DKI Jakarta Provincial Government Increases Tax Administration Digitization

Photo: Doc. Antara

JAKARTA - The DKI Jakarta Provincial Government continues to improve the digitization of tax administration to support Jakarta's competitiveness into a global city after the transfer of the State Capital (IKN) to East Kalimantan.

"The DKI Jakarta Provincial Government continues to develop regional tax administration through digitization which is expected to increase efficiency and transparency in tax management," said Head of the Economic and Finance Bureau of the DKI Jakarta Provincial Secretariat (Setda) Mochamad Abbas in a statement in Jakarta, quoted from Antara, Saturday, August 3.

Abbas said that effective and efficient tax administration is very important to increase regional tax revenues. "The fiscal continuity of a city strongly supports financing development needs," he said.

He said Jakarta was trying to become a globally competitive city after the transfer of IKN to East Kalimantan (Kaltim).

Based on the Global Cities Index (GCI), Jakarta ranks 74th out of 156 cities. The index assesses a city through five aspects, namely economy, human resources, quality of life, environment and government.

Meanwhile, according to the Global Power City Index (GPCI), Jakarta is in 45th position out of 48 cities, far below London, New York, Tokyo, Paris, and Singapore, which are ranked top five.

"Although Jakarta has shown significant progress, improvements are needed in various aspects to reach a higher rating, including regional tax administration," he said.

In order to accelerate Jakarta's competitiveness in the global arena, the Bureau of the Economy and Finance of the DKI Jakarta Provincial Secretariat provides assistance in the formulation of financial policies related to digitizing regional tax administration as a first step in collecting policy formulation materials.

In collaboration with DDTC Fiscal Research &Advisory, the policy formulation activity collected a "best practice" for tax digitization in global cities to be compared to the digitization of regional taxation implemented in the DKI Jakarta Provincial Government.

"Hopefully the results of this study will improve the joint effort in realizing Jakarta as a global, competitive city equivalent to other big cities in the world," said Abbas.