THE INDONESIAN TAX EDUCATION PROGRAM: AN INSTITUTIONAL THEORY PERSPECTIVE

Research output: Contribution to journalArticlepeer-review

Abstract

Despite its expanding economy, Indonesia has historically grappled with a low tax ratio. In 2020, the tax-GDP ratio stood at 10.1%, lower than that of its Southeast Asian peers such as Malaysia, Singapore, Thailand, and the Philippines. To improve tax compliance, the Indonesian government has implemented several initiatives, including a national tax education program launched in 2014. A cornerstone of this initiative is the ‘Pajak Bertutur (Patur) [‘tax enunciates’] program, which organizes one-day events at schools where tax officials teach students about taxation. To evaluate the Patur program, this study employed Scott's Institutional Theory, which delineates organizations into three pillars: regulative, normative, and cultural-cognitive. Given that the program is publicly funded and requires substantial resources, particularly from the tax authority, it is crucial for the Indonesian government to scrutinize its implementation and potential for improvement. Through a series of in-depth interviews and focus group discussions with tax officials and teachers, our research reveals that the synchronization of the three organizational elements is pivotal for the promotion of an effective tax education program. Findings suggest that while the Patur program is supported by a robust normative pillar, it is hampered by a lack of regulative pillar, leading to implementation discrepancies. This regulatory deficit, however, may inadvertently allow the program to be more adaptable to the diverse needs of schools, thereby strengthening the cultural-cognitive pillar and increasing overall program effectiveness.

Original languageEnglish
Pages (from-to)1-15
JournalJournal of the Australasian Tax Teachers Association
Volume18
Issue number1
Publication statusPublished - Jan 2023

Keywords

  • tax education
  • tax awareness
  • institutional theory

Fingerprint

Dive into the research topics of 'THE INDONESIAN TAX EDUCATION PROGRAM: AN INSTITUTIONAL THEORY PERSPECTIVE'. Together they form a unique fingerprint.

Cite this