Between Amnesty and Audit: Tax Policy Consistency, Institutional Trust, and the Future of Tax Compliance in Indonesia

ABSTRACT: Indonesia’s experience with tax amnesty presents a major policy paradox. The government has relied on tax amnesty and voluntary disclosure to expand the tax base and raise short-term revenue. Yet, repeated amnesty programs and subsequent audit initiatives have raised concerns about policy consistency and institutional credibility. This article uses a qualitative literature review rather than a systematic literature review to examine how the consistency of Indonesia’s tax-amnesty policy affects trust in the tax system and, in turn, taxpayer compliance. Drawing on journal articles, official policy materials, and policy commentaries published mainly since 2020, the article synthesizes evidence on three issues: the conceptual foundations of tax amnesty, the indicators of amnesty success, and the implications of post-amnesty enforcement for taxpayer trust. The analysis shows that Indonesia’s first tax amnesty in 2016–2017 generated exceptional short-term outcomes, but the 2022 Voluntary Disclosure Program attracted far fewer participants and lower declared assets, indicating a decline in confidence and a narrower policy scope. The 2026 policy discourse on re-examining tax amnesty and PPS participants intensified concerns that the state may be shifting from a trust-building to a revenue-maximizing posture. This weakens the perceived credibility of amnesty promises and risks reinforcing the public narrative that tax amnesty is a trap rather than a pathway to normalized compliance. The article concludes that Indonesia needs a more consistent post-amnesty framework, clearer rules for follow-up audits, and a stronger trust-based approach to tax administration to achieve durable increases in voluntary compliance.