The government has issued Presidential Regulation No. 40 Year 2018 regarding the Revamp of Tax Administration System which allows the Directorate General of Taxation (DGT) to purchase a new information technology system. According to President Joko Widodo, the revamp of tax administration system is aimed at realizing a strong, credible, and accountable taxation institution which has an effective and efficient business process.
According to the Director General of Taxation, the cost needed for the revamp of tax administration system reaches Rp3.1 trillion by using multiyear budget for 7 years.
This year, Rp25 billion is prepared as an initial fund to purchase a system which has been used in various countries. However, 20% of the system will be adjusted with DGT’s needs.
According to plan, the system will be used for the first time by DGT in the 2nd quarter of 2021 to receive tax returns, payment, and registration.