A Qualitative Perspective on The Implementation of Indonesian Dividend Tax Exemption: Hopes and Challenges

The Indonesian government has implemented a tax exemption policy on dividends under certain conditions to stimulate investment, which is expected to drive economic growth. This study seeks to examine how the Indonesian government's expectations can be realized and what challenges arise in its implementation. Using a qualitative approach through in-depth interviews, this research explores insights from various stakeholders, including regulators, professional associations, taxpayers, and academics. The novelty of this study lies in its focus on examining the policy within the Indonesian context and its use of a qualitative approach through in-depth interviews, which differs from previous studies that were mostly conducted in developed countries and predominantly employed a quantitative approach. The interview findings, analyzed using NVivo software, indicate that the dividend tax exemption is not the primary factor influencing corporate dividend distribution decisions. At the individual level, however, the exemption incentivizes investment, as reinvestment is a prerequisite for obtaining the tax relief. In terms of implementation, the challenges faced include several key aspects, such as administrative burdens and the need for monitoring to ensure compliance with the established requirements. In this regard, data integration and coordination among stakeholders are critical concerns.