Funding Indonesia’s Mission 2045
Indonesia’s economic growth relies heavily on domestic revenue mobilization, particularly in financing key sectors such as infrastructure, education, and healthcare. The latest World Bank report highlights the need for comprehensive tax reforms to support the country’s Vision 2045, which aims to position Indonesia as a high-income nation.
Strengthening tax policies and improving compliance are seen as crucial steps in addressing revenue shortfalls and ensuring sustainable development. Despite progress, tax collection remains below its full potential, with challenges stemming from policy gaps, administrative inefficiencies, and tax non-compliance.
To address these issues, the report recommends expanding the tax base, enhancing enforcement mechanisms, and leveraging digital technology to improve efficiency. Implementing these reforms will be key to securing long-term funding, allowing Indonesia to achieve its ambitious development targets and sustain economic resilience.