PERFORMANCE TARGET 2023
D. KEY PERFORMANCE INDICATORS 2023
Carrying a collaborative way of working to encourage taxpayer compliance which impacts the achievement of tax revenue targets, in 2023 DGT also formed Taxpayer Compliance Committee.
Improvements to the Key Performance Indicators (KPI) continues that the performance measurements depicted through the KPI are better than in previous years. These improvements include KPI reformulation, KPI redefinition, changes to KPI targets, as well as the establishment of new KPI and elimination of KPI.
The following is a list of DGT’s KPI for 2023 along with strategic initiatives to encourage the achievement of KPI targets as stated in the Performance Contract signed by the Director General of Taxes and the Minister of Finance on January 27, 2023.
The governance of the Taxpayer Compliance Committee also encourages the creation of synergy between units to avoid overlapping handling of taxpayers through harmonization of the List of Tax Revenue Priority Target (DSP4). The DSP4 determination process begins with the preparation of DSP4 recommendations by the Taxpayer Compliance Committee at Head Office based on several criteria determined in the areas of service, education, supervision, audit, valuation, law enforcement and collection. Furthermore, the Taxpayer Compliance Committee of the Regional Office and Tax Office levels carried out an adjustment process for the recommended DSP4 by considering the field situations. After going through the assessment and harmonization process, the Taxpayer Compliance Committee at Head Office then determined a collaborative DSP4 consisting of a List of Supervisory Priority (DPP), List of Audit Priority Target (DSPP), List of Valuation Priority Target (DSPPn), List of Disbursement Priority Target (DSPC), List of Priority Targets for Law Enforcement (DSPPH), List of Selected Extension Targets (DSPT), and List of Priority Targets for Extensification (DSPE). In this way, every treatment carried out by the work unit can be focused on taxpayers who have been listed at DSP4 and the achievements of such activities can be monitored.
The formation of this committee is a follow-up to the results of the Tax Administration Diagnostic Assessment Tool (TADAT) independent assessment in the area of effective risk management. DGT itself has developed compliance risk management (CRM) as a taxpayer compliance risk management tool. The Taxpayer Compliance Committee, which consists of employees at senior management level, complements the risk management process by acting as a policy maker for recommendations based on CRM output.
The Taxpayer Compliance Committee is at the Head Office, Regional Office and Tax Office levels. The Committee plans policies and strategies for achieving tax revenues that are prepared systematically, comprehensively and in stages. Policy plans and strategies for achieving tax revenue are prepared immediately after the tax revenue target in the State Budget is set. In preparing policies and strategies for securing national tax revenues, the Head Office Taxpayer Compliance Committee considers input from the Mandatory Compliance Committee at the Regional Office and Tax Office levels.
No. Program/Activity Target Performance Indicators Target
DGT Key Performance Indicators, 2023
Organizational Performance 169
Overview
2022 AnnualReport
No. Program/Activity Target Performance Indicators Target
3. High level of tax compliance in the
current year Level of tax compliance in the current year 100%
• Percentage of Annual Income Tax Return filing compliance by
Corporate and Individual Taxpayers 100%
• Percentage of tax revenue realization from Supervision on
Periodic Tax Payment (PPM) 100%
4. High level of tax compliance in the
previous year Percentage of tax revenue realization from Supervision on
Material Compliance (PKM) 100%
5. Formulation of competitive fiscal policies and international economic and financial partnerships
a. Level of effectiveness of regional Ministry of Finance (Joint
Secretariat, Regional Chief Economist, and MSME synergy) 100%
b. Index of priority policy/regulatory completion 100
c. Indeks of regulation effectiveness 7.50
(scale 10) 6. Effective tax education, services, and
public relations a. Service user satisfaction index 100%
b. Public relations ecosystem effectiveness index 100 c. Percentage of behavioral change in tax filing and remittance
for educational and counseling activities 70%
7. Optimal settlement of objections
and non-objections Percentage of timely settlement of objections and non-
objections 85.5%
• Percentage of timely objection settlement 78%
• Percentage of timely non-objection settlement 93%
8. Effective supervision on Periodic tax
payment Percentage of supervision on Periodic tax payment 90%
9. Effective supervision on Material
Compliance Level of effectiveness of tax law supervision and enforcement 100%
• Percentage of settlement of requests for data and
information clarification 100%
• Level of effectiveness on audit and valuation completion 80%
• Level of effectiveness of law enforcement, collection, and
collaboration 90%
10. Optimal settlement of appeals and
lawsuits Percentage of the verdicts defending the object of appeals/
lawsuits in Tax Court 45%
11. High-quality data and information Percentage of valid data 80%
12. Business process efficiency and
digitalization of tax services a. Percentage of success in implementing the joint program 85%
b. Level of tax business process transformation implementation
(Click, Call, Counter-3C) 100%
13. Strengthening governance and work culture of Kemenkeu Satu in a collaborative ecosystem
a. Level of quality of HR management and improvement of well-
being 100%
b. Percentage of program completion of the Strategic Initiative
for Bureaucratic Reform and Institutional Transformation 92%
No. Program/Activity Target Performance Indicators Target 14. Strengthening optimal financial
management Level of financial management quality of the Budget Section
(BA) 015 100
• BA 015 financial reporting quality index 90.4
• Performance index of budget implementation quality 100 (95.5%)
• Efficiency level of bureaucratic spending 85
(Scale 100) 15. Strengthening the collaborative
information and communication technology (ICT) ecosystem
ICT system management quality index 100%
• ICT system downtime rate 0.10%
• Percentage of completion of strategic ICT projects 92%
• Percentage of completion of analytics data 92%
16. Strengthening the effective internal
control monitoring Organizational Integrity Index 95.95
• Integrity Index 87.84
• Maturity index of the Government Internal Control System
(SPIP) implementation 100
• The level of achievement of work units fulfilling the criteria
of the Integrity Zone towards a Corruption-Free Area 100%
Source: Performance Contract 2023 of the Director General of Taxes (No. PK-3/MK/2023) 170 Organizational Performance
Overview 20
Annual 22
Report
Source: Performance Contract 2023 of the Director General of Taxes (No. PK-3/MK/2023)
KPI Strategic Initiatives Output/Outcome Period
Percentage of completion of strategic ICT projects
Core Tax Administration System
Project 1. Testing completion
2. Data Migration completion 3. Initial Deployment completion
Jan—Dec
Level of effectiveness of tax law supervision and enforcement
Tax Forensics Laboratory at the
RTO A total of 34 Digital Forensic Laboratories in all DGT vertical units provide services of digital forensics as follows:
1. digital forensics on computers;
2. digital forensics on cell phones;
3. digital forensics on internet accounts; and 4. digital forensics on other devices.
Jan—Dec
Level of effectiveness of tax law supervision and enforcement
Dissemination to accelerate understanding of law enforcement by law enforcement officers (APH)
Law Enforcement Apparatus Training (APH) in 2023 Jan—Dec DGT Strategic Initiatives, 2023
Organizational Performance 171
Overview
2022 AnnualReport
2022 172
2022