An Effectiveness Analysis of Tax Administration Digitalization Reducing the Shadow Economy in Indonesia
DOI:
https://doi.org/10.18502/kss.v10i13.18943Keywords:
digitalization, e-government, shadow economy, tax administrationAbstract
“Micro, small, and medium enterprises (“MSMEs”)” play an important role in Indonesia’s economy but are often difficult to tax due to their informal operations. To address this, the government is promoting digitalization to curb the shadow economy. This study aims to evaluate the effectiveness of digitizing tax administration in reducing the shadow economy, analyze the challenges and solutions associated with this process, and examine its impact on state revenue and taxpayer compliance within the informal sector. Using a qualitative research approach, data were collected through in-depth interviews and direct observations involving MSME actors and officials from the Directorate General of Taxes “(“DGT”)”. The findings indicate that the implementation of tax digitalization, particularly through the core tax system, can be assessed using the balanced e-government model, which consists of four dimensions: benefits, efficiency, transparency, and participation. According to the Information Systems Success Model (ISSM), the digitalization of tax administration has been fairly effective. Nevertheless, challenges remain for the DGT in executing these digital initiatives. Despite these obstacles, tax digitalization is expected to simplify tax compliance for MSMEs, thereby increasing taxpayer adherence, boosting state revenue, and reducing the shadow economy.
References
[1] Smith P. The underground economy: Global evidence of its size and impact. Choice Reviews Online. 1997;35(3). DOI: https://doi.org/10.5860/CHOICE.35-1648
[2] Elbahnasawy NG. Can e-government limit the scope of the informal economy? World Dev. 2021;139:105341. DOI: https://doi.org/10.1016/j.worlddev.2020.105341
[3] Rezky NP. Kajian kegiatan shadow economy di Indonesia: Sebuah studi literatur [Study of shadow economy activities in Indonesia: A literature study]. Jurnal Akuntansi Bisnis dan Ekonomi. 2020;6(2):1671-1680. https://doi.org/10.33197/jabe.vol6.iss2.2020.617. Indonesian DOI: https://doi.org/10.33197/jabe.vol6.iss2.2020.617
[4] Din BH, Habibullah MS, Hamid BA. Re-estimation and modelling shadow economy in Malaysia: does financial development mitigate shadow economy? International Journal of Business & Society. 2019;20(3):1062–75.
[5] Twizeyimana JD, Andersson A. The public value of e-government – A literature review. Gov Inf Q. 2019;36(2):167–78. DOI: https://doi.org/10.1016/j.giq.2019.01.001
[6] Musqari N, Paramita G, Kisworo Y, Sundawa RD. Peningkatan kapasitas UMKM melalui pelaporan keuangan [Increasing the capacity of MSMEs through financial reporting]. Jurnal Pengabdian Masyarakat Ekonomi, Manajemen dan Akuntansi ( JPMEMA). 2022;1(1):41-47. Indonesian
[7] Yuan Q, Gasco-Hernandez M, Gil-Garcia JR. Handbook of theories of public administration and management. Bryer TA, editor. UK: Edward Elgar Publishing; 2021. Chapter 9, Digital government: Analytical models, underlying theories, and emergent theoretical perspective; p. 104-122. DOI: https://doi.org/10.4337/9781789908251.00019
[8] Yap M, Mulyani SD. Pengaruh pelayanan, pengawasan dan pemeriksaan pajak terhadap kepatuhan wajib pajak badan yang dimoderasi digitalisasi administrasi perpajakan [The influence of tax services, supervision and audits on corporate taxpayer compliance moderated by digitalization of tax administration,Indonesian]. Jurnal Magister Akuntansi Trisakti. 2022;9(1):37–54. DOI: https://doi.org/10.25105/jmat.v9i1.10573
[9] Misra F. Tax compliance: Theories, research development and tax enforcement models. Accounting Research Journal of Sutaatmadja. 2019;3(2):189–204. DOI: https://doi.org/10.35310/accruals.v3i2.72
[10] Rasmini M, Ismail T. Administrasi perpajakan. pengertian pajak, adm. pajak, fungsi, dan syarat pemungutan pajak [Tax administration. Definition of tax, tax administration, function, and requirements for tax collection.]. Jakarta: Universitas Terbuka; 2014. Indonesian
[11] Saifudin S, Rahmawati MA. Digitalisasi administrasi perpajakan: implementasi di KPP Pratama Semarang Selatan [Digitalization of tax administration: implementation at South Semarang Pratama Tax Office]. Jurnal HUMMANSI (Humaniora, Manajemen, Akuntansi). 2022;5(2):70-80. Indonesian
[12] OECD. Tax Administration 2019: Comparative information on OECD and other advanced and emerging economies. Paris: OECD Publishing; 2019.
[13] Feige EL. Reflections on the meaning and measurement of unobserved economies: what do we really know about the ‘Shadow economy’. Journal of Tax Administration. 2016;2016(2):1–50. DOI: https://doi.org/10.2139/ssrn.2705879
[14] Dahlan M. Shadow economy, AEOI, dan kepatuhan pajak [Shadow economy, AEOI, and tax compliance,Indonesian]. Scientax. 2020;2(1):39–56. DOI: https://doi.org/10.52869/st.v2i1.51
[15] Samuda SJ. Underground economy in Indonesia. Bulletin of Monetary Economics and Banking. 2016;19(1):39–56. DOI: https://doi.org/10.21098/bemp.v19i1.599
[16] Arief A, Abbas MY. Kajian literatur (systematic literature review): Kendala penerapan sistem pemerintahan berbasis elektronik (SPBE) [Literature review (systematic literature review): Obstacles to implementing electronic-based government systems (SPBE)]. PROtek [Indonesian]. Jurnal Ilmiah Teknik Elektro. 2021;8(1):1–6. DOI: https://doi.org/10.33387/protk.v8i1.1978
[17] Gil-García JR, Pardo TA. E-government success factors: mapping practical tools to theoretical foundations. Gov Inf Q. 2005;22(2):187–216. DOI: https://doi.org/10.1016/j.giq.2005.02.001
[18] Owens J, Pemberton JL. Cooperative compliance: A multi-stakeholder and sustainable approach to taxation. Netherlands: Kluwer Law International B.V.; 2021. 156 pp.
[19] Stiftung B, Hamilton BA. Balanced e-government: Elektronisches regieren zwischen administrativer effizienz und bürgernaher demokratie [Balanced e-government: Electronic governance between administrative efficiency and citizen-oriented democracy]. Gütersloh: Bertelsmann Foundation Publication House; 2002. German
[20] Haning MT. Reformasi birokrasi di Indonesia: Tinjauan dari perspektif administrasi publik [Bureaucratic reform in Indonesia: A review from a public administration perspective]. JAKPP ( Jurnal Analisis Kebijakan & Pelayanan Publik). 2019;4(1):25-37. https://doi.org/10.31947/jakpp.v4i1.5902. Indonesian DOI: https://doi.org/10.31947/jakpp.v4i1.5902
[21] Choirunnisa L, Oktaviana THC, Ridlo AA, Rohmah EI. Peran sistem pemerintah berbasis elektronik (SPBE) dalam meningkatkan aksesibilitas pelayanan publik di Indonesia [The role of electronic-based government systems (SPBE) in increasing the accessibility of public services in Indonesia]. Sosio Yustisia: Jurnal Hukum dan Perubahan Sosial. 2023;3(1):71-95. https://doi.org/10.15642/sosyus.v3i1.401. Indonesian DOI: https://doi.org/10.15642/sosyus.v3i1.401
[22] Tapscott D. The digital economy: Promise and peril in the age of networked intelligence. New York: McGraw-Hill; 1996.
[23] Amit R, Zott C. Value creation in e-business. Strateg Manage J. 2001;22(6-7):493– 520. DOI: https://doi.org/10.1002/smj.187
[24] Malhotra Y. Enabling next generation e-business architectures: Balancing integration and flexibility for managing business transformation. Intel e-Strategy White Paper. 2001.
[25] Rachmadi T. Pengantar teknologi informasi [Introduction to information technology]. Bandar Lampung: TIGA Ebook; 2020. Indonesian
[26] Prasetyowati H, Panjawa JL. Teknologi dan distribusi pajak mendukung kualitas pembangunan manusia [Technology and tax distribution support the quality of human development]. Transekonomika: Akuntansi, Bisnis dan Keuangan. 2022;2(2):23-36. https://doi.org/10.55047/transekonomika.v2i2.113. Indonesian DOI: https://doi.org/10.55047/transekonomika.v2i2.113
[27] Ministry of Finance. Wamenkeu: Kumpulkan pajak untuk menjaga dan menumbuhkan ekonomi indonesia [Deputy Minister of Finance: Collect taxes to maintain and grow the Indonesian economy,Internet]. Jakarta: Ministry of Finance; 2023 [cited 2023 Nov 3]. Available from: https://www.kemenkeu.go.id/informasipublik/ publikasi/berita-utama/Kumpulkan-Pajak. Indonesian
[28] Mufidah IF, Hasanah A. Kupas tuntas peran digitalisasi perpajakan [A thorough analysis of the role of tax digitalization,Indonesian]. JIMEK: Jurnal Ilmiah Mahasiswa Ekonomi. 2023;6(1):89–97. DOI: https://doi.org/10.30737/jimek.v6i01.4717
[29] OECD. OECD Economic surveys: Indonesia 2021 [Internet]. Paris: OECD; 2021 [cited 2023 Nov 3]. Available from: https://www.oecdilibrary. org/content/publication/fd7e6249-en
[30] Widianto E. Pemanfaatan media pembelajaran berbasis teknologi informasi [Utilization of information technology-based learning media,Indonesian]. J Educ Teach. 2021;2(2):213–24. DOI: https://doi.org/10.24014/jete.v2i2.11707
[31] OECD. Tax administration 2017 [Internet]. Paris: OECD; 2021 [cited 2023 Nov 3]. Available from: https://www.oecd-ilibrary.org/content/publication/tax_admin-2017-en
[32] Kundalini P. Pengaruh kesadaran wajib pajak dan pelayanan pegawai pajak terhadap kepatuhan wajib pajak pada Kantor Pelayanan Pajak Pratama Kabupaten Temanggung tahun 2015 [The influence of taxpayer awareness and tax officer services on taxpayer compliance at the Temanggung Regency Primary Tax Service Office in 2015,Bachelor’s thesis on the Internet]. Yogyakarta: Universitas Negeri Yogyakarta; 2016 [cited 2023 Nov 3]. Available from: https://eprints.uny.ac.id/33437. Indonesian
[33] Nugraheni AP, Sunaningsih SN, Khabibah NA. Peran konsultan pajak terhadap kepatuhan wajib pajak [The role of tax consultants in taxpayer compliance, Indonesian]. Jurnal Akuntansi Terapan Indonesia. 2021;4(1):49–58. DOI: https://doi.org/10.18196/jati.v4i1.9701
[34] Wibowo A. Internet of things (IoT) dalam ekonomi dan bisnis digital [Internet of things (IoT) in the digital economy and business]. Semarang: Yayasan Prima Agus Teknik; 2023. Indonesian
[35] Sulistiyantoro D, Nusa GH. Analisis pengaruh digitalisasi pajak terhadap pajak penghasilan di masa pandemi [Analysis of the impact of tax digitalization on income tax during the pandemic]. Bilancia [Indonesian]. Jurnal Ilmiah Akuntansi. 2023;7(2):540–56. DOI: https://doi.org/10.35145/bilancia.v7i2.2305
[36] Muhnia N, Alam S, Shaleh M. Kesadaran wajib pajak, pengetahuan perpajakan dan kepatuhan wajib pajak [Taxpayer awareness, tax knowledge and taxpayer compliance]. Paradoks [Indonesian]. Jurnal Ilmu Ekonomi. 2023;6(2):117–27. DOI: https://doi.org/10.57178/paradoks.v6i2.635
[37] Kristianto AH, Dedy D, Fentura B. Underground economy dalam sebuah perspektif [Underground economy in perspective]. Business [Indonesian]. Economics and Entrepreneurship. 2020;2(2):1–8. DOI: https://doi.org/10.46229/b.e.e..v2i2.171
[38] Firdausy CM. Optimalisasi dan penguatan perpajakan Indonesia [Optimization and strengthening of Indonesian taxation]. Jakarta: Yayasan Pustaka Obor Indonesia; 2021. Indonesian
[39] Lippert O, Walker M. The underground economy: Global evidence of its size and impact. Vancouver, B. C.: The Fraser Institute; 1997.
[40] Suryadi TL, Subardjo A. Pengaruh kepatuhan wajib pajak, penagihan pajak dan pemeriksaan pajak terhadap penerimaan pajak [The influence of taxpayer compliance, tax collection and tax audits on tax revenues]. Jurnal Ilmu dan Riset Akuntansi ( JIRA). 2019;8(4):1-22. Indonesian
[41] Kementerian Koperasi dan UKM. Perkembangan data usaha mikro, kecil, menengah (UMKM) dan usaha besar (UB) tahun 2018 – 2019 [Cooperatives and SMEs. Development of micro, small, medium enterprises (MSMEs) and large enterprises (UB) data in 2018 – 2019]. Jakarta: Kementerian Koperasi dan UKM; 2021. Indonesian
[42] Palupi ME, Arifin J. Kepatuhan wajib pajak UMKM di Indonesia: Faktor internal dan eksternal [Tax compliance of MSMEs in Indonesia: Internal and external factors]. Proceeding of National Conference on Accounting & Finance. 2023;5:336-346. https://doi.org/. Indonesian
[43] Muliawati NG. Shadow economy [Internet]Jakarta: Direktorat Jenderal Pajak; 2020.[ [cited 2023 Nov 3]], Available from http://pajak.go.id/id/artikel/shadow-econo
[44] Hakki TW, Simanungkalit J, Siat M. Pengaruh tax self-assessment system, money ethics, dan religiusitas terhadap tax evasion [The influence of tax self-assessment system, money ethics, and religiosity on tax evasion]. Jurnal Analisa Akuntansi dan Perpajakan. 2023;7(2):160-171. https://doi.org/10.25139/jaap.v7i2.7007. Indonesian DOI: https://doi.org/10.25139/jaap.v7i2.7007
[45] Aini NQ, Nurhayati N. Pengaruh kebijakan insentif pajak penghasilan bagi UMKM dan digitalisasi pajak terhadap kepatuhan wajib pajak [The impact of income tax incentive policies for MSMEs and tax digitalization on taxpayer compliance,Indonesian]. Bandung Conference Series: Accountancy. 2022;2:341–6.
[46] Kowel VAA, Kalangi L, Tangkuman SJ. Pengaruh pengetahuan wajib pajak, kesadaran wajib pajak dan modernisasi administrasi perpajakan terhadap kepatuhan wajib pajak kendaraan bermotor di Kabupaten Minahasa Selatan [The influence of taxpayer knowledge, taxpayer awareness and modernization of tax administration on motor vehicle taxpayer compliance in South Minahasa Regency]. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi. 2019;7(3):4251-4260. https://doi.org/https://doi.org/10.35794/emba.v7i3.25060. Indonesian
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Devi Nur Cahaya Ningsih, Dewi Noor Fatikhah Rokhimakhumullah, Yesika Suryani, Irfan Isa Mahendra
This work is licensed under a Creative Commons Attribution 4.0 International License.
