



The Directorate General of Taxes (DJP) under Indonesia’s Ministry of Finance is preparing to implement Artificial Intelligence (AI) to improve tax supervision and administration. This initiative is part of Indonesia’s ongoing digital transformation in taxation. However, as technology continues to advance, an important question arises: how will the government ensure the security and confidentiality of taxpayer data?
Director General of Taxes Bimo Wijayanto emphasized that protecting taxpayer data and maintaining its confidentiality remain government priorities. Therefore, the government will not indiscriminately use open-source AI systems. Instead, DJP plans to develop its own AI technology to ensure that its implementation can be tailored to the needs of tax administration and data protection.
According to Bimo, AI development is also one of the government’s key challenges in strengthening technological capabilities, particularly in tax services, data analysis, and administration.
AI Has the Potential to Make Tax Supervision More Efficient
The use of AI is expected to help DJP process large volumes of data more quickly. This technology also has the potential to improve the accuracy of tax compliance detection and automatically respond to routine taxpayer inquiries.
With these capabilities, AI could become a supporting tool for more efficient tax supervision. Data analysis processes that previously required more time could potentially be completed faster, helping DJP identify potential tax non-compliance.
Beyond supervision, AI could also improve the quality of tax services. For example, automating responses to routine inquiries could make it easier for taxpayers to access the information they need.
Nevertheless, AI implementation must be supported by proper technology and data management, particularly because tax systems involve confidential taxpayer information.
Government Plans to Develop AI Independently
To support the implementation of this technology, the government plans to develop its own AI systems rather than relying solely on open-source solutions. This approach is expected to allow AI technology to be tailored to the specific needs of tax administration.
In addition to independent development, the government also plans to collaborate with tax authorities that have already developed and implemented AI, including China.
This cooperation is part of the government’s efforts to learn from other countries’ experiences in applying AI to taxation. By combining independent technology development with international knowledge-sharing, DJP aims to strengthen its digital capabilities to address increasingly complex tax supervision requirements.
What About Taxpayer Data Security?
Data security and confidentiality are among the most important considerations in DJP’s AI implementation plans. The government has emphasized that data protection remains a priority, while developing AI independently is intended to ensure that the technology can be adapted to the specific needs of tax administration.
However, developing AI independently does not, by itself, explain every aspect of system security. Details regarding technical data protection mechanisms, access controls, and oversight of AI usage have not yet been explained comprehensively in the available statements.
Therefore, the development of AI within DJP needs to be monitored not only in terms of improved tax supervision efficiency but also in terms of transparency and the protection of taxpayer information.
Digital Transformation in Taxation Enters a New Chapter
The planned use of AI demonstrates the increasingly important role of technology in modernizing tax administration. Its ability to process data quickly, support analysis, and automate services could create opportunities for a more efficient tax supervision system.
On the other hand, the success of this technology will not depend solely on its sophistication. Taxpayer trust is also a crucial factor, particularly when technology is used to process confidential information.
Moving forward, DJP’s challenge will be to ensure that AI implementation goes hand in hand with improved service quality, more effective tax supervision, and stronger taxpayer data protection. For taxpayers and business owners, staying informed about developments in digital tax transformation is an important step toward understanding changes in Indonesia’s tax administration and supervision systems.


