LAPAK ON (Layanan Pajak Online/Online Tax Services) - Observatory of Public Sector Innovation

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LAPAK ON is an innovation developed in early 2022 to accommodate changes in world lifestyle shifting from physically to everything-online activities after post Covid-19 occurred. This innovation was aimed for public and employee to encourage digital economy in the area of taxation administration. While this may be seem to be a simple innovation, many governments still depend on physical meeting and documenting for managing their tax administration. This innovation can cut out the costs, time, and efforts requested to finish the official obligations.

Innovation Summary

Innovation Overview

The WHO declared a "public health emergency of international concern" on January 30, 2020. This date has been seen as the beginning of a shifted lifestyle going from physically to everything-online.

While in 2022 Covid-19 was put down from public health emergency, lifestyles of doing activities remotely have been implemented into society. Of course, people also want their public administration, especially taxation, to be remotely taken care of. So, trying to answer to that challenge, Bogor City Local Revenue Agency developed an innovation for an online taxation service through a web-based application, which was published in June 2023 as Layanan Pajak Online (Lapak ON).

The objective of this application is to accommodate this online lifestyle and keep up with economy digital so it can cut out the costs, time, and efforts required to finish official obligations. It is also boosting the transparency of bureaucracy in government. This application is aimed for people and employee of the Local Revenue Agency, especially in Bogor City.

LAPAK ON is set to make everything online, so that people can monitor digitally their public administration and be less dependent of direct interactions with civil servants. Thus, this solution is expected to ensure that all of the arrangements of the taxation are moved online, and do not stay in the form of physical documents.

Innovation Description

What Makes Your Project Innovative?

Indonesia's public administration procedures, notably in local government, has received criticisms for delays, complexity, and a lack of transparency, fostering inefficiency and corruption risks. LAPAK ON was introduced to enhance public service quality, marking it the first implementation of such an innovation in Indonesian local government.

This digital solution swiftly transitions services from the physical to digital world. LAPAK ON has become a vital tool in Bogor City's Local Revenue Agency, streamlining both public submissions and employee request processing. This innovation also ensures transparency in document tracking. It addresses corruption risks by introducing a queue system, eliminating bribery opportunities. While not a definitive solution, LAPAK ON effectively reduces administrative challenges, contributing to improved public service.

What is the current status of your innovation?

LAPAK ON was developed in 2022 and launched in June 06, 2023 via the legal use of a Local Regulation of Mayor. Now the innovation is actively used for 2 years and there are plans to keep developing it this year.

Innovation Development

Collaborations & Partnerships

In this innovation process, the agency was collaborating for making this innovation come true. Proposed during the COVID-19 period, this solutions was idealized by employees and realized by Pranata Komputer Ahli Muda, given his skill in computerization and coding.

Users, Stakeholders & Beneficiaries

This innovation was created to address the requests regarding to tax administration, especially property tax, so users can take care of their taxes online and digitally. LAPAK ON also enables employees to switch their existent behaviors (e.g. handling physical) to new digital skills. The companies that also want to take care of their property taxation can use the application as well.

Innovation Reflections

Results, Outcomes & Impacts

• What are the results and impacts?
1. All of the property tax administration is now done digitally.
2. Reduced the time spent for employees and users to finish the request.
3. Reduced costs on both public and agency sides.
4. Minimized human errors.

• How is it measured?
Direct Observation

• What are the foreseeable results and impacts in the future?
We expect that all of the administrative procedures in taxation, not only the property tax, use LAPAK ON as its primary tool.

Challenges and Failures

• Challenges:
One challenge was to efficiently maximize the number of employees and the budget allocated by the agency to make this innovation possible. Other is that, in Bogor City Local Revenue Regency, the employees who have the skills for coding are limited in number. Limited budget was also one of the issues when developing LAPAK ON. The agency was not able to hire other employees to help developing this innovation.

Conditions for Success

LAPAK ON required only minimal tools to make — a coding device and internet access. The access from users only demands basic requirements, highly facilitated by the prevalent use of smartphones and personal computers. Those two requirements, one to the agency, the other to users, are easy to met. Policies and regulations, including Mayor Regulation, were already in place. Leadership played a pivotal role: the high-level mandate to LAPAK ON for requests related with property tax, contributed to the engagement of employees. The mayor and vice mayor actively contributed to the official launch in 2023. Developed by a young computer expert in coding and computerization, LAPAK ON embodies the values of Ber-AKHLAQ—Service-oriented, Accountable, Competent, Harmonious, Loyal, Adaptive, and Collaborative.

Replication

Lessons Learned

Integrity and adaptability are values that public service should endorse in this era. Having a good public service in taxation plays a big role in the users' willingness to pay their taxes. Simply put, people are not incentivised to pay their tax if the service is bad. With LAPAK ON, we can increase the quality of public service in Bogor City, while it also contributes to increase local revenue from tax, especially property tax.