Jayanty Nada Shofa, Jakarta – Indonesia's 50 richest people own as much wealth as 55 million people, or around 20% of the population, according to a new report by think-tank Celios, painting a grim picture of the country's economic conditions.

Inequality is widening in Southeast Asia's largest economy, a country home to over 280 million people, as only a few business elites control the nation's wealth.

Celios said that Indonesia's top 50 trillionaires would make Rp 9.36 million ($545.78) every second. To put it in perspective, the average Indonesian worker's wage only edges up by Rp 1.47 or not even a cent a second. It is already way above the minimum monthly wage in the country's capital Jakarta, which only reaches Rp 5.7 million (around $332). It would take 2.8 centuries for a worker to reach their level.

On top of the ranking is the Hartono family, who owns the cigarette giant Djarum, as they enjoy a fortune of Rp 650 trillion or $38 billion. Followed by energy mogul Prajogo Pangestu (Rp 483 trillion/$28 billion) and conglomerate owner Widjajas (Rp 478 trillion/$27.8 billion).

The report calls for a 2% wealth tax on Indonesia's 50 richest people. Estimates show that this move can amass state receipts worth Rp 93 trillion ($5.4 billion) per annum. A progressive wealth tax of 1-2%, starting with those who possess Rp 84 billion (roughly $4.9 million) in assets, can generate Rp 142.2 trillion (almost $8.3 billion) in state revenue.

"The super-rich have not proportionally contributed to taxes. The energy and climate crises have turned into a windfall for a handful of conglomerates in extractive industries such as mining and palm oil. It is about time we narrow this gap with the wealth tax," Celios executive director Bhima Yudhistira said Wednesday.

"There are so many ways we can use the money. For instance, a comfortable and affordable public transport across the archipelago. We can also build our energy security based on renewables," the analyst said.

The government has signaled its intent in taxing the country's super-affluent. A roadmap by the Finance Ministry's tax office shows that they plan on "drafting regulations for a fairer taxation on 'high wealth individuals'" by 2028.

Source: https://jakartaglobe.id/business/indonesias-1-50-richest-as-wealthy-as-55-million-peopl