The Role of Taxpayers, Compliance Behavior, and Revenue in Indonesia’s Economic Growth

Abstract

This theoretical study examines the interconnected roles of taxpayers, compliance behavior, and tax revenue in shaping Indonesia’s economic growth. Employing a qualitative-descriptive approach based on document analysis and theoretical integration, this research synthesizes behavioral economics, institutional theory, and fiscal development perspectives. The study aims to answer three core questions: the influence of taxpayers on fiscal systems, how compliance behaviors affect revenue generation, and the contribution of tax revenue to economic growth. Findings reveal that taxpayer behavior is shaped by trust in institutions, perceived fairness, and cultural norms, all of which are critical in promoting voluntary compliance. Compliance behavior, in turn, significantly determines fiscal capacity, as it affects the reliability and sufficiency of tax collection. Finally, tax revenue, when allocated transparently and equitably, supports public investment and macroeconomic stability, contributing to inclusive and sustainable development. The research proposes an integrative framework that connects micro-level taxpayer behavior with macroeconomic outcomes, offering theoretical and practical implications. It highlights the importance of trust-building, digital innovation, and participatory fiscal governance to improve tax performance. The study contributes to ongoing discourse on public finance in developing economies and provides a foundation for policy strategies aiming to strengthen Indonesia’s economic resilience through tax reform.