LG CNS has received an appreciation award from Indonesia’s Directorate General of Taxes in recognition of its contributions to building the country’s next-generation tax administration system. Building on this achievement, the South Korean IT services company plans to expand its presence in Indonesia’s digital transformation market through AI-enhanced tax administration upgrades and AI data center construction.
LG CNS announced on the 14th that the award ceremony was held on the 11th (local time) at the Directorate General of Taxes headquarters in Jakarta. Attendees included Kim Hong-geun, executive vice president and head of LG CNS’s Digital Business Division; Bimo Wijayanto, Director General of Taxes at Indonesia’s Directorate General of Taxes; and Iwan Djuniardi, Special Advisor to the Minister of Finance.
The system behind the award is “Coretax,” a national priority project spearheaded by Indonesia’s Directorate General of Taxes under the Ministry of Finance. It consolidates previously fragmented tax functions—including taxpayer registration, filing, payment, refunds, tax audits, and collection—into a single unified platform. The Indonesian government is leveraging Coretax to drive tax administration efficiency, improve taxpayer convenience, and establish a data-driven tax governance framework.
LG CNS formed a consortium with Qualysoft GmbH, an Austrian IT company, and completed the system build-out in December 2024. The company then supported system operations and stabilization through March of this year, and since April—when the Directorate General of Taxes assumed direct operational control—LG CNS has been responsible for maintaining core infrastructure, including databases.
Coretax is delivering tangible results alongside operational stabilization. According to Indonesia’s Ministry of Finance and Directorate General of Taxes, tax revenue in the first half of this year reached 1,035.7 trillion rupiah (approximately 79.1 trillion won), up 24.6% from the same period last year. Growth was observed across major tax categories, including corporate income tax, personal income tax, and value-added tax. Indonesia’s Directorate General of Taxes attributed the revenue increase to economic recovery, strengthened tax administration through Coretax, and improved taxpayer compliance.
The two sides are also discussing an enhancement project to apply AI to Coretax. The initiative aims to boost tax administration efficiency and improve taxpayer services by leveraging AI-powered workflow automation and data analytics capabilities.
LG CNS is using this project as a springboard to expand its business in Indonesia’s digital government and AI infrastructure markets. Over the past two decades, the company has executed e-government projects for major Indonesian public institutions, including the National Police and the Ministry of Finance. Since last year, it has also been working on a 100 billion won (approximately $74.4 million) AI data center infrastructure project in Jakarta. The company’s strategy is to combine its e-government system implementation experience with AI technology and infrastructure capabilities to broaden its local digital transformation business portfolio.
Director General Wijayanto said, “We deeply appreciate the technical expertise and dedication LG CNS demonstrated throughout the Coretax build-out process. We look forward to the continued partnership between the Directorate General of Taxes and LG CNS, grounded in mutual respect and professionalism.”
Executive Vice President Kim Hong-geun said, “This award recognizes not only the Coretax implementation but also our close collaboration with the Directorate General of Taxes to ensure stable operations. We will continue to work together to contribute to Indonesia’s digital government innovation, drawing on our accumulated digital transformation capabilities and AI technologies.”