LG CNS has been selected as the operator of the Indonesian Core Tax Administration System (CTAS).
It is the largest single contract to build a system among all e-government export projects worth 100 billion won ($92.5 million). This project is expected to be a successful case of digital transformation (DX) exports as it will apply cutting-edge IT technologies such as cloud and big data.
This project is to systematize the overall tax administration work in Indonesia. Indonesia's 42 million taxpayers and 32,000 tax officials will use the system. It is planning to start building its system from next year and complete it by the end of 2024.
Indonesia aims to maximize administrative efficiency through the project, which will overhaul the overall work of the National Tax Service. To this end, existing national taxes and related systems will be integrated and linked with the national financial information system.
LG CNS already has experience and capacity in various national tax systems, establishing the Korea National Tax Service's integrated national tax system, cash receipt and big data system.
In addition, it successfully established Indonesia's national financial information system in 2015 and is currently operating it. Indonesian Finance Ministry's first project to build a large-scale IT system at a cost of tens of billions of won led to the order for the national tax system project.
LG CNS also established the Indonesian National Police Agency system in 2007. Since then, as Korean companies have won orders to establish the national financial information system and the national tax system, some say that the "DX Korean Wave" is blowing in Indonesia.
"This contract will be a model example of e-government exports that the private companies and the government have worked together to bring about results," said Hyun Shin-kyun, vice president of LG CNS' DTI division. "As it is meaningful, we will work well with small and medium-sized companies going abroad to make it an opportunity to promote domestic IT service technology capabilities to the world."
