The devolution of the land and building tax in Indonesia

The devolution of the land and building tax in Indonesia

Download PDF 4.8 MB

von Haldenwang, Christian / Alice Elfert / Tobias Engelmann / Samuel Germain / Gregor Sahler / Amelie Stanzel Ferreira
Studies 89 (2015)

Bonn: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

ISBN: 978-3-88985-673-9
Price: 10 €

In order to stimulate revenue mobilisation and local autonomy, some governments decentralise property taxes to the municipal level. Indonesia did so in a gradual process between 2010 and 2014, transferring responsibility for the rural and urban land and building tax to its nearly 500 cities and districts. But has this so-called devolution led to strengthening the property tax as a source of public revenue? The present study explores whether decentralisation leads to a better use of the land and building taxation potential in Indonesia.
The study holds that initial evidence at an aggregate level points to an increase in property tax collection after decentralisation. A more detailed look at individual cases reveals, however, that local governments shy away from making full use of the powers given to them by the new decentralisation law. The study analyses the implementation of the property tax reform at the local level and derives lessons from the initial outcomes of the current process. It combines a macro-level view with in-depth case studies in seven Indonesian cities and districts. Further, it discusses options for broadening local property tax collection in the future by extending it to the plantations sector.


About the author

Haldenwang, Christian von

Political Scientist

Christian von Haldenwang

Further experts

Breuer, Anita

Political Scientist 

Houdret, Annabelle

Political Scientist 

Koch, Svea

Social Scientist 

Leininger, Julia

Political Scientist 

Mehl, Regine

Political Scientist 

Messner, Dirk

Political Scientist 

Schiller, Armin von

Political Scientists 

Current Publications

The European Fund for Sustainable Development: changing the game?

Lundsgaarde, Erik
Discussion Paper 29/2017

The EU Migration Partnership Framework: time for a rethink?

Castillejo, Clare
Discussion Paper 28/2017

The eleventh WTO Ministerial Conference: the future of multilateralism is at stake

Berger, Axel
The Current Column of 11 December 2017

More development - more migration? The “migration hump“ and its significance for development policy co-operation with sub-Saharan Africa

Angenendt, Steffen / Charles Martin-Shields / Benjamin Schraven
Externe Publikationen of 05 December 2017

Mehr Entwicklung - mehr Migration? Der »migration hump« und seine Bedeutung für die entwicklungspolitische Zusammenarbeit mit Subsahara-Afrika

Angenendt, Steffen / Charles Martin-Shields / Benjamin Schraven
Externe Publikationen of 05 December 2017

Brauchen wir auch eine Obergrenze für Klimaflüchtlinge?

Schraven, Benjamin
Externe Publikationen of 05 December 2017