DIGITAL REPORTING ADMINISTRATION READINESS OF THE INDONESIAN DIRECTORATE GENERAL OF TAXES IN FACILITATING THE GLOBAL MINIMUM TAX POLICY

Abstract

Indonesia's participation in the OECD/G20 Two-Pillar Solution obliges the Directorate General of Taxes (DGT) to build adequate digital reporting administration readiness for the Global Minimum Tax (GMT), particularly through the Core Tax Administration System (Coretax) and the eXtensible Business Reporting Language (XBRL) standard. This study analyzes DGT's digital reporting readiness and formulates an optimization strategy, using a qualitative case study approach under a post-positivist paradigm, through in-depth interviews with eight key informants representing regulators, multinational enterprise (MNE) taxpayers, tax consultants, and academics. Data were analyzed using the Structure-System-People (SSP) framework and the Dynamic Capabilities Framework (DCF: sensing-seizing-transforming). Results show readiness is graduated and asymmetric: the regulatory Structure is solid through PMK 136/2024, but the System dimension reveals a structure-system misalignment—the GMT functional module was not yet available in Coretax during the research period, confirmed by three independent sources—while an XML-XBRL semantic interoperability gap risks data incompatibility in future automatic information exchange. The People dimension is the most critical vulnerability, containing two distinct layers: willingness to change and capability to understand, each requiring different interventions. Under DCF, DGT shows top-heavy sensing, seizing constrained by low absorptive capacity from vendor dependency, and the weakest transforming capability due to organizational resistance and a Big Bang rollout strategy. The study recommends four causally linked interventions: establishing lateral coordination mechanisms, aligning data governance with OECD GIR XML Schema, segmenting human resource capacity programs by stakeholder typology, and adopting phased piloting for the GMT module.