WILLIAMSON MODEL: AN APPLICATION OF INSTITUTIONAL TRANSFORMATION IN THE INDONESIAN DGT

A reform of tax administration in Indonesia has been carried out in several stages from 1983 to 2009. However, the changes are limited to the tax system of the DGT, it being the tax governing body in Indonesia, which has still has not managed to meet the tax revenue target (reflected through a tax r...

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Bibliographic Details
Published inJournal of Indonesian economy and business Vol. 29; no. 3; p. 259
Main Authors Jaya, Wihana Kirana, Rahajeng, Anggi, Bastian, Indra
Format Journal Article
LanguageEnglish
Published Yogyakarta Universitas Gadjah Mada, Faculty of Economics & Business 01.09.2014
Subjects
Compliance
Economic development
Economic models
Expenditures
Law enforcement
Regulation
State budgets
Studies
Tax collections
Tax reform
Tax revenues
Tax services
Taxation
Indonesia
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Summary:A reform of tax administration in Indonesia has been carried out in several stages from 1983 to 2009. However, the changes are limited to the tax system of the DGT, it being the tax governing body in Indonesia, which has still has not managed to meet the tax revenue target (reflected through a tax ratio). A lack of authority caused the DGT (DGT) to face some difficulties in reaching the target and demonstrating the expected performance. The goal of this paper is to stress the needs of institutional transformation in DGT. By using the Williamson Model, this study focuses on evaluating the DGT institutionally and creating an alternative institutional transformation of the DGT. The international and domestic results of ascertaining best practices conclude that the DGT needs to change gradually, not with a 'big bang', and by providing the more flexible authority by remaining in the structure of Traditional Department or Single Directorate in the Ministry of Finance (SDMOF) which would lead to an organization structure which is semi-autonomous or a Unified Semi-autonomous Body (USB) that covers all the systems of taxation such as service, assurance, law enforcement and supporting roles.
ISSN:2085-8272
2338-5847