Organizational Transformation: Institutional Structure Design of Directorate General of Taxation to Optimize Tax Revenue

Implementation of Semi-Autonomous Revenue Authority (SARA) in various countries became trend in the last two decades, due to effectiveness of tax administration and tax compliance. SARA is an autonomy or authority granted by government to the state revenue agency in managing institution, relating to status of organization, financing and budget management, policy and improvement of human resources. This study used a qualitative approach, to analyze institutional structure design of Directorate General of Taxation (DGT) in planning SARA implementation. This study provides an alternative organizational design structure of DJP, previously as a directorate under the Ministry of Finance into an institution that has more broadly authority. Using SARA models, DGT as tax authorities can stand semi-autonomous but still coordinating with the Ministry of Finance.