JRSSEM 2022, Vol. 01, No. 12, 2067 – 2075

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

DOI : 10.36418/jrssem.v1i12.220 https://jrssem.publikasiindonesia.id/index.php/jrssem/index

ANALYSIS OF TAX INNOVATION BREAKTHROUGH ON E-

BPHTB SYSTEM TO MINIMIZE FRAUD IN THE LOCAL

REVENUE OFFICE OF SAMARINDA

Kristin Wulansari

Della Olivia Caterina Kalangit

Sailawati

1,2,3

Politeknik Negeri Samarinda, Samarinda, Indonesia

e-mail: kristinwulansari@polnes.ac.id

, dellaolivia@polnes.ac.id

, sailawati@polnes.ac.id

*Correspondence: kristinwulansari@polnes.ac.id

Submitted: 27 June 2022, Revised: 05 July 2022, Accepted: 15 July 2022

Abstract. The COVID-19 pandemic is a massive health calamity that will also result in an impending

global economic restructuring. The impact of COVID-19 Pandemic is extensive and has presented

enormous challenges to the world as a whole. A full economic recovery from the COVID-19 is

unlikely. The governments must building resilience and leading in this time of crisis to a new phase

new normal in the COVID-19 pandemic. Online service (e-Government) is a solution but the

challenge in the success of online service (e-Government) implementation. The purpose of this

research is to define the processes, challenges and opportunities for the application of the e-BPHTB

systems in the Regional Revenue Office of Samarinda. A qualitative descriptive methodology is

used in this research. The results of this research suggest that the e-BPHTB system implementation

has been successful. Investment in e-BPHTB systems enhances performance, efficacy and quality

of service in The Local Revenue Agency of Samarinda. The result also showed that the challenges

of e-BPHTB implementation, such as : the quality infrastructure system, the complicated of regional

regulations, and the taxpayer’s awareness so bad.

Keywords: e-government; innovation breakthrough; e-BPHTB system; fraud.

Kristin Wulansari, Della Olivia Caterina Kalangit, Sailawati

| 2068

DOI : 10.36418/jrssem.v1i12.220 https://jrssem.publikasiindonesia.id/index.php/jrssem/index

INTRODUCTION

To slow down transmission and lower

COVID-19-related mortality, every nation

should be putting in place a complete

package of policies that are tailored to its

capabilities and situation, government

must introduced physical distancing

measures and population-level movement

restrictions, Planning for a gradual

transition away from such limits that would

allow for the sustained suppression of

transmission at a low level while allowing

for the restart of some aspects of economic

and social life is urgently needed, namely

the new normal era (Liu et al., 2021);

(Waibel & Gaillard, 2017).

An uncontrolled upsurge in COVID-19

transmission is expected to result from the

premature lifting of physical distancing

measures without careful planning, in the

lack of scaled up public health and clinical

care resources, and in the absence of

improved clinical treatment. This makes the

organization faced with the conditions of

organizational reform, namely adjustment

through a process of change in the new

normal era, so that a model of bureaucratic

change is needed that is able to answer

challenges, in the bureaucracy it must

optimize the use of technology,

information and communication in all

matters in the government sector

(Lumbanraja, 2020). So online service (e-

Government) is a solution, with prioritized

by carefully risk.

In this case the limited space for

movement due to following health

protocols and the demands of the

community that their rights as citizens to be

served. To deal with this, the government is

trying to implement an electronic-based

system with e-Government support,

transformation of the manual service

model which is characterized by face-to-

face services move to electronics by

utilizing technology. The Local Revenue

Agency of Samarinda has therefore

developed the e-BPHTB system.

(Gasol, K&Stefkova, K. 2017) said, "The

information and the use of ICT in citizens'

everyday life creates a pressure on the

government to provide public services more

efficiently, more transparently and through

the internet (Gasova & Stofkova, 2017)."

Information technology, besides being

sophisticated, also creates pressure for the

government to provide public services that

are more efficient, transparent, and

provided through the internet. Abri and

Mahmoudzadeh, in their research,

explained that information technology has

an impact on productivity and efficiency in

an organization; A public organization that

uses technology will be able to raise the

standard of its services (Abri &

Mahmoudzadeh, 2015). Additionally,

technology can improve government

responsiveness, democratization,

productivity, efficiency, and transparency

(Lee et al., 2018).

The implementation of e-BPHTB system

is expected to provide benefits, especially

in improving of BPHTB services. The

application of e-BPHTB system aims to

simplify the BPHTB process. The process no

longer uses offline mechanisms and instead

uses electronics. The successful

implementation of e-BPHTB system, its

potential, and its benefits can be seen from

the support of the government and the

Organization of the Local Apparatus that

2069 | Analysis of Tax Innovation Breakthrough on E-Bphtb System to Minimize Fraud in the

Local Revenue Office of Samarinda

implemented it.

This paper aims to review changes in

the bureaucracy in the new normal era, to

analyse the implementation of e-BPHTB to

define the processes, challenges and

opportunities for the application of the e-

BPHTB systems in the Regional Revenue

Office of Samarinda.

There are many definitions for e-

government such as “The delivery of

government information and services online

through the Internet or other digital means”,

In order to provide information and

services to residents, businesses, and other

government agencies, e-Government is

defined as leveraging the internet and the

world wide web. Finally, define e-

government as using information and

communication technology, particularly

the Internet, as a tool to provide residents,

businesses, and employees with better

government services.

According to Ahmad, public

administration is the process of two or

more people working together to logically

accomplish a common objective. The use of

information technology to enhance the

quality of government services is known as

"e-government," and it is a new method of

communication between the government,

the public, and other interested parties., e-

Government to Citizens is a Publish service,

which is a one-way communication, where

the government publishes various data and

information that it has to be directly and

freely accessed by the public and other

interested parties via the internet.

The use of an e-Government idea has a

number of advantages. Quotes Tony Blair

and Al Gore as saying that among the

advantages of e-Government are: (1) better

government service to its stakeholders; (2)

more transparency, control, and

accountability; (3) decreased administrative

costs, relations, and interactions; (4)

opportunities for new sources of income;

(5) new community environments that

quickly and accurately respond to

problems faced by various global changes;

(6) empowerment of the community and

other parties.

Public service is, according to

Sinambela, the fulfillment by state

administrators of the community's wishes

and needs. The results of studies and

analysis by the Harvard JFK School of

Government on digitization concepts in the

public sector show that digitization

initiatives must have three main elements:

help, power, and value (Gasova & Stofkova,

2017).

Innovation Breakthrough

Omnipresent computing is a new

generic model of technology that

encompasses several different

technologies. Instead, it portrays

information and communication settings

where various items, people, information,

computers, and the physical environment

are associated with computer sensors (such

as radio frequency tags, wearable

technology, smart watches), other devices

(tablets, and mobile smartphones). A

different kind of world, "one that is

hyperconnected and data saturated, a world

where an Internet of everyone is linked to an

Internet of everything," is created by the

synthesis of these breakthroughs. Despite

how disruptive they are, these new

technologies did not arise out of nowhere.

Instead, numerous other technological

Kristin Wulansari, Della Olivia Caterina Kalangit, Sailawati

| 2070

advancements came before them, and as

we'll see, they had a significant impact on

organizations and work during the past few

decades. As Murray (2015, p. 6) contends,

“Together these innovations are hurtling us

toward a new industrial revolution. Savvy

corporate leaders know they have to either

figure out how these technologies will

transform their businesses or face disruption

by others who figure it out first (Evans &

Saunders, 2015).”

The digital age began with the

development of computers and

communication technology, but we must

keep in mind that these technologies are

continually evolving. Indeed, the four

phases of the digital age of information and

communication technology have led to a

number of changes in the ways that

economic activity is conducted. Human

activity has been able to expand

continuously in the electronic space thanks

to ongoing developments in information

and communication technology.

(Shangguan et al., 2020).

Figure 1. Stages of information and communication technology within the digital era.

Fraud

Fraud is an intentional act involving the

use of deception that results in a material

misstatement of financial statements. Asset

theft, financial statement fraud, and

corruption are the three categories of

fraud. Asset misappropriation refers to the

theft or improper use of an organization's

resources. For instance, inventory theft and

theft of cash. The financial records will be

altered once cash or inventory is stolen to

hide the fraud. Financial statement fraud is

the deliberate manipulation of financial

statements to falsely represent the true

state of a business. It may manifest itself in

a number of ways, including the

falsification or alteration of accounting

records or supporting documentation, the

incorrect application of accounting

principles, and the omission of

transactions, events, or other data. The

exploitation or abuse of a position (whether

public or corporate) for personal gain is

included in the traditional definition of

corruption. Conflicts of interest, bribery,

unlawful gratuities, and economic extortion

are among the types of corruption that

could occur (Baines et al., 2020);

(Zyglidopoulos et al., 2009).

2071 | Analysis of Tax Innovation Breakthrough on E-Bphtb System to Minimize Fraud in the

Local Revenue Office of Samarinda

Land and building acquisition duty

(BPHTB)

According to Article 5 of Law

No.4/2011, the tax rate of BPHTB is

calculated at 5% (five percent) of the

Acquisition Value of the Taxable Object

(“NPOPKP”). A 5% Land and Building

Transfer Duty (BPHTB) is due from people

or businesses who acquire rights to land or

buildings. Based on the higher of the

transaction value or the assessed value, the

5 percent duty is calculated (Schellhammer

et al., 2017).

Regional taxes, which are administered

by PDRD Law, include BPHTB as well. The

execution of a court order with full legal

effect, business mergers, consolidations,

expansions, prize deliveries, grants,

inheritances, contributions to corporations,

rights separations, buyer designation in

auctions, and trade-in and sale-purchase

agreements are examples of qualifying land

and building rights transfers.

BPHTB is based on the NJOP of the

relevant land and building rights, which is

typically greater than the market

(transaction) value or the Tax Object

Acquisition Value (Nilai Perolehan Objek

Pajak/NPOP), which is the basis for BPHTB.

Applying the relevant NPOP to the

applicable duty rate (5%) less a permitted

non-taxable threshold yields the tax owed

on a specific event. The minimum non-

taxable threshold amount varies by

location and is Rp. 60 million, with Rp. 300

million being the starting point for an

inheritance. Government regulation may

alter the non-taxable level.

When the pertinent deed of land and

building right transfer is signed in front of

a public notary, BPHTB is normally due on

that day. The obligation in a business

merger, consolidation, or expansion is

payable on the day the applicable merger,

consolidation, or expansion act is signed. In

an auction, the obligation is due on the

date the authorized officer signs the

Auction Report.

METHODS

With a descriptive approach, this

analysis incorporates qualitative research.

The introduction of the e-BPHTB system

framework for reporting of Land and

building acquisition duty services until

payment process at the Regional Revenue

Office of Samarinda is the subject of this

study. In addition, this study discusses the

challenges and opportunities of the

Regional Revenue Office of Samarinda for

the e-BPHTB system for reporting of Land

and building acquisition duty services until

payment process. Main and secondary data

sources provide data sources.

RESULTS AND DISCUSSION

Implementing an e-BPHTB System

1. Processes of e-BPHTB System

The Local Revenue Agency of

Samarinda applies e-BPHTB system to

simplify the BPHTB process for tax

payer. Where the determination of this

system strategy was taken by the Head

of the Local Revenue Agency of

Samarinda during the new normal era,

so that there would be an increase in

organizational performance in the

achievement of local revenue even in

the COVID-19 pandemic conditions.

Innovation Breakthrough on e-BPHTB

system as shown in Figure 2 and Figure

Kristin Wulansari, Della Olivia Caterina Kalangit, Sailawati

| 2072

Figure 2. e-Government Concept in the Local Revenue Agency of Samarinda

Figure 3. e-BPHTB’s Method in the Local Revenue Agency of Samarinda

2. Challenges of e-BPHTB System

Based on the research, the Local

Revenue Agency of Samarinda faces

several challenges in implementing e-

BPHTB system. These challenges are as

follows:

a. The Quality Infrastructure System

In the theory of infrastructure

availability is a 50% indicator of the

success of a digitalization concept.

E-BPHTB is still in a period of

transition from the offline to the

online system, and this system will

continue to experience

2073 | Analysis of Tax Innovation Breakthrough on E-Bphtb System to Minimize Fraud in the

Local Revenue Office of Samarinda

improvements until the refinement

stage, so the technology

infrastructure is in the form of tools

to used by Local Revenue Agency of

Samarinda to run the e-BPHTB

System. The infrastructure like fast

internet network must be upgrade.

b. The Complicated of Regional

Regulations

To implement a policy,

underlying rules are needed. There

needs to be a synchronization

between central regulations and

local regulations. The presence of

local laws will support local

governments and communities. The

Local Revenue Agency of

Samarinda still does not have rules

for e-BPHTB system itself.

c. The taxpayer’s awareness so bad

Not all people of Samarinda

Regency understand how to use

information technology, and

people still often come to the Local

Revenue Agency of Samarinda to

3. Opportunities of e-BPHTB System

Researchers found several

opportunities in the implementation of

e-BPHTB system in the BPHTB service at

the Local Revenue Agency of

Samarinda. These opportunities are as

follows:

a. Increase the effectiveness and

efficiency to register BPHTB service.

b. Improving the quality and

performance of the Local Revenue

Agency of Samarinda.

Benefit of e-BPHTB System

Benefits of e-BPHTB System in New

Normal on the Local Revenue Agency of

Samarinda is :

1. Facilitate the relation of taxpayer’s

with all stakeholders and efficiently

of process , easily and in real time;

2. Assist taxpayer’s in monitoring

reporting of Land and building

acquisition duty services until

payment process in one location;

3. Facilitating the tax payer’s of data

report by self. e-BPHTB is a type of

e-service (electronic service);

4. Opportunities for new sources of

income in The COVID-19 pandemic;

5. Increased transparency, control,

and accountability;

6. minimize fraud occurrences by

implementing e-bphtb system;

7. Reduced administrative costs,

relations, and interactions (physical

distancing).

CONCLUSIONS

Benefits of Innovation Breakthrough on

e-BPHTB System in New Normal on the

Local Revenue Agency of Samarinda is : (1)

Facilitate the relation of taxpayer’s with all

stakeholders and efficiently of process ,

easily and in real time; (2) Assist taxpayer’s

in monitoring reporting of Land and

building acquisition duty services until

payment process in one location; (3)

Facilitating the taxpayer’s of data report by

self. e-BPHTB is a type of e-service

(electronic service); (4) Opportunities for

new sources of income in The COVID-19

pandemic; (5) Increased transparency,

control, and accountability; (6) minimize

fraud occurrences by implementing e-

bphtb system; (7) Reduced administrative

Kristin Wulansari, Della Olivia Caterina Kalangit, Sailawati
                                                                                
| 2074 
costs,  relations,  and  interactions  (physical 
distancing). e-BPHTB  System  showed  that 
the implementation of the e-BPHTB system 
was successful for increases performance in 
The  Local  Revenue  Agency  of  Samarinda. 
The result also showed that the challenges 
of  e-BPHTB  implementation,  such  as:  the 
quality  infrastructure  system,  the 
complicated  of  regional  regulations,  and 
the taxpayer’s awareness so bad. 
 
REFERENCES 
 
Abri,  A.  G., &  Mahmoudzadeh,  M.  (2015). 
Impact  of  information  technology  on 
productivity  and  efficiency  in  Iranian 
manufacturing  industries.  Journal  of 
Industrial  Engineering  International, 
2(11), 143–157. 
 
Baines,  D.,  Nørgaard,  L.  S.,  &  Rossing,  C. 
(2020).  The  Fourth  Industrial 
Revolution:  will  it  change  pharmacy 
practice?  Research  in  Social  and 
Administrative  Pharmacy,  6(9),  1279–
1281. 
https://doi.org/https://doi.org/10.1016
/j.sapharm.2019.04.003 
 
Evans, C., & Saunders, O. (2015). A world of 
copper:  globalizing  the  Industrial 
Revolution, 1830–70. Journal of Global 
History,  2(10),  3–26. 
https://doi.org/https://doi.org/10.1017
/S1740022814000345 
 
Gasova,  K.,  &  Stofkova,  K.  (2017).  E-
government as a quality improvement 
tool  for  citizens’  services.  Procedia 
Engineering,  2(3),  225–230. 
https://doi.org/10.1016/j.proeng.2017.
06.039 
 
 Gasol, K&Stefkova, K. 2017. E-Government 
as  a  quality  improvement  tool  for 
citizens’ services. International scientific 
conference on sustainable, modern and 
safe  transport.  192,  225-230. 
https://doi.org/10.1016/j.proeng.2017.
06.039 
 
Lee, K., Choi, S. O., Kim, J., & Jung, M. (2018). 
A  Study  on  the  factors  affecting 
decrease in the government corruption 
and  mediating  effects  of  the 
development  of  ICT  and  E-
Government—a cross-country analysis. 
Journal of Open Innovation: Technology, 
Market,  and  Complexity,  4(3),  41. 
https://doi.org/https://doi.org/10.3390
/joitmc4030041 
 
Liu,  S.,  Wang,  S.,  Liu,  X.,  Gandomi,  A.  H., 
Daneshmand, M., Muhammad, K., & De 
Albuquerque,  V.  H.  C.  (2021).  Human 
memory update strategy: a multi-layer 
template  update  mechanism  for 
remote  visual  monitoring.  IEEE 
Transactions on Multimedia, 2(3), 2188–
2198. 
 
Lumbanraja,  A.  D.  (2020).  Urgensi 
Transformasi  Pelayanan  Publik  melalui 
E-Government  Pada  New  Normal  dan 
Reformasi  Regulasi  Birokrasi. 
Administrative  Law  and  Governance 
Journal,  3(2),  220–231. 
https://doi.org/https://doi.org/10.1471
0/alj.v3i2.220-231 
 
Schellhammer,  S.,  Klein,  S.,  &  Ebner,  E. 
(2017).  Primary  prevention  for 
employees  in  the  Information  Age 
Organization.  Health  Policy  and 
Technology,  6(1),  72–82. 
https://doi.org/https://doi.org/10.1016
/j.hlpt.2016.08.005 
 
Shangguan,  Z.,  Wang,  M.  Y.,  &  Sun,  W. 
(2020).  What  caused  the  outbreak  of 
COVID-19  in  China:  From  the 
perspective  of  crisis  management. 

2075 | Analysis of Tax Innovation Breakthrough on E-Bphtb System to Minimize Fraud in the

Local Revenue Office of Samarinda

International Journal of Environmental

Research and Public Health, 17(9).

https://doi.org/10.3390/ijerph1709327

Waibel, M., & Gaillard, N. (2017). The Icarus

Syndrome: How Credit Rating Agencies

Lost their Quasi-Immunity. University of

Cambridge Faculty of Law Research

Paper, 1(2), 71.

https://doi.org/10.2139/ssrn.2916646

Zyglidopoulos, S. C., Fleming, P. J., &

Rothenberg, S. (2009). Rationalization,

overcompensation and the escalation

of corruption in organizations. Journal

of Business Ethics, 4(1), 65–73.

for possible open access publication

under the terms and conditions of the Creative

Commons Attribution (CC BY SA) license

(https://creativecommons.org/licenses/by-sa/4.0/).