LG CNS has received an award from the Indonesian Tax Authority in recognition of its contributions to the successful establishment and ongoing technical and operational support of the next-generation tax administration system, CoreTax.
The award ceremony took place on September 11 in Jakarta, attended by Kim Hong-geun, Vice President of LG CNS's Digital Business Division, Bimo Wiyanto, Head of the Tax Authority, and Iwan Djuwandi, Special Advisor to the Minister of Finance.
CoreTax is a next-generation tax administration system initiated by the Indonesian Tax Authority under the Ministry of Finance. It integrates various tax-related tasks, including taxpayer registration, reporting, payment, refunds, audits, and collections, into a single platform, transforming tax administration into a digital framework.
The Indonesian government aims to enhance tax administration efficiency, improve taxpayer convenience, and establish a data-driven tax system based on CoreTax, thereby strengthening the country's financial foundation.
In December 2024, LG CNS completed the system's construction in partnership with Austrian IT firm Qualisoft. Since then, it has supported the Tax Authority in system operation and stabilization until March of this year. After the Tax Authority began operating the system in April, LG CNS secured maintenance contracts for core infrastructure, including databases, continuing its technical support.
CoreTax has shown visible results alongside operational stabilization. According to the Indonesian Ministry of Finance and the Tax Authority, tax revenue in the first half of this year reached 1,035.7 trillion rupiah (approximately $79.1 billion), marking a 24.6% increase compared to the same period last year. Notably, there has been growth across major tax categories, including corporate tax, personal income tax, and value-added tax. The Tax Authority attributed the revenue increase to the recovery of economic activities and the strengthening of tax administration through CoreTax, which has improved taxpayer compliance.
LG CNS is currently discussing advanced projects with the Tax Authority to integrate AI technology into CoreTax. Plans include enhancing tax administration efficiency and taxpayer services through automation and data analysis capabilities using AI.
For over 20 years, LG CNS has been involved in e-government projects for key public institutions in Indonesia, including the police and the Ministry of Finance, in addition to CoreTax. Since last year, it has expanded its local operations by undertaking a 100 billion won project to build an AI data center infrastructure in Jakarta.
Bimo Wiyanto, Head of the Indonesian Tax Authority, expressed hope for the continued partnership between the Tax Authority and LG CNS, based on mutual respect and professionalism.
Kim Hong-geun, Vice President of LG CNS's Digital Business Division, stated, "This award recognizes not only the establishment of CoreTax but also our close collaboration with the Tax Authority for its stable operation. We will continue to leverage our accumulated digital transformation capabilities and AI technology to contribute to the digital government innovation in Indonesia."
Meanwhile, LG CNS is expanding its business in Indonesia as a key global hub. In addition to public and infrastructure projects like the Jakarta light rail and CoreTax, it has participated in the design of the smart city in the new capital, Nusantara, and established a joint venture with local conglomerate Sinarmas Group in 2024. Recently, it has broadened its business scope to include data centers and cloud services through a project to build an AI data center in Jakarta worth approximately 100 billion won.
* This article has been translated by AI.
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