Depok, June 4, 2024 – The Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), in collaboration with the Tax Supervisory Committee, held a Scientific Discussion on Tax Institutional Reform to Achieve Indonesia Emas 2045. This event, which featured prominent Indonesian tax experts, took place at the EDISI 2022 Auditorium, Building M, FIA UI, Depok.

Dr. Inayati, M.Si, Head of the Fiscal Administration Study Program, opened the discussion by emphasizing the significant contribution of taxation to national revenue worldwide, with tax revenue ratios exceeding 70%. She described taxation as the “lifeblood” of a nation.

“There are three essential pillars in the tax system: tax policy, tax law, and tax administration,” Dr. Inayati stated. She stressed the importance of tax policies that are responsive to public needs and highlighted the critical role of tax administration in ensuring the effective implementation of regulations and policies to achieve national development goals, aligning with the constitutional mandate to promote public welfare.

Amien Sunaryadi, Ak., M.P.A., Chairman of the Tax Supervisory Committee (Komwasjak), underlined the committee’s crucial role in overseeing tax and customs administration policies. In the event moderated by Dr. Andik Kusbiantoro, S.S.T., Ak., S.H., M.Int.Tax, Amien explained that Komwasjak, as an independent body, is responsible for providing strategic recommendations to ensure effective tax policies. He also emphasized the importance of collaborating across disciplines—combining theoretical knowledge with practical experience—to prevent future tax revenue losses.

The event, attended by approximately 200 participants, also featured Prof. Dr. Haula Rosdiana, M.Si, the first female Taxation Professor in Indonesia, who advocated for the establishment of an autonomous National Revenue Agency (BPN). She argued that this reform is a crucial step toward strengthening the country’s foundation for Indonesia Emas 2045—a vision for a prosperous and advanced Indonesia by its centennial.

“The current tax administration follows a traditional model with minimal autonomy, making institutional reform essential to strengthen state and nation-building,” Prof. Haula explained. She highlighted that the proposed BPN would enhance political legitimacy and public trust, while also ensuring that tax administration becomes a pivotal instrument for successfully implementing fiscal policies and laws.

Dr. Prianto Budi Saptono, M.B.A., a taxation academic and Chairman of the Indonesia Fiscal and Tax Administration Association (IFTAA), emphasized the balance between taxpayers’ rights and obligations in the context of an ideal fiscal contract. He also stressed the importance of integrating various theoretical frameworks in the formulation of tax policies.

“While policymakers often rely on rational choice theory, they must also account for the limitations of individual rationality,” Dr. Prianto explained. He elaborated that the policy-making process often involves compromise and is best described by force field theory, where diverse perspectives interact before a consensus is reached through the second-best theory approach.

Dr. Prianto also highlighted that tax regulations and the institutions enforcing them are grounded in fundamental concepts shaping tax policies. “Protecting taxpayers goes beyond financial considerations—it requires maintaining a balanced relationship between taxpayers and tax authorities within an ideal fiscal contract,” he concluded.

The discussion also featured Dr. Zainal Arifin Mochtar, S.H., LL.M., Head of the Constitutional Law Department at Universitas Gadjah Mada (UGM), who presented on tax institutional reform from a constitutional law perspective. Additionally, Darussalam, S.E., Ak., CA., M.Si., LL.M Int. Tax, Founder of the Danny Darussalam Tax Center (DDTC), provided insights on taxpayer rights and the proposed National Revenue Agency (BPN).