Alif Ilham Fajriadi, Jakarta – Public Policy Director of the Center of Economic and Law Studies (Celios), Media Wahyudi Askar, has criticized the government's policy of paying the income tax of members of parliament and state officials.
His remarks come amid public debate following news that House of Representatives' lawmakers recently received an additional Rp50 million per month in housing allowances.
Askar explained that the state's responsibility to cover these taxes has been in place for more than a decade, based on Government Regulation No. 80 of 2010 on Income Tax Deduction Rates and the Imposition of Article 21 Income Tax on Income Charged to the State Budget (APBN) or Regional Budgets (APBD).
"This regulation is very different from practices in many developed countries, where officials pay their own taxes. In those countries, it's more egalitarian. Vveryone is treated equally, whether ordinary citizens or state officials," Askar told Tempo on Monday, August 25, 2025.
Call for fiscal justice
Askar urged the government to revise the regulation in order to promote fiscal justice. He argued that the change would also reduce the state's expenditure burden, since officials, many of whom earn tens or even hundreds of millions of rupiah each month, are fully capable of paying their own taxes without drawing on public funds.
"In Indonesia, state officials don't pay their taxes in full because the government covers them. This contrasts with private employees who, despite their modest salaries, are still required to pay income tax," he said.
Beyond the tax policy, Askar also highlighted the heavy burden posed by allowances granted to officials. He noted that while their basic salaries are not particularly high, various allowances inflate their total compensation and weigh heavily on the state budget.
"So far, these allowances have been funded by the APBN. If the government is serious about fiscal discipline, it needs to reduce them," he said.
Askar warned that continuing to provide high allowances and covering officials' taxes risks eroding public trust. Citizens with low incomes, he said, will increasingly feel they are treated unfairly compared to high-ranking officials who enjoy generous state-funded benefits.
"Everyone should be equal in the eyes of the state. Officials with high incomes should not still receive allowances or have their taxes paid by the government. The message of justice would resonate far more if the state reformed this policy," Askar said.
Source: https://en.tempo.co/read/2042919/dpr-members-taxes-covered-by-government-celios-unfair-for-citizen