The Human Resource Management at The Directorate General of Taxes (Ministry of Finance) to Increase Indonesia's Tax Ratio

Abstract

The tax-to-GDP ratio is the ratio of the tax revenue of a country compared to the country's gross domestic product (GDP). This ratio is
used as a measure of how well the government controls a country's economic resources. Tax-to-GDP ratio is calculated by dividing the tax
revenue of a specific time period by the GDP. (https://www.investopedia.com/terms/t/tax-to-gdp-ratio.asp). Indonesia's tax-to-GDP
ratio was 10.1% in 2020, below the Asia and Pacific (28) average of 19.1% by 9.0 percentage points. It was also below the OECD
average (33.5%) by 23.4 percentage points. The tax-to-GDP ratio in Indonesia decreased by 1.5 percentage points from 11.6% in 2019
to 10.1% in 2020. From 2007 to 2020, the tax-to-GDP ratio in Indonesia decreased by 2.1 percentage points from 12.2% to 10.1%.
The highest tax-to-GDP ratio in this period was 13.0% in 2008, and the lowest 10.1% in 2020. The author tries to find the cause of
the low tax ratio in Indonesia from the point of view of human resources, in this case, the tax officials. The author tries to examine the
relationship between the number of tax officials and the number of taxpayers who must be supervised. In addition, the author will also
examine the management of human resources at the Directorate General of Taxes in an effort to increase Indonesia's tax ratio. The
Directorate General of Taxes (DGT) intends to raise the present tax ratio to 15%, aligns with the global average. Indonesia’s current tax
ratio of 10.4% is still below the global average of 13.5%, as per the DGT. Indonesia is also trailing behind other nations in the ASEAN
region; for instance, Thailand’s tax ratio is at 14.5%, the Philippines at 14%, and Singapore at 12.9%.
(https://indonesiabusinesspost.com/, DGT efforts to increase Indonesia’s tax ratio up to 15%)
Keywords: tax ratio, human resources management, tax official