Implementing property tax reform in developing countries: lessons from the property tax in Indonesia

Indonesia is currently undergoing a major property tax reform. The reform has been undertaken in two steps. First, a new Land and Building Tax was enacted in 1986. This new law dramatically simplified the property tax structure and replaced seven different land-related taxes. Second, the government initiated a major institutional exercise to strengthen property tax administration. Property tax revenues have increased dramatically from Rp.154 billion in 1985/86 to over Rp.900 billion in 1991/92. This paper analyzes the results of the Indonesian property tax reform and identifies lessons for developing countries interested in strategically implementing property tax reform. -from Author

Duke Scholars

Author Roy Kelly Sanford School of Public Policy