This report from CELIOS exposes the deepening wealth divide in Indonesia despite macroeconomic growth. It shows that the top 50 richest Indonesians hold wealth equivalent to that of 50 million citizens, with the post-pandemic years amplifying disparities across income, assets, and opportunity. Structural issues such as corporate monopolies, regressive taxation, and extractive industries drive this inequality, leaving the poor and informal workers vulnerable to inflation and unstable livelihoods. The report also highlights the environmental toll of elite wealth accumulation, linking land control and deforestation to worsening social outcomes.
We propose redistributive reforms through wealth taxes, carbon levies, and stronger labor protections. They calculate that addressing tax evasion and implementing progressive fiscal tools could fund public services, from free meals to affordable housing, on a national scale. Ultimately, they argue that reducing inequality is not a moral luxury but an economic necessity to sustain growth and democracy in Indonesia.
Bibliography:
Askar, M. W., Muhammad, G. D., Darmawan, J., Imaduddin, A. H., & Yudhistira, B. (2024). Indonesia Inequality Report 2024: Private Jets for the Rich, Bicycles for the Poor. Center of Economic and Law Studies (CELIOS).