Investor Presentaiton
MINISTRY OF FINANCE
INDONESIA
FAVORABLE DEMOGRAPHIC CHANGES AS AN OPPORTUNE MOMMENT FOR TAX REFORM
Increasing middle-class group could be capitalized to strengthen government revenues in the future
The share of the aspiring and middle-class group
continues to increase (%)
7,0
10,2
16,6
22,5
41,2
44,2
44,5
47,0
22,5%
Share of Middle Income
Population in 2018
increased 15.5
ppt from total
population
in 2002
Consumption of the aspiring and middle-class group
increases significantly (IDR Trillion)
350
300
250
250
200
51,8
45,5
38,5
30,0
Source: Workl Bank (2020)
Rp Triliun
150
100
50
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Poor and Vulnerable
Aspiring Middle Class Middle Class Upper Class
Through tax reforms, state revenue could be strengthened
along with favorable demographic changes.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Poor and Vulnerable
Aspiring Middle Class
Middle Class
Stronger consumption on the back of rising middle-
class group could boost tax revenue, particularly VAT
and personal income tax.
57View entire presentation