LG CNS is seeking to deepen its presence in Indonesia’s public-sector technology market after receiving an award from the country’s tax authority for its role in developing and supporting a nationwide digital tax administration system.
The company said it received a plaque of appreciation from Indonesia’s Directorate General of Taxes on Sept. 11 in Jakarta, recognizing its contribution to the successful implementation and ongoing technical support of Coretax, the country’s next-generation tax administration platform.
Coretax was introduced as a major government digitalization project to bring previously fragmented tax functions onto a single platform. The system covers a broad range of processes, including taxpayer registration, filing, payments, refunds, audits and collections.
LG CNS, together with Austrian IT company Qualysoft GmbH, completed the system implementation in December 2024. The company subsequently worked with the Indonesian tax authority through March this year to stabilize operations.
Its involvement has continued beyond the initial project. Since the Indonesian tax authority took over system operations in April, LG CNS has provided maintenance support for key infrastructure, including database systems.
The project comes as Indonesia seeks to strengthen tax administration and improve the efficiency of revenue collection through digital technologies. According to Indonesia’s Ministry of Finance and tax authority, tax revenue reached 1,035.7 trillion rupiah (approximately $79.1 billion) in the first half of this year, up about 24.6% from a year earlier.
The Indonesian tax authority attributed the increase to a combination of recovering economic activity and improvements in tax administration and taxpayer compliance, with Coretax contributing to the modernization of the system.
LG CNS is now discussing the next stage of the project with the tax authority, including the integration of artificial intelligence. Potential applications include automating administrative tasks and using data analytics to improve tax-related services and decision-making.
The project also underscores LG CNS’s broader strategy in Indonesia. The company has worked on government digitalization projects for more than two decades, including projects involving the police and finance authorities.
More recently, it has expanded into AI infrastructure. Since last year, LG CNS has been involved in a data center infrastructure project in Jakarta valued at around 100 billion won, further broadening its portfolio in the Indonesian digital market.
Bimo Wijayanto, head of Indonesia’s Directorate General of Taxes, praised LG CNS for its technical expertise and commitment during the Coretax project and expressed hopes for continued cooperation.
Kim Hong-geun, executive vice president and head of the Digital Business Division at LG CNS, said the recognition reflected the company’s close cooperation with the tax authority throughout both system implementation and stabilization.
“Building on our digital transformation capabilities and AI expertise, we will continue working with Indonesia to support its digital government transformation,” Kim said.
