Project for Indonesian Tax Administration Reform (PINTAR)

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The Tax Administration Reform Project (PINTAR) for Indonesia aims to: a) increase taxpayer compliance by increasing the efficiency and effectiveness of the Directorate General of Tax (DGT); and b) improve good governance in tax administration by strengthening transparency and accountability mechanisms. There are four components to the project. The first component of the project is increasing the efficiency of taxpayer data collection and management. This component aims at improving taxpayer registration, returns processing, taxpayer accounts management, documents management, and Information and Communications Technology (ICT) infrastructure. The second component of the project is human resource management and development. This component will support and strengthen ongoing reforms in DGT by addressing basic capacity building needs related to the main functions and improving training capacity. It will also support the improvement of human resource policies and strengthen anti-corruption policies and mechanisms. The third component of the project is strengthening compliance management operations. This component will increase the efficiency of selected core operational functions of tax administration. It will concentrate on: a) tax audit, introducing risk-based audit selection, reforming business processes for desk and field audit, computerizing processes supporting the tax audit function, and improving the audit planning and monitoring process; and b) arrears collection, in particular enhancing the arrears monitoring system, reforming business processes for arrears collection, and enhancing the collection enforcement ICT system. The fourth and final component of the project is project and change management. This component will support the management of the project, through technical assistance, in particular a change management program including improving internal and external communications and feedback surveys, familiarization and specific transition training.