Strengthening Government Technology Encourages Tax Revenue Of Up To IDR 1,500 Trillion

JAKARTA - Chairman of the Indonesian National Economic Council, Luhut Binsar Pandjaitan, emphasized that strengthening Government Technology (GovTech) such as the Core Tax service implementation program can encourage state revenue of up to 6.4 percent of Gross Domestic Product (GDP) or equivalent to IDR 1,500 trillion.

"If we can do what the (Core Tax) program is, we can get 6.4 percent of the GDP or around Rp. 1,500 trillion," he said at a press conference, Thursday, January 9.

Meanwhile, GovTech is an institution that will be tasked with mobilizing the integration of government digital services that have been spread across thousands of platforms/applications so that the existence of GovTech can make it more efficient because all data from government agencies and the population of Indonesia is synchronized on a data platform, and can be accessed and monitored in real time.

Luhut explained that the DEN specifically provides full support to the Directorate General of Taxes at the Ministry of Finance in implementing Core Tax which is the backbone of national tax reform.

According to Luhut, this system will increase taxpayer compliance, so as to increase state revenue.

In addition, Luhut conveyed that the version 6.0 of the e-catalogue system which is integrated with cross-sectoral data from the government will help reduce the potential for budget waste, improve the quality of procurement, and ensure efficiency in state spending.

Luhut emphasized that digitalization is not only a solution to increase efficiency, but also an important step to build public trust in governance.

"We fully support the implementation of Core Tax and other digitalization programs to ensure that every policy provides real benefits to society," he said.

Luhut ensured that the DEN was committed to continuing to support the digital transformation agenda in line with national priorities.

According to Luhut, the strategic steps that have been conveyed to the President are believed to strengthen Indonesia's stronger, transparent, inclusive and sustainable economic foundations.

In addition, Luhut emphasized that the program to strengthen GovTech was included in President Prabowo's 53 quick win and that these quick win programs were not just discourse and would be implemented in the near future.

"So, we are preparing projects that already exist in pipelines, one of which is technology yesterday which was version 6 of the E-Catalogue, later next week there will be more genome sequencing at the Ministry of Education and Agriculture which has also been prepared for 3 years, actually, more or less since the time at Marves. Well, it will also be working soon, "he said.