Jakarta, Indonesia Sentinel — The Indonesian government is set to unveil an advanced government technology (GovTech) system aimed at streamlining public administration and enhancing transparency.
According to Luhut Binsar Pandjaitan, Chairman of the National Economic Council (DEN), the system will be launched on August 17, 2025, coinciding with Indonesia’s Independence Day celebrations.
“This system, powered by AI and big data, will transform Indonesia into a more transparent country,” Luhut said during a DEN press conference on Monday, January 13, 2025, as reported by CNBC Indonesia.
Integration Across Government Services
The cutting-edge system will integrate various government services, including tax collection (Coretax), business licensing (OSS), national procurement (e-Catalog), and public services like digital ID cards, passports, and driver’s licenses.
Tax compliance will be a key focus. Individuals or businesses found evading taxes will face restrictions on accessing public services, including passport issuance, business permits, and export-import activities.
“You won’t be able to process your passport if you haven’t paid your taxes,” Luhut stated. “The same applies to business licensing and other government services.”
Enforcing Accountability with AI and Blockchain
The integration of artificial intelligence and blockchain will allow the system to monitor and evaluate data in real time and more transparence. For instance, those seeking to renew licenses or permits will be required to settle outstanding tax obligations first.
Luhut emphasized that the platform’s blockchain technology will ensure data security and transparency across all processes.
Targeted Assistance for Public Welfare
The GovTech system will also be instrumental in disbursing state spending, such as direct cash assistance programs. Beneficiaries will be required to open bank accounts, and their spending will be monitored to ensure compliance with government directives. For example, recipients in rural areas may be encouraged to use funds to purchase local produce, such as eggs and poultry, tracked via barcodes.
“All assistance will be targeted. For example, funds for direct cash assistance will need to be spent on specific items guided by the government,” Luhut noted.
Read also : Core Tax System Faces Complaints, Here’s the Vendor Behind the System
Inspired by Pandemic-Era Tech
Luhut compared the new system’s concept to PeduliLindungi, the mobile app introduced during the COVID-19 pandemic for contact tracing and travel monitoring. The GovTech platform will similarly record data, enabling the government to profile citizens’ purchasing power and enhance service delivery.
By integrating advanced technology, the Indonesian government aims to set a new standard for governance, bolstering transparency and efficiency while ensuring accountability in public administration.
(Raidi/Agung)
