Headline:
Government to Tighten Monitoring of Indonesians’ Activities to Boost Tax Revenue
Subhead:
New Govtech System to Integrate Various Digital Platforms, Launching August 2025
Byline:
CNBC Indonesia
Body:
Jakarta – The Indonesian government is set to intensify its monitoring of citizens’ activities, aiming to enhance tax revenue collection. This initiative has been announced by the Head of the National Economic Council (DEN), Luhut Binsar Pandjaitan.
In a recent press conference, Pandjaitan revealed plans to introduce a state-of-the-art system called Govtech Indonesia as a game-changer for the nation’s tax landscape. Scheduled to launch on August 17, 2025, the Govtech platform will oversee all electronic transactions and data, including travel movements, to encourage tax compliance.
"The President has agreed to prioritize this system, and we’re working around the clock to ensure it’s functional by August," Pandjaitan said, emphasizing the system’s potential to transform Indonesia’s tax landscape significantly.
The Govtech system, developed by local tech talent, will aggregate and harmonize various digital platforms under the government’s purview. These include Coretax, Simbara,SISS, OSS, immigration, regional digital ID, and Customs and Excise data systems. Additionally, it will link with systems managing public spending, such asوسیthean direct cash transfers.
With a design comparable to the PeduliLindungi app used during the COVID-19 pandemic, the Govtech system will track citizens’ movements to assess their spending power and track consumption-based taxes. It will also interconnect with e-commerce platforms, enabling the government to broaden its taxpayer base and block non-compliant migrants or businesses from using certain services like obtaining passports or business permits.
Before the system’s launch, the Indonesian government plans to send a team to India to learn from their experiences implementing a similar system in the past decade. This learning process aims to minimize potential errors and ensure a smoother adoption in Indonesia.
The Govtech initiative seeks to make tax compliance more accessible and convenient for citizens, fostering a more robust and equitable tax system in Indonesia.
Tagline:
Empowering Indonesia through seamless digital governance
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