Data analytics in Indonesian tax administration: an institutional arrangement perspective
This study set out to investigate how institutional arrangements are intertwinned in the implementation of data analytics at the Directorate General of Taxation (DGT) as the Indonesian tax authority. Using an interpretive case study method, this study found a better understanding (verstehen) related to some institutional arrangements which, in this context, worked in three observable forms. These are: (1) the DGT ICT Blueprint has explicitly mentioned that data analytics is a pillar and strategic-application in the development of ICTs; (2) the DGT ICT Governance explicitly provides space for ICT development–i.e. applications or infrastructure, with an end-user computing approach so that ICT user units can fulfill their ICT development needs more flexibly in accordance with guidelines in governance; (3) the interaction of informal practices with various formal provisions needs to be formed so that a formal practice situation related to data analytics is a practice that is in accordance with the organization's ICT governance. This study proposes a conceptual framework that could be used to better understand how institutional arrangements play a key role in the process of implementing data analytics, particularly within a wider range of government organizations
 N. Hashimzade, G. Myles, and M. Rablen, “Predictive analytics and the targeting of audits,” J. Econ. Behav. Organ., vol. 124, no. April, pp. 130–145, 2016.
 R. Gregg, “Passion for Change and Good Data: The Right Combination for the DATA Act,” J. Gov. Financ. Manag., vol. 64, no. 2, pp. 48–52, 2015.
 R.-S. Wua, C. S. Ou, H. Lin, S.-I. Chang, and D. C. Yen, “Using data mining technique to enhance tax evasion detection performance,” Expert Syst. Appl., vol. 2012, no. 39, pp. 8769–8777, 2012.
 OECD, “Advanced Analytics for Better Tax Administration Putting Data to Work,” OECD, Paris, 2016.
 IOTA, “Applying Data and Analytics in Tax Administration,” Intra-European Organisation of Tax Administrations (IOTA), 2016.
 E. Stankeviciusa and L. Leonas, “Hybrid approach model for prevention of tax evasion and fraud,” in 20th International Scientific Conference Economics and Management - 2015 (ICEM-2015), Kaunas, Lithuania, 2015.
 J. Martikainen, “Data Mining in Tax Administration - Using Analytics to Enhance Tax Compliance,” Master Thesis, Aalto University School of Business, Helsinki, Finland, 2012.
 D. Cleary, “Predictive Analytics in the Public Sector: Using Data Mining to Assist Better Target Selection for Audit,” Electron. J. E-Gov., vol. 9, no. 2, pp. 132–140, 2011.
 Microsoft and PwC, “Digital Transformation of Tax Administration,” Microsoft and PricewaterhouseCoopers Belastingadviseurs N.V., Netherland, 2017.
 ICAEW, “Data analytics for external auditors,” International Accounting, Auditing & Ethics (IAAE), 2016.
 A. Darono and Febrian, “Tax Audit Data Analytics using Power BI: a Proof-of-Concept within an Indonesian Case,” in Analytics for Management and Economics Conference, HSE University - St Petersburg, 2019.
 DJP, “Cetak Biru Teknologi Informasi Dan Komunikasi Direktorat Jenderal Pajak Kementerian Keuangan Republik Indonesia Tahun 2015-2019:” Direktorat Jenderal Pajak (DJP), 2015.
 DJP, “Laporan Tahunan Direktorat Jenderal Pajak 2016,” 2016.
 DJP, “Laporan Tahunan Direktorat Jenderal Pajak 2017,” 2017.
 I. Djuniardi, “Next Generation Data Analysis The Implementationof Big Datain Directorate General of Taxes Republic of Indonesia,” presented at the 13th ATAIC Annual Technical Conference, Melaka, Malaysia, 2016.
 L. Tomar, W. Guicheney, H. Kyarisiima, and T. Zimani, “Big Data in the Public Sector: Selected Applications and Lessons Learned,” Inter-American Development Bank, 2016.
 W. Jho and K. J. Song, “Institutional and technological determinants of civil e-Participation: Solo or duet?,” Gov. Inf. Q., vol. 2015, no. 32, pp. 488–495, 2015.
 R. Kling, H. Rosenbaum, and S. Sawyer, Understanding and Communicating Social Informatics: A Framework for Studying and Teaching the Human Contexts of Information and Communication Technologies. Medford, New Jersey: Information Today, 2005.
 W. J. Orlikowski, “Using Technology and Constituting Structures: A Practice Lens for Studying Technology in Organizations,” Organ. Sci., vol. 11, 2000.
 B. Haley, “Getting the Institutions Right: Designing the Public Sector to Promote Clean Innovation,” vol. 42, no. S1, pp. S54–S66, 2016.
 S.-J. Eom, “The Institutional Dimension of e-Government Promotion: A Comparative Study on Making ‘Business Reference Model (BRM)’ in the U.S. and Korea,” The National Center for Digital Government is supported by the National Science Foundation under, NCDG Working Paper No. 10-001, 2010.
 C. R. Williamson, “Informal institutions rule: institutional arrangements and economic performance,” Public Choice, vol. 2009, no. 139, pp. 371–387, 2009.
 E. T. Meyer, “Socio-technical Interaction Networks: A discussion of the strengths, weaknessesand future of Kling’s STIN model,” in IFIP International Federation for Information Processing, Volume 223, Social Informatics: An Information Society for All? In Remembrance of Rob Kling, J. Berleur, M. I. Numinen, and J. Impagliazzo, Eds. Boston, MA: Springer, 2006, pp. 37–48.
 D. C. North, Understanding the Process of Economic Change. Princeton, New Jersey: Princeton University Press, 2005.
 P. G. Klein, “New Institutional Economics,” The History and Methodology of Law and Economics (Encyclopedia of Law and Economics). Edward Elgar, pp. 456–489, 1999.
 S. S. Dawes, “Foreword,” in Enacting Electronic Government Success An Integrative Study of Government-wide Websites, Organizational Capabilities, and Institutions, vol. 31, New York: Springer, 2012, pp. vii–viii.
 M. A. Avila-Maravilla and L. F. Luna-Reyes, “Institutional Arrangements in Digital Government Success: The Case of State Government Web Portals in Mexico,” in Proceeding ICEGOV ’18 Proceedings of the 11th International Conference on Theory and Practice of Electronic Governance, Galway, Ireland, 2018, pp. 73–80.
 L. F. Luna-Reyes and J. R. Gil-Garcia, “Understanding the co-evolution of institutions, technology, and organizations: the enactment of the state government portal of Puebla,” p. 10, 2013.
 J. R. Gil-Garcia, “Towards a smart State? Inter-agency collaboration, information integration, and beyond,” J. Inf. Polity, vol. 17, no. 3, 2012.
 N. K. Hanna, C. Z.- Qiang, K. Kimura, and S. C. Kuek, “National E-Government Institutions: Functions, Models, and Trends and with Kaoru Kimura and Siou Chew Kuek,” in Information and Communications for Development 2009, The World Bank, 2009.
 B. Yazan, “Three Approaches to Case Study Methods in Education: Yin, Merriam, and Stake,” Qual. Rep., vol. 20, no. 2, pp. 134–152, 2015.
 S. Baskarada, “Qualitative Case Study Guidelines,” Qual. Rep., vol. 19, no. 40, pp. 1–18, 2014.
 M. Keutel and M. Werner, “Interpretive case study research: experiences and recommendations,” in MCIS 2011 Proceedings, 2011.
 R. Piekkari, C. Welch, and E. Paavilainen, “The Case Study as Disciplinary Convention Evidence From International Business Journals,” Organ. Res. Methods, vol. 12, no. 3, pp. 567–89, 2009.
 R. K. Yin, Case Study Research and Applications: Design and Methods - Sixth Edition, 6th ed. California: SAGE Publications Ltd., 2018.
 J. W. Creswell, Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Thousand Oaks, California: SAGE Publications, 2013.
 L. Oats, “Tax as a Social and Institutional Practice,” in Taxation A Fieldwork Research Handbook, L. Oats, Ed. 2012, pp. 196–206.
 W. L. Neuman, Social Research Methods: Qualitative and Quantitative Approaches, 7th ed. Essex, England: Pearson Education Limited, 2014.
 D. M. Fetterman, “Emic/Etic Distinction,” Encyclopedia of qualitative research methods. SAGE Publications Ltd, p. 249, 2008.
 N. Ardista, P. Purbandini, and T. Taufik, “Rancang Bangun Data Warehouse Untuk Pembuatan Laporan dan Analisis pada Data Kunjungan Pasien Rawat Jalan Rumah Sakit Universitas Airlangga Berbasis Online Analytical Processing (OLAP) ,” J. Inf. Syst. Eng. Bus. Intell., vol. 3, no. 1, pp. 40–51, 2017.
 S. D. Purnamasari and A. Wijaya, “Dashboard Sistem Informasi Eksekutif Penjualan,” J. Ilm. MATRIK, vol. 19, no. 3, pp. 207–216, 2017.
 R. Mukherjee and P. Kar, “A Comparative Review Of Data Warehousing ETL Tools With New Trends and Industry Insight,” in 2017 IEEE 7th International Advance Computing Conference, 2017, pp. 943–948.
 G. Wahyudi, “Implementasi Data Warehouse dan Business Intelligence untuk Pemantauan Penerimaan Pajak Daerah: Studi Kasus pada Dinas Pelayanan Pajak DKI Jakarta,” Tesis Magister, Universitas Indonesia, Jakarta, 2015.
 M. Kromer and D. Yu, “Adopting BI in an Organization Using Proof-of-Concept Techniques,” Bus. Intell. J., vol. 13, no. 2, pp. 7–12, 2008.
 S. Chaudhuri and U. Dayal, “An Overview of Data Warehousing and OLAP Technology,” presented at the ACM Sigmod Record, March 1997, 1997.
 D. J. Power, C. Heavin, J. McDermott, and M. Daly, “Defining business analytics: an empirical approach,” J. Bus. Anal., vol. 1, no. 1, pp. 40–53, 2018.
 C. Milner and B. Berg, “Tax Analytics Artificial Intelligence and Machine Learning–Level 5,” PwC, 2017.
 M. Cao, R. Chychyla, and T. Stewart, “Big Data Analytics in Financial Statement Audits,” Account. Horiz., vol. 29, no. 2, pp. 423–429, 2015.
 L. Duan and Y. Xiong, “Big data analytics and business analytics,” J. Manag. Anal., vol. 2, no. 1, pp. 1–21, 2015.
 O. De Bonhom et al., “Data analytics: the future of audit,” Instituut van de Bedrijfsrevisoren, Brussel, 2018.
 A. Veit, “Swimming upstream: leveraging data and analytics for taxpayer engagement – an Australian and international perspective,” EJournal Tax Res., vol. 16, no. 3, pp. 474–499, 2019.
 K. A. Houser and D. Sanders, “The Use of Big Data Analytics by the IRS: Efficient Solutions or the End of Privacy as We Know It?,” Vanderbilt J. Entertain. Technol. Law, vol. 19, no. 4, pp. 871–872, 2017.
 F. Carina and T. Thompson, “Do IRS Computers Dream About Tax Cheats? Artificial Intelligence and Big Data in Tax Enforcement and Compliance,” J. Tax Pract. Proced., no. Feb-Mar, pp. 43–47, 2019.
 A. Darono, “Institutional arrangement in the implementation of government’s ESB: the case of Indonesia,” in 2018 IEEE 5th International Congress on Information Science and Technology (CiSt), Marrakech, Morocco, 2018, pp. 18–23.
 D. C. G. Brown and S. Toze, “Information governance in digitized public administration,” Can. Public Adm., vol. 60, no. 4, pp. 581–604, 2017.
 W. F. Sorte Junior, “IT governance in the Brazilian central government: developments and constraints,” Int. J. Technol. Policy Law, vol. 1, no. 4, p. pp 335– 349., 2014.
 P. J. C. Panagiotopoulos, “An Institutional Perspective on Information and Communication Technologies in Governance,” Ph.D. thesis, Department of Information Systems and Computing September - Brunel University, London, UK, 2011.
 J. E. Fountain, “Building an Enterprise Government: Creating an ecosystem for cross-agency collaboration in the next administration,” Partnership for Public Service and IBM Center for Business of Government, Washington, DC, 2016.
 L. Ayres, “Thematic Coding and Analysis,” Encyclopedia of qualitative research methods. pp. 867–868, 2008.
 R. E. Stake, Multiple Case Study Analysis. Thousand Oaks, CA: Guilford Press, 2006.
 M. Raharjo, “Studi Kasus Dalam Penelitian Kualitatif,” Univ. Islam Negeri Maulana Malik Ibrahim Malang, pp. 1–26, 2017.
 J. A. Maxwell and M. Chmiel, “Generalization in and from Qualitative Analysis,” in The SAGE Handbook of Qualitative Data Analysis, U. Flicks, Ed. London: SAGE Publications Ltd., 2014.
 B. C. Stahl, “What Does the Future Hold? A Critical View of Emerging Information and Communication Technologies and Their Social Consequences,” in IFIP WG 8.2Working Conference, Turku, Finland, 2011, pp. 59–76.
 Dit. TTKI, “Tata Kelola Teknologi Informasi dan Komunikasi Di Direktorat Jenderal Pajak,” presented at the Sosialisasi Tata Kelola TIK DJP, Pusdiklat Pajak, 2015.
 I. Djuniardi, “Journey to Big Data,” Pusintek Kementerian Keuangan, 2018.
 G. Booch, J. Rumbaugh, and I. Jacobson, Unified Modeling Language User Guide. Reading, Massachusetts: Addison Wesley, 1998.
 DJP, “Surat Edaran Nomor: SE-54 PJ/2011 tentang Pedoman Pengembangan Aplikasi Dan Infrastruktur TIK.” 2011.
 AICPA, “An Overview of Data Management,” ACIPA - IMTA EC — Data Management Task Force, 2013.
 DAMA International, DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition). Technics Publications, 2017
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
JATIS oleh http://jurnal.mdp.ac.id/index.php/jatisi disebarluaskan di bawah Lisensi Creative Commons Atribusi-BerbagiSerupa 4.0 Internasional.