THE IMPACT OF THE SINGLE IDENTITY NUMBER PROGRAM ON INDONESIA’S TAX ADMINISTRATION SYSTEM

Abstract

The implementation of the Single Identity Number (SIN) in Indonesia aims to improve tax administration efficiency, enhance transparency, and increase taxpayer compliance. This study aims to analyze the impact of SIN on Indonesia's tax administration system using a mixed-methods approach that combines qualitative and quantitative analysis. Primary data was collected through interviews with officials from the Directorate General of Taxes (DJP) and surveys of 500 individual and corporate taxpayers. Secondary data was obtained from literature reviews, DJP annual reports, and statistical data from the Central Bureau of Statistics (BPS). The research results indicate that the implementation of SIN has improved tax compliance, as evidenced by a 17% increase in the number of taxpayers who submit their tax returns on time and an 18% rise in active Taxpayer Identification Numbers (NPWP). Tax administration efficiency has also significantly improved, with the processing time for tax returns reduced from 5 days to 2 days, while the duplication rate of NPWP decreased from 12% to 2%. However, the study also identified challenges in the implementation of SIN, such as limitations in technological infrastructure, risks to personal data security, and a lack of public awareness and education.The conclusion of this study is that although SIN has had a positive impact on tax administration, further efforts are needed to enhance technological infrastructure, strengthen data protection, and educate taxpayers to ensure the optimal implementation of the system.