Democratizing Management of National Financial/Wealth: Legal Studies About Public Participation Law in Indonesia

DOI

10.2991/978-2-38476-529-4_17How to use a DOI?

Keywords

Public Participation; Tax; Democratic Governance; Fiscal Policy; National Wealth Management

Abstract

Democracy practices in Indonesian Law reveals substantial gaps between constitutional principle and administrative reality which there’s limited genuine public participation in policy formulation. The gaps persist despite decades of tax reform and continue despite Indonesia’s constitutional commitment to democratic governance. This research discuss about the urgency of public participation in taxation law-making in guarantee democracy process of national wealth management and the model legal framework from best practices to improve the quality of Indonesia democracy taxation law-making. Employing a juridical normative research method, this study analyzes Indonesia’s 1945 Constitution, existing statutory frameworks, and international best practice models from Brazil, Kenya, and the Government Finance Initiative (GIFT) principles. Democratic theory establishes that meaningful public participation in taxation law-making ensures democratic legitimacy through the consent principle, accountability mechanisms, representative voice, equitable burden distribution, and reciprocity between citizens and government. Empirical evidence from behavioral economics experiments, large-scale surveys (Kenya’s 6,322-respondent evaluation), and longitudinal studies (Brazil’s participatory budgeting programs) demonstrates that public participation substantially improves tax compliance rates, increases government revenue collection, and enhances tax morale among citizens. However, Indonesia’s current fiscal governance reveals significant implementation gaps: limited knowledge among legislators regarding taxation, minimal meaningful participation by non-business constituencies, insufficient transparency in fiscal information, and weak accountability mechanisms. The paper identifies optimal legal framework elements from international best practices, including constitutional recognition of participation rights, guaranteed fiscal allocations for participatory processes, binding decision-making authority, transparent budgetary procedures, and enforcement mechanisms.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Drifarrosa Aisy Aufanuha Machfudz
AU  - Waluyo Waluyo
PY  - 2025
DA  - 2025/12/28
TI  - Democratizing Management of National Financial/Wealth: Legal Studies About Public Participation Law in Indonesia
BT  - Proceedings of the International Conference on Democracy and National Resilience 2025 (ICDNR 2025)
PB  - Atlantis Press
SP  - 200
EP  - 210
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-529-4_17
DO  - 10.2991/978-2-38476-529-4_17
ID  - Machfudz2025
ER  -