TAX REFORM IN INDONESIA: THE TRANSFORMATION FROM DIRECTORATE GENERAL OF TAXES TO THE STATE REVENUE AGENCY

Objective: This article is a critical review of tax reform in Indonesia which began in the early 1980s with various fundamental changes such as the formation of new laws, the start of the self-assessment tax collection system, organizational structure reform, modernization of the taxpayer service system. However, in reality, Indonesia's tax ratio, especially in the last 10 years, is still quite low compared to neighboring countries in ASEAN. Theoretical Framework: Positive theoretical relationship between tax revenue, tax ratio, tax reform and agenda setting of the establishment of the State Revenue Agency which is directly responsible to the president. The agenda setting of this tax issue is to describe the issues that are considered necessary to be implemented. Method: The research methodology used is a qualitative descriptive method. In conducting this study, researchers used primary data and secondary data. Primary data by interviewing several executive officials at the Directorate General of Taxes. While secondary data was obtained from the Annual Report, Performance Report and Financial Report of the Directorate General of Taxes during 2016 - 2023, scientific articles, books, information from the mass media or organizations (OECD, IMF, Asian Development Bank), and other relevant sources of information. Results and Discussion: This research finds out that the trend of the tax ratio after several decades of tax reform in Indonesia has fluctuated and tends to far away from Indonesia's ideal tax ratio of 15%. Therefore, it is important for the government to critically focus on the formation of a state revenue agency that is directly responsible to the president after several decades of the state revenue agency being responsible to the Ministry of Finance. Research Implications: It is recommended to implement a State Revenue Agency that is directly responsible to the president with a good governance concept to increase the tax ratio in Indonesia. Originality/Value: The change of government of the elected President in October 2024 is the right momentum to realize the formation of a state revenue agency that is directly responsible to the President which aims to increase state revenue, which will have an impact on increasing Indonesia's tax ratio, this will have social and economic benefits. And can be a new milestone for Indonesia in order to increase the ability to mobilize state revenue sources and increase the state's ability to realize Indone