Clean business practice and modern bureaucracy are aspects to encourage a better economy condition. Business assurance and the compliance of tax duties payment are one of the keys to succeed of this nation’s development. One thing that is just as important in this nations development is corruption eradication which becomes a responsibilty for all parties, either as an individual, organization, or collectively in the field of government, parliament, law enforcer, business parties, and citizens.
Therefore, all of the parties have to commit to make consistent, continuous, and cooperative effort in preventing the corruption. This effort is actualized with the availability of accountable and transparent policy, also the availability of public participation.
One of the recent policy breakthrough from the government, which also has become a hot topic, is the creation of procedure simplification and efficiency in getting business license. Currently, Directorate General of Customs and Excise (DGCE) is working with Directorate General of Taxes (DGT) to form a Single Identity Number (SIN) which is expected to become a nation-wide, permanent, and integrated unique identity.
The collaboration of these two government agencies under the Ministry of Finance will establish the Taxpayer identification number (NPWP) as a single identity in fulfilling the customs duties. The unification of single identity number will be the first step of creating single profile and single risk management between DGCE, DGT, other Ministries and related Agencies.
In other words, SIN is data integration among Ministries and Agencies which is initiated by integrating Customs Identification Number (NIK) and NPWP, with NPWP as SIN which can be used to fulfill customs duties. As for the regulations that administer single identity number is Regulation of Minister of Finance number 179/PMK.04/2016 in Customs Registration and Regulation of Director General of Customs and Excise number PER-04/BC/2017 in Guidelines of Customs Registration.
Single Indentity Number (SIN): Single Indentity For All Business Practice Not Just A Dream
Single Indentity Number (SIN) is one the strategic initiatives, part of Customs and Excise Reform Reinforcement Program, which aims to facilitate customs stakeholders and also as a synergy between DGCE and DGT. In technical stage, SIN is a replacement for Customs Identification Number (NIK) and Companies Arranging Customs Services Identification Number (Nomor Pokok PPJK). Thus, it’s only NPWP for the identification number. This regulation is an effort to simplify the procedure so that customs stakeholders will find ease in order to boost their import-export activities.
Director of Indonesian Customs Technique, Oza Olavia explained that single identity number is required in order to boost investment climate in Indonesia, in which, currently, the investors must have several business licenses and different identification numbers in order to run business.
“In the importance of this reform, a regulation is needed to accommodate several legal basis on identification numbering at different institutions under the Ministry of Finance, especially DGCE and DGT,” said Oza.
It is indeed, as long as a business entity wants to run business in Indonesia, it needs to apply for several business licenses and business entity identity numbers from different government institutions, either at the central or regional level. This condition causes the registration application is submitted separately and many times, whereas often the submitted data is same and repetitive.
The more complex business field, the more it needs applications for licensing. The inefficiency occurs when there is only a few data addition in different agency, meanwhile the data among agencies is not integrated. From customs stakeholders point of view, this inefficiency also occurs on time consumption and more administration fee for applying several licenses or identity numbers.
From those conditions, the government expects that SIN can solve the un integrated identity number problem which will be replaced by NPWP. DGCE, which is currently conducting reform reinforcement program, can also reflect from mentioned condition to improve service and efficiency in order to facilitate customs stakeholders.
Meanwhile, Deputy Director of Customs Registration, Ircham Habib, explained that this time both of DGCE and DGT really need SIN. According to him, without SIN there will be four difficulties which will occur. First, the un integrated taxes and customs system will potentially create infringement. Second, the possibility of business process friction between DGCE and DGT which is not harmonized yet in terms of service, control, and revenue collecting on import, export, and excise. Third, government revenue monitoring is still disintegrated so that the mitigation analyzing is not optimal. Fourth, unmatch government revenue collection can’t be detected as early as possible.
“That’s why the development of SIN is aiming for data integration between DGCE and DGT, so both of the institutions can make a comprehensive assessment. This is needed in order to build single profile of customs stakeholders which is a part of single risk management,” said Habib.
In addition, Habib said that risk management is needed to decide which customs stakeholders need to be prioritized and to be maximally supervised. Another goals in the development of SIN system, which are just as important, are reducing the chance of taxation, and customs and excise duties evasion, boosting the government revenue, raising awareness, and elaborate analyzing on customs revenue. Besides, with the integrated and comprehensive early alert system on government revenue and mitigation on customs revenue management will optimize the revenue collected by DGCE.
With those goals, the system and procedure of SIN will be designed very effectively. According to Habib, there are six stages of creating single identity. First, determining NPWP as the single identity to fulfill customs duties. Second, repealing NIK and PPJK identification number. Third, adding customs registration service portal through Indonesia National Single Window (INSW) portal, and Customs and Excise portal.
Next steps are accelerating the service level agreement time from 5 days to just 1 day, on the following day, after the application of customs registration is received completely, improving customs stakeholders compliance towards taxes regulation, and engaging joint operation on integrated data between DGCE and DGT to be used under each other’s authorities
Single Indentity Number For All Business Practice – Temporaktif Customs