BUREAUCRACY REFORM: IMPROVED …siteresources.worldbank.org/INTINDONESIA/Resources/226271...BUREAUCRACY REFORM: IMPROVED PERFORMANCE THROUGH HR REFORMS Directorate General of Taxes

BUREAUCRACY REFORM:

IMPROVED PERFORMANCE THROUGH HR REFORMS

Directorate General of Taxes

Ministry of Finance

Republic of Indonesia

158.57 176.20

204.15 238.98

298.34

358.05

426.23

571.11 544.60

627.89

763.67

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

TAX REVENUE

STRATEGIC OBJECTIVE: to increase voluntary compliance

T A

R G

E T

Source: DG Treasury Tax Revenue Report

ORGANIZATION STRUCTURE - MoF

Sumber: www.depkeu.go.id

ORGANIZATION STRUCTURE - DGT

REGIONAL OFFICE

(GENERAL, 29)

REGIONAL OFFICE

(SPECIAL, 1)

KPP WP

BESAR

(2)

KPP BUMN

(1)

KPP HWI

(1)

KPP

MADYA

(19)

KPP

PRATAMA

(299)

KP2KP

(207)

16.270.350 WP

REGIONAL OFFICE

(LARGE, 1)

KPP

PMA

(6)

KPP

BADORA

(2)

KPP

PMB

(1)

DGT HEAD OFFICE

DPC

(1)

ORGANIZATION STRUCTURE - FETC

DJP

Sumber: www.bppk.depkeu.go.id

EMPLOYEE COMPOSITION

40%

27%

16%

6%

5% 2%

2%

2%

DKI-Jabotabek

Jawa

Sumatera

Sulawesi

Kalimantan

Nusa Tenggara

Bali

Papua Maluku

NO REGION AMOUNT %

1 DKI-Jabotabek 12.820 39,53

2 Jawa 8.778 27,07

3 Sumatera 5.020 15,48

4 Sulawesi 1.980 6,11

5 Kalimantan 1.755 5,41

6 Nusa Tenggara 750 2,31

7 Bali 695 2,14

8 Papua Maluku 634 1,95

TOTAL 32.432 100,00

15.61%

14.30%

21.98%

35.27%

12.84%

SD/SMP/SMA

D1/D2

D3

D4/S1

S2/S3

41.86%

33.17%

17.06%

7.92%

21-30 31-40 41-50 OVER 50

RANGE OF AGE

EDUCATION

DGT

BETTER

DGT REFORM: THE JOURNEY

1984 Tax Law Reform: Introducing Self

Assessment System

1990 Organization Restructure: Tax type organization structure &

separation between Tax Office and

Audit & Investigation Office. Land &

Property Tax Office remain the same.

1994 Automation System: Launching SISMIOP (Sistem

Manajemen Informasi Obyek

Pajak) and SIP (Sistem

Informasi Perpajakan), replacing

manual system.

Pre-1984 Tax Law

Reform: Official Assessment System

2000 Tax Law Reform: Improving Tax Policies

2004 Web-Based System: Launching SIDJP (Sistem

Informasi Direktorat Jenderal

Pajak).

2006 STO Establish and

Regional Office Restructure: Taxpayer segmentation, merging 3

offices: Tax Office, Land & Property

Tax Office, and Audit & Investigation

Office. Objection no longer in TOs, but

moved to ROs.

2007 DGT-HO Restructure: Function type organization with 3

transformation functions:

1.Business Process,

2.ICT,

3.Organization & HRM, Internal

Investigation Unit.

Data Processing Center (DPC) established.

2008 New Model of DGT

Strategic Plan: Introducing BSC as an official

strategic performance

measurement tool.

2011 HR Blueprint: Strategic framework for HR

management development.

2002 LTO Establish: Introducing function type

organization (pilot project)

2004 MTO Establish: Taxpayer segmentation

started (pilot project)

2012-2015 PINTAR

Project: Core Tax System & HRMIS

development. More DPCs.

1998 Monetary

Crisis

DGT

BETTER

HR REFORM: THE JOURNEY

1984 Tax Law Reform:

No significant reform in

HR.

1990 Organization

Restructure: Following the Audit &

Investigation Office, DGT built

auditor task force.

1992 Tax Auditor as

Functional: Introducing Auditor (new role)

and PAK Automation (auditor

performance measurement)

2005-2007

Modernization

Trainings: To prepare employees

to accept changes.

2007 Growing Needs: Number of Auditors, ObRevs

and ARs increased, new

technical training conducted with

ALP methodology created high

enthusiasm in attending

trainings.

2008 Internal Compliance &

Investigation Unit: Introducing Code of Conduct. IU

started to combat misconduct

behavior among employees. New

technical investigation techniques

were needed.

2008 New Model of DGT

Strategic Plan: Introducing BSC as an official

strategic performance

measurement tool. New

performance measurement

(PMK-190).

2011 HR Blueprint &

Whistle blower: Strategic framework for HR

management development.

Whistle blower introduced to

prevent misconduct. Rotation

policy and employee

recognition program

implemented.

2002 LTO Establish: New Remuneration

Scheme and introducing

Account Representative

(a model)

2004-2007 New

Remuneration

Scheme Adopted: To combat bribery

2012-2015 PINTAR

Project: Core Tax System &

HRMIS development.

2008 HR Infrastructures : New SOPs and Job Description to

improve service quality. Introducing Job

Grading and Assessment Center. SIKKA

replaced SIPEG, merging the automation

of personnel administration, finance and

assets system. Risk Mgmt adopted.

2006 HR Mapping: Introducing mapping

as an employee

selection tool.

2005-2007

Fingerprint Machine: To combat high

absenteeism.

1996 HR

Infrastructures: New SOPs and Job

Description to improve

service quality.

2000 SIPEG: Introducing web-

based centralized

personnel

administration

system. 1996 Payroll

Automation

System: To improve

service

quality.

2010 DGT Leadership

Program & Corporate

Values (PASTI): Leadership trainings

followed by Internal Corp.

Values. Coaching training

(pilot project).

1998 Monetary

Crisis

- BoD

- Employee

ST

AK

EH

OL

DE

R

INT

ER

NA

L P

RO

CE

SS

IN

TE

RN

AL

RE

SO

UR

CE

S

Q. Manage reliable HR

planning

R. Improve the quality of HR

administration

V. Build HR mgmt

infrastructure

W. Improve HR staff

capacity

X. Improve the effectiveness

of HR budget Y. Develop HR organization

ORGANIZATION CULTURE

J. Improve Leadership

Excellence

RECRUITMENT TRAINING & DEVELOPMENT REWARD & RECOGNITION

U. Improve the effectiveness

of internal communication

F. Recruit high

quality employee

G. Improve the

effectiveness of

employee

orientation

program

L. Improve the quality of

competency assessment

K. Improve the effectiveness

of training & development

O. Improve

performance

based

remuneration

mgmt

P. Improve

employee benefit

program

CAREER MGMT

M. Improve the

effectiveness of

performance and

competency based

career mgmt

N. Improve the

effectiveness of

talent management

PERFORMANCE MGMT

H. Improve trusted

and transparent

performance mgmt

I. Improve the

effectiveness of

performance

evaluation

S. Improve the effectiveness

of knowledge management

system

T. Improve the effectiveness

of employee supervision and

mentoring

B. HIGH

COMPETENCY E. STRONG

CORPORATE CULTURE D. HIGH INTEGRITY

A. EXCELLENT PERFORMANCE EMPLOYEE

C. HIGH

SATISFACTION

HR STRATEGY COVERAGE

Defining

Organizational

Values

HR Organizational

Change

HR System &

Process Business

Improvement

HR Blueprint

HR Competency

Improvement

HRSB gives a strategic framework to maintain HR initiatives work in

place and to secure continuous improvement

HROC (restructuring HR organization) improves the HR

administration span of control by distributing some of its authorities in

selecting talented people, securing the performance evaluation

fairness, keeping people development on track, etc

HRCI makes sure the HR functions run by competent people to

create competent employees

Improvement covers IT system to support the automation of HR

process business, ie: performance evaluation, workforce planning

recruitment, personnel administration, payroll system, training (e-

learning), etc

Org. Values encourages all

employees to define

themselves as part of

organizational change and

to prepare them to face it HR Change

Management HRCM makes sure all employee can access all information,

understand and involve actively in changing environment

HR STRATEGIC INITIATIVES

REGULATIONS MenPAN and BKN reform initiatives

HR Bureau (MoF) reform initiatives

DGT reform initiatives

BUSINESS PROCESS

Recruitment process

Performance management

360 degree performance evaluation

ORGANIZATION HR transformation unit at DGT-HO

HR regional offices restructure

New functions and SOPs

HUMAN RESOURCE

Competency standards

Job evaluations

Succession plan

CULTURE Code of conduct and whistle blower system

Change management

Internal corporate values

INFORMATION SYSTEM

SIKKA (personnel administration system)

PINTAR-B (HRIS development)

HR digital document system

Training and development

Career development management

Assessment center

Key performance indicators

New job descriptions

Rotation policy

Employee benefit

Coaching and counseling

Termination and pension plan

Leadership trainings

Employee Recognition Program

Climate & Engagement survey

HR Knowledge Management System

THANK YOU