven development outcomes. The paper argues that SEZ-based tax incentives risk undermining horizontal equity by favoring firms within zones over domestic enterprises outside them. The global contribution of this study lies in advancing understanding of how geographically targeted tax incentives affect justice and development in emerging economies. The ASEAN experience offers broader lessons for designing investment policies that balance competitiveness with equitable taxation.
subject: Articles
  topic: section
subject: Special Economic Zones; tax incentives; ASEAN; equity; tax justice
  topic: keywords
creator: Tiur Marbun Sondang
creator: Isabella Miriam Putri
rights: Copyright (c) 2025 Tiur Marbun Sondang, Isabella Miriam Putri (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-07-31
publication date: 2025-07-31
doi: 10.65815/1fyyq594

VAT Design and Equity in ASEAN: A Comparative Assessment of Indonesia, Thailand, and the Philippines
type: item
description: Value-added tax systems are a cornerstone of revenue mobilization in Southeast Asia, yet their equity implications vary significantly across countries. This paper compares VAT design and implementation in Indonesia, Thailand, and the Philippines to assess their distributive effects and tax justice outcomes. Using comparative legal and policy analysis, the study examines VAT rates, exemptions, thresholds, and compensatory social policies. The findings reveal that while VAT systems enhance revenue stability, design differences significantly affect regressivity. Countries with higher thresholds and targeted exemptions exhibit better equity outcomes. The paper argues that VAT justice depends not solely on rate levels but on integrated policy design. The global contribution of this study lies in providing comparative evidence from ASEAN, a region underrepresented in global VAT literature. By highlighting how policy choices shape distributive outcomes, the study contributes to global debates on designing equitable consumption taxes in developing economies.
subject: Articles
  topic: section
subject: Value-added tax; equity; ASEAN; consumption taxation; tax justice
  topic: keywords
creator: Nayla Khairunnisa Putri
creator: Boruni Lestari Siregar
rights: Copyright (c) 2025 Nayla Khairunnisa Putri, Boruni Lestari Siregar (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-07-31
publication date: 2025-07-31
doi: 10.65815/rpwx1b23

Tax Justice and Corporate Income Tax Competition in Southeast Asia: A Comparative Study
type: item
description: Corporate income tax competition has intensified among Southeast Asian countries as governments seek to attract foreign direct investment in an increasingly integrated regional economy. This paper conducts a comparative analysis of corporate income tax policies in Indonesia, Vietnam, Thailand, and Malaysia to assess their implications for tax justice. Using doctrinal legal analysis and comparative policy evaluation, the study examines statutory tax rates, incentive regimes, and effective tax burdens across jurisdictions. The findings indicate that aggressive tax competition has led to declining corporate tax rates and expanding incentives, disproportionately benefiting multinational enterprises while constraining public revenue capacity. This dynamic undermines vertical equity and exacerbates fiscal inequality among ASEAN members. The paper argues that uncoordinated tax competition erodes the collective ability of Southeast Asian countries to finance development objectives. The global contribution of this study lies in highlighting regional tax competition as a structural challenge to tax justice in developing regions. By situating Southeast Asia within broader global debates on harmful tax competition, the paper contributes to international scholarship by advocating for enhanced regional coordination and minimum tax standards. These findings are relevant not only for ASEAN policymakers but also for other regional blocs confronting similar race-to-the-bottom dynamics.
subject: Articles
  topic: section
subject: Corporate tax competition; ASEAN; tax justice; investment incentives; Southeast Asia
  topic: keywords
creator: Vishnu Aditya Prabawa
rights: Copyright (c) 2025 Vishnu Aditya Prabawa (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-07-31
publication date: 2025-07-31
doi: 10.65815/kr3xx802

Sectoral Tax Justice and Global Value Chains: Evidence from Indonesia’s Resource and Digital Sectors
type: item
description: Global value chains shape how profits are distributed across jurisdictions. This paper compares tax justice outcomes in Indonesia’s mining, palm oil, and digital sectors. Using comparative sectoral analysis, the study examines how value chain positioning affects taxing rights. The findings reveal systematic disadvantages for source countries. The global contribution of this study lies in integrating sectoral analysis into tax justice discourse. Indonesia’s experience offers insights for rethinking taxation in globalized production systems.
subject: Articles
  topic: section
subject: Global value chains; sectoral taxation; tax justice; Indonesia
  topic: keywords
creator: Ethan Josiah Santoso
creator: Ni Luh Putu Candrawati
rights: Copyright (c) 2025 Ethan Josiah Santoso, Ni Luh Putu Candrawati (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-04-30
publication date: 2025-04-30
doi: 10.65815/e6kjg431

Taxation of Cross-Border Digital Services after Supreme Court Rulings in Indonesia
type: item
description: Recent Indonesian Supreme Court rulings have addressed the taxation of cross-border digital services. This paper analyzes these decisions to assess their implications for tax justice and digital economy governance. Using jurisprudential analysis, the study examines interpretations of permanent establishment and source rules. The findings indicate evolving judicial recognition of digital economic presence. The global contribution of this study lies in offering early judicial insights from a developing country confronting digital taxation challenges. Indonesia’s experience informs international debates on adapting tax concepts to digital business models and contributes to global tax justice scholarship.
subject: Articles
  topic: section
subject: Digital services tax; Supreme Court rulings; permanent establishment; tax justice; Indonesia
  topic: keywords
creator: Rayyan Harits Anshari
rights: Copyright (c) 2025 Rayyan Harits Anshari (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-04-30
publication date: 2025-04-30
doi: 10.65815/9fs40b66

Windfall Profit Taxation in the Mining Sector: Lessons from Indonesia’s Policy Debate
type: item
description: Commodity price volatility has renewed interest in windfall profit taxation as a tool for equitable revenue mobilization. This paper examines Indonesia’s policy debates surrounding windfall taxes in the mining sector. Using policy and legal analysis, the study evaluates the equity rationale, revenue potential, and legal feasibility of windfall taxation. The findings suggest that windfall taxes can enhance distributive justice by capturing extraordinary profits during commodity booms, provided that design and implementation are transparent. The global contribution of this study lies in offering a developing country perspective on windfall taxation in extractive industries. Indonesia’s experience contributes to international debates on resource rent sharing and fiscal justice during periods of price volatility.
subject: Articles
  topic: section
subject: Windfall tax; mining sector; resource taxation; tax justice; Indonesia
  topic: keywords
creator: Ihsan Rafif Alfaruq
creator: Sasmita Citra Pertiwi
rights: Copyright (c) 2025 Ihsan Rafif Alfaruq, Sasmita Citra Pertiwi (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-04-30
publication date: 2025-04-30
doi: 10.65815/fcejhk03

Judicial Review of Transfer Pricing Cases at the Supreme Court Level in Indonesia
type: item
description: Supreme Court review of transfer pricing disputes significantly affects the balance of power between tax authorities and multinational enterprises. This paper analyzes Indonesian Supreme Court rulings on transfer pricing cases to assess their implications for tax justice. Using case law analysis, the study examines standards of proof, evidentiary requirements, and interpretations of the arm’s length principle. The findings suggest that strict formalism often disadvantages tax authorities, particularly in cases involving complex cross-border transactions. The paper argues that judicial reluctance to engage with economic substance undermines effective enforcement. The global contribution of this study lies in highlighting how apex court jurisprudence shapes the practical enforceability of international tax rules. Indonesia’s experience offers lessons for strengthening judicial approaches to transfer pricing disputes in developing countries.
subject: Articles
  topic: section
subject: Transfer pricing; Supreme Court; tax disputes; tax justice; Indonesia
  topic: keywords
creator: Elijah Samuel Wiratama
rights: Copyright (c) 2025 Elijah Samuel Wiratama (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-04-29
publication date: 2025-04-29
doi: 10.65815/08kt7267

Supreme Court Jurisprudence on Tax Avoidance: A Critical Review of Indonesian Decisions
type: item
description: Judicial interpretation plays a decisive role in shaping tax justice outcomes. This paper examines selected Indonesian Supreme Court decisions addressing tax avoidance and aggressive tax planning. Using doctrinal jurisprudential analysis, the study evaluates judicial reasoning, consistency, and the application of economic substance principles. The findings reveal divergent interpretations and a tendency toward formalistic reasoning, which may limit the effectiveness of anti-avoidance rules. The paper argues that inconsistent jurisprudence undermines legal certainty and weakens deterrence against aggressive tax planning. The global contribution of this study lies in demonstrating how apex court jurisprudence influences the enforcement of tax justice in developing countries. Indonesia’s Supreme Court decisions provide comparative insights for jurisdictions seeking to strengthen judicial responses to tax avoidance. The study contributes to global debates on the role of courts in advancing equitable taxation by highlighting the importance of coherent doctrine and judicial capacity.
subject: Articles
  topic: section
subject: Tax avoidance; Supreme Court; jurisprudence; tax justice; Indonesia
  topic: keywords
creator: Raras Pitaloka Handayani
rights: Copyright (c) 2025 Raras Pitaloka Handayani (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-04-30
publication date: 2025-04-30
doi: 10.65815/15wa0c64

Taxation of Digital Advertising Services: Indonesia’s Policy Response and Global Relevance
type: item
description: Digital advertising services generate substantial economic value in market jurisdictions without requiring physical presence. This paper analyzes Indonesia’s taxation of digital advertising services and its implications for tax justice. Using normative legal analysis, the study evaluates the application of VAT and withholding taxes to foreign digital advertising providers. The findings suggest that while Indonesia’s measures enhance short-term revenue collection, enforcement challenges persist due to cross-border complexity and limited international coordination. The paper argues that unilateral digital taxation measures offer partial solutions but cannot fully address structural inequities in taxing digital value creation. The global contribution of this study lies in providing a developing country perspective on taxing digital advertising revenues. Indonesia’s experience informs international debates on reallocating taxing rights in the digital economy and highlights the limitations of interim solutions. The study contributes to global tax justice scholarship by emphasizing the need for coordinated international reforms that prioritize market jurisdictions.
subject: Articles
  topic: section
subject: Digital advertising tax; digital economy; withholding tax; tax justice; Indonesia
  topic: keywords
creator: Wulan Purnamasari
rights: Copyright (c) 2025 Wulan Purnamasari (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-01-31
publication date: 2025-01-31
doi: 10.65815/3x965f38

Digital Platforms and VAT Collection: Justice Implications of Indonesia’s Marketplace Regime
type: item
description: The expansion of digital platforms has fundamentally altered consumption patterns and challenged conventional VAT collection mechanisms. This paper examines Indonesia’s policy requiring digital marketplaces to collect and remit VAT on behalf of sellers. Using doctrinal and policy analysis, the study evaluates the effectiveness and equity implications of this regime for platform operators, small sellers, and consumers. The findings indicate that marketplace-based VAT collection significantly improves compliance and reduces revenue leakage in cross-border digital transactions. However, the policy also shifts administrative burdens onto platforms and small merchants, potentially exacerbating inequalities within the digital economy. The paper argues that VAT reforms targeting digital platforms must balance efficiency gains with taxpayer equity. The global contribution of this study lies in offering a concrete policy case from a developing economy addressing digital VAT challenges. Indonesia’s experience provides transferable lessons for countries seeking to tax digital consumption while preserving inclusivity. The study contributes to global tax justice literature by demonstrating that digital VAT design should incorporate proportional compliance obligations and targeted support mechanisms for small economic actors.
subject: Articles
  topic: section
subject: Digital VAT; platform taxation; marketplaces; tax justice; Indonesia
  topic: keywords
creator: Safira Zahra Amara
rights: Copyright (c) 2025 Safira Zahra Amara (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-01-31
publication date: 2025-01-31
doi: 10.65815/ackm3b26

Transfer Pricing Risks in the Mining Sector: Evidence from Indonesian Tax Disputes
type: item
description: Transfer pricing practices in the mining sector present significant risks to revenue mobilization in developing countries due to concentrated markets and limited price comparables. This paper analyzes Indonesian tax disputes involving multinational mining companies to assess the effectiveness of transfer pricing enforcement. Using doctrinal case law analysis, the study examines disputes related to related-party sales, cost allocation, and pricing of mineral exports. The findings reveal persistent information asymmetries between tax authorities and multinational enterprises, compounded by limited access to reliable comparables and technical expertise. These constraints weaken the enforcement of the arm’s length principle and reduce effective taxation of extractive profits. The paper argues that Indonesia’s experience highlights structural limitations of traditional transfer pricing methods in extractive industries. The global contribution of this study lies in providing sector-specific empirical evidence supporting calls for alternative profit allocation approaches, such as formulary or rent-based taxation. By situating Indonesian disputes within global tax justice debates, the study contributes to rethinking international tax rules for sectors characterized by high capital intensity and market concentration.
subject: Articles
  topic: section
subject: Transfer pricing; mining sector; tax disputes; tax justice; Indonesia
  topic: keywords
creator: Padma Kirana Jayanti
creator: Abigail Helena Saraswati
rights: Copyright (c) 2025 Padma Kirana Jayanti, Abigail Helena Saraswati (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-01-31
publication date: 2025-01-31
doi: 10.65815/bczkvx36

Palm Oil Taxation and Environmental Justice: Fiscal Policy Challenges in Indonesia
type: item
description: Indonesia is the world’s largest producer of palm oil, generating significant export revenues while simultaneously contributing to environmental degradation and social inequality. This paper examines Indonesia’s palm oil taxation policies through the combined lenses of tax justice and environmental justice. Using legal and policy analysis, the study evaluates export levies, corporate income taxation, and sector-specific fiscal incentives applied to palm oil producers. The findings indicate that existing tax instruments inadequately internalize environmental externalities and disproportionately favor large-scale corporate producers. Smallholders often face compliance burdens without corresponding fiscal support or redistributive benefits. The paper argues that the current fiscal framework fails to align revenue mobilization with sustainability and equity objectives. The global contribution of this study lies in linking commodity taxation with environmental justice concerns in developing countries integrated into global supply chains. Indonesia’s experience illustrates how sector-specific tax policy can reinforce global environmental inequality by allowing environmental costs to be externalized to local communities. The study contributes to international tax justice literature by advocating for integrated fiscal-environmental approaches that combine taxation, redistribution, and environmental accountability. These findings are relevant for other commodity-dependent economies seeking to design tax policies that support both development and sustainability goals.
subject: Articles
  topic: section
subject: Palm oil taxation; environmental justice; commodity taxation; sustainability; Indonesia
  topic: keywords
creator: Kenanga Larasati Cahyani
creator: Ratih Maheswari
rights: Copyright (c) 2025 Kenanga Larasati Cahyani, Ratih Maheswari (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-01-31
publication date: 2025-01-31
doi: 10.65815/frkbka56

Tax Justice in the Mining Sector: Indonesia’s Royalty and Income Tax Regime Revisited
type: item
description: The extractive industry constitutes a critical source of public revenue for resource-rich developing countries, yet it remains highly susceptible to tax base erosion and unequal rent distribution. This paper examines Indonesia’s mining sector taxation framework, focusing on the interaction between royalty regimes, corporate income taxation, and contractual arrangements with multinational mining corporations. Using doctrinal legal analysis combined with policy evaluation, the study assesses whether Indonesia’s fiscal design ensures an equitable allocation of natural resource rents between the state and private investors. The analysis reveals that stability clauses, preferential tax treatments, and limited renegotiation mechanisms significantly reduce the effective tax burden borne by mining companies. These features weaken vertical equity and constrain the state’s capacity to capture extraordinary profits during commodity booms. The paper argues that Indonesia’s experience reflects broader structural challenges faced by developing countries in taxing extractive industries within globalized capital markets. The global contribution of this study lies in providing sector-specific evidence on how legal and contractual design shapes tax justice outcomes in resource-dependent economies. By situating Indonesia’s mining tax regime within international debates on extractive sector governance, the paper offers policy-relevant insights for reforming royalty systems, strengthening progressive rent capture, and enhancing transparency. These findings contribute to global tax justice scholarship by emphasizing that equitable extractive taxation requires both robust legal frameworks and institutional capacity to renegotiate power asymmetries between states and multinational enterprises.
subject: Articles
  topic: section
subject: Mining taxation; extractive industries; resource rents; tax justice; Indonesia
  topic: keywords
creator: Retno Wening Kusumadewi
creator: Shakti Kirana Paramita
rights: Copyright (c) 2025 Retno Wening Kusumadewi, Shakti Kirana Paramita (Author) https://creativecommons.org/licenses/by/4.0
date: 2025-01-31
publication date: 2025-01-31
doi: 10.65815/mcbqwr27

Minimum Global Tax (Pillar Two) and Developing Country Interests: An Indonesian Assessment
type: item
description: The OECD/G20 Pillar Two Global Minimum Tax seeks to curb profit shifting by multinational enterprises. This paper evaluates the implications of Pillar Two for Indonesia’s taxing rights and fiscal sovereignty. Using doctrinal and policy analysis, the study assesses whether the income inclusion rule and undertaxed payments rule benefit developing countries. The findings suggest that Pillar Two primarily advantages residence countries hosting multinational headquarters. The global contribution of this study lies in offering a Global South critique of minimum taxation. Indonesia’s experience provides timely insights into the distributive consequences of emerging global tax rules. The paper contributes to global tax justice literature by questioning whether minimum taxation reforms adequately address developing country interests.
subject: Articles
  topic: section
subject: Global minimum tax; Pillar Two; tax justice; developing countries; Indonesia
  topic: keywords
creator: Sekar Ayu Puspitasari
creator: Elena Sophia Mahardini
rights: Copyright (c) 2024 Sekar Ayu Puspitasari, Elena Sophia Mahardini (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-10-31
publication date: 2024-10-31
doi: 10.65815/5z7g2656

Withholding Taxes on Cross-Border Payments and Developing Country Revenue Rights
type: item
description: Withholding taxes are a key mechanism for protecting source-based taxing rights in developing countries. This paper analyzes Indonesia’s withholding tax regime on cross-border payments, including interest, royalties, and services. Using doctrinal legal analysis, the study examines how tax treaties and international standards affect revenue outcomes. The findings indicate that treaty limitations significantly reduce source country taxing rights. The global contribution of this paper lies in highlighting structural constraints imposed by international tax agreements on developing countries. Indonesia’s experience offers insights for rethinking treaty policy from a tax justice perspective. The study contributes to global debates on rebalancing taxing rights between residence and source countries.
subject: Articles
  topic: section
subject: Withholding tax; tax treaties; source taxation; tax justice; Indonesia
  topic: keywords
creator: Inaya Humaira Lutfia
creator: Rizka Saputri
rights: Copyright (c) 2024 Inaya Humaira Lutfia, Rizka Saputri (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-10-31
publication date: 2024-10-31
doi: 10.65815/k942g831

Property Tax Reform and Local Fiscal Justice: Evidence from Indonesian Municipalities
type: item
description: Property taxation plays a critical role in local revenue generation and wealth redistribution. This paper examines property tax reforms in Indonesian municipalities and their implications for local fiscal justice. Using institutional and legal analysis, the study assesses valuation systems, rate structures, and compliance mechanisms. The findings reveal that outdated property valuations and political resistance constrain redistributive potential. The global contribution of this study lies in providing evidence from a decentralized developing country context. Indonesia’s experience highlights how administrative capacity and political economy factors shape local tax justice outcomes. The paper contributes to international scholarship on subnational taxation by demonstrating that effective property tax reform is essential for equitable local governance.
subject: Articles
  topic: section
subject: Property tax; local taxation; fiscal justice; decentralization; Indonesia
  topic: keywords
creator: Ikram Arya Samudra
creator: Indra Surya Permana
rights: Copyright (c) 2024 Ikram Arya Samudra, Indra Surya Permana (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-10-31
publication date: 2024-10-31
doi: 10.65815/9f4sz541

Informal Economy Taxation and Justice: Policy Trade-offs in Indonesia
type: item
description: The taxation of the informal economy presents significant challenges for equity and revenue mobilization in developing countries. This paper analyzes Indonesia’s policies toward taxing informal economic activities, particularly micro and small enterprises. Using normative policy analysis, the study evaluates trade-offs between administrative feasibility, revenue objectives, and social equity. The findings suggest that aggressive formalization strategies risk excluding vulnerable taxpayers, while excessive leniency undermines horizontal equity. The global contribution of this paper lies in illustrating the complexity of informal sector taxation within tax justice frameworks. Indonesia’s experience provides comparative insights for developing economies seeking inclusive tax systems. The study contributes to global debates by emphasizing that informal economy taxation requires context-sensitive approaches that balance fairness, capacity, and development objectives.
subject: Articles
  topic: section
subject: Informal economy; small enterprises; equity; tax justice; Indonesia
  topic: keywords
creator: Andi Luhur Pratama
creator: Caleb Adrian Mahardika Setiawan
rights: Copyright (c) 2024 Andi Luhur Pratama, Caleb Adrian Mahardika Setiawan (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-10-31
publication date: 2024-10-31
doi: 10.65815/4q9eyp24

Luxury Goods Taxation and Symbolic Redistribution: An Indonesian Case Study
type: item
description: Luxury goods taxation is frequently promoted as a progressive policy tool capable of enhancing redistribution and reinforcing tax justice. This paper critically examines Indonesia’s Luxury Goods Sales Tax (LGST) to assess whether such claims withstand empirical and institutional scrutiny. Through qualitative policy analysis, the study interrogates the tax’s normative foundations alongside its operational design, focusing on tax base definition, rate structures, valuation practices, and enforcement capacity. The findings demonstrate that Indonesia’s LGST is structurally ill-equipped to function as an effective redistributive instrument. The tax base is narrowly defined and inconsistently applied, allowing high-income consumption to escape taxation through product reclassification, under-valuation, and substitution effects. Weak administrative oversight and enforcement further exacerbate these shortcomings, resulting in limited revenue generation and minimal impact on income or wealth inequality. Rather than correcting vertical inequities, the LGST largely reproduces existing fiscal asymmetries. This paper advances the critical argument that luxury taxation in Indonesia operates primarily as a mechanism of symbolic redistribution—a policy that performs progressivity rhetorically while failing to deliver substantive equity outcomes. The novelty of the study lies in exposing the disconnect between the moral and political appeal of luxury taxes and their actual redistributive performance in a developing-country context. By challenging the uncritical adoption of luxury taxation as a fairness-enhancing measure, the paper contributes to broader debates on progressive taxation and fiscal capacity in emerging economies. It concludes that without fundamental reforms to tax design, valuation standards, and enforcement institutions, luxury taxes risk functioning as symbolic gestures that obscure deeper structural deficiencies in tax systems.
subject: Articles
  topic: section
subject: Luxury tax; redistribution; progressive taxation; tax justice; Indonesia
  topic: keywords
creator: Duma Rianton Simanjuntak
creator: Zidan Malik Arifin
rights: Copyright (c) 2024 Duma Rianton Simanjuntak, Zidan Malik Arifin (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-10-31
publication date: 2024-10-31
doi: 10.65815/mx75wz72

Automatic Exchange of Information and Developing Country Capacity: The Indonesian Experience
type: item
description: Automatic Exchange of Information has become a cornerstone of global tax transparency initiatives aimed at combating offshore tax evasion. This paper evaluates Indonesia’s implementation of AEOI from a capacity and tax justice perspective. Using institutional analysis, the study assesses legal preparedness, data utilization, and enforcement outcomes. The findings indicate that although AEOI enhances access to offshore financial information, limited analytical capacity and resource constraints reduce its practical effectiveness. The paper argues that transparency alone does not guarantee tax justice without the ability to translate information into enforcement actions. The global contribution of this study lies in highlighting capacity asymmetries embedded in international transparency regimes. Indonesia’s experience demonstrates that developing countries require sustained technical assistance and institutional investment to benefit fully from global information exchange. The study contributes to international tax scholarship by reframing transparency as a justice issue rather than a purely technical reform.
subject: Articles
  topic: section
subject: Automatic exchange of information; tax transparency; capacity building; tax justice; Indonesia
  topic: keywords
creator: Faris Azzam Nurhadi
creator: Togar Sahat Panjaitan
rights: Copyright (c) 2024 Faris Azzam Nurhadi, Togar Sahat Panjaitan (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-04-30
publication date: 2024-04-30
doi: 10.65815/91e8dt14

Transfer Pricing Disputes and Tax Justice: Lessons from Indonesian Court Decisions
type: item
description: Transfer pricing disputes are central to tax justice debates in developing countries due to their implications for revenue allocation and corporate accountability. This paper analyzes selected Indonesian tax court decisions involving transfer pricing disputes to evaluate judicial approaches to enforcing the arm’s length principle. Using doctrinal case law analysis, the study examines evidentiary standards, judicial reasoning, and institutional constraints. The findings reveal that limited access to comparable data and information asymmetries disadvantage tax authorities in disputes with multinational enterprises. Judicial reliance on formal documentation often weakens substantive assessments of economic reality. The global contribution of this paper lies in demonstrating how domestic judicial capacity shapes the effectiveness of international tax rules. Indonesia’s experience provides comparative insights for emerging economies facing similar challenges in transfer pricing enforcement. The study contributes to global tax justice literature by emphasizing that legal transplantation of international standards must be accompanied by institutional strengthening to ensure fair outcomes.
subject: Articles
  topic: section
subject: Transfer pricing; tax disputes; multinational enterprises; tax justice; Indonesia
  topic: keywords
creator: Lucas Jonathan Prasetya
creator: Raja Parsaoran Sihombing
rights: Copyright (c) 2024 Lucas Jonathan Prasetya, Raja Parsaoran Sihombing (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-07-31
publication date: 2024-07-31
doi: 10.65815/0tvwrz72

Tax Amnesty Programs and Moral Hazard: Evaluating Indonesia’s Repeated Amnesty Experience
type: item
description: Tax amnesty programs are frequently employed to increase short-term revenue and expand the tax base, yet their long-term implications for tax justice remain contested. This paper examines Indonesia’s repeated tax amnesty initiatives to assess their impact on taxpayer behavior, compliance norms, and perceptions of fairness. Using legal and policy analysis, the study evaluates whether repeated amnesties undermine horizontal equity by rewarding non-compliant taxpayers. The findings indicate that while amnesties generate temporary revenue gains, their recurrence risks creating moral hazard and eroding trust in the tax system. Compliant taxpayers may perceive unequal treatment, weakening voluntary compliance. The global contribution of this paper lies in providing evidence from a developing country context where tax amnesties are institutionalized rather than exceptional. Indonesia’s experience offers cautionary lessons for policymakers worldwide considering amnesties as a fiscal tool. The study contributes to global tax justice debates by highlighting the tension between revenue pragmatism and fairness, arguing that sustainable compliance requires consistent enforcement and credible sanctions rather than repeated forgiveness mechanisms.
subject: Articles
  topic: section
subject: Tax amnesty; moral hazard; compliance; tax fairness; Indonesia
  topic: keywords
creator: Ahmad Surya Ananta Putra
rights: Copyright (c) 2024 Ahmad Surya Ananta Putra (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-07-31
publication date: 2024-07-31
doi: 10.65815/8wf84421

VAT Rate Increase and Regressivity: Evidence from Indonesia’s Consumption Tax Reform
type: item
description: Value-added tax constitutes a central pillar of revenue mobilization in developing countries, yet its regressive effects raise persistent tax justice concerns. This paper analyzes Indonesia’s recent VAT rate increase and its distributional implications for different income groups. Using normative policy analysis supported by secondary empirical evidence, the study evaluates the extent to which compensatory social spending mitigates adverse welfare impacts. The findings demonstrate that although VAT reform strengthens fiscal capacity, existing compensation mechanisms only partially offset the burden borne by low-income households. The paper argues that reliance on consumption taxation without sufficient redistribution risks deepening inequality. The global contribution of this study lies in offering empirical insights from a large emerging economy undergoing consumption tax expansion. Indonesia’s experience provides comparative lessons for countries pursuing similar reforms under fiscal pressure, emphasizing the importance of integrating VAT policy with targeted redistribution. The paper contributes to global tax justice literature by reinforcing the argument that consumption tax reforms must be evaluated not only on efficiency grounds but also through equity-based frameworks that account for income distribution and social protection adequacy.
subject: Articles
  topic: section
subject: Value-added tax; regressivity; consumption tax; tax justice; Indonesia
  topic: keywords
creator: Kadek Arjuna Wijaya
creator: Rania Alifa Nurul
rights: Copyright (c) 2024 Kadek Arjuna Wijaya, Rania Alifa Nurul (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-07-31
publication date: 2024-07-31
doi: 10.65815/5f7af959

The Omnibus Law on Taxation and Tax Justice: Assessing Equity Implications in Indonesia
type: item
description: Indonesia’s Omnibus Law on Taxation represents a major fiscal reform aimed at enhancing investment competitiveness and improving revenue performance. This paper examines the tax justice implications of the Omnibus Law, with particular attention to corporate income tax rate reductions, expanded tax incentives, and adjustments to value-added tax policy. Using doctrinal legal analysis and policy evaluation, the study assesses whether the reform advances distributive equity or exacerbates structural inequality. The findings indicate that while the Omnibus Law improves Indonesia’s attractiveness to capital, its benefits are unevenly distributed, favoring capital-intensive sectors and higher-income taxpayers. Reduced corporate tax rates and broadened incentives risk weakening vertical equity and constraining long-term revenue capacity. The paper argues that omnibus-style tax reforms in developing countries often prioritize efficiency and competitiveness over equity considerations. The global contribution of this study lies in providing a detailed case analysis of how comprehensive tax reforms in emerging economies interact with global tax competition pressures. Indonesia’s experience offers broader lessons for policymakers in developing countries considering similar legislative strategies, highlighting the need to embed tax justice principles explicitly within large-scale reform frameworks to ensure that competitiveness objectives do not undermine equitable fiscal outcomes.
subject: Articles
  topic: section
subject: Omnibus Law; tax reform; distributive justice; equity; Indonesia
  topic: keywords
creator: Made Satya Wira Adnyana
creator: Parvati Nandini Cendrawati
creator: Natalia Veronika Prameswari
rights: Copyright (c) 2024 Made Satya Wira Adnyana, Parvati Nandini Cendrawati, Natalia Veronika Prameswari (Author) https://creativecommons.org/licenses/by/4.0
date: 2024-07-31
publication date: 2024-07-31
doi: 10.65815/psch9981