[Edaily Reporter Shin Yeong-bin ] LG CNS (#LG CNS) has been recognized by the Indonesian National Tax Agency for its contributions to the development and stabilization of the next-generation tax administration system. Discussions are also underway regarding a follow-up project to further enhance the system by integrating artificial intelligence (AI) into the local infrastructure.

LG Corp. announced on the 14th that it had received a plaque of appreciation from the Indonesian Directorate General of Taxes in recognition of its contribution to the successful implementation of the “CoreTax” tax administration system and its ongoing technical and operational support.

The presentation ceremony, held on the 11th (local time) at the Indonesian Tax Office in Jakarta, was attended by Kim Hong-geun, Executive Vice President and Head of the Digital Business Division at LG Corp.; Bimo Wijayanto, Commissioner General of the Indonesian Tax Office; and Iwan Djuaniardi, Special Advisor to the Minister of Finance, among others.

CoreTax is the next-generation tax administration system of the Indonesian Directorate General of Taxes, which operates under the Ministry of Finance. It is a national project aimed at digitizing tax administration by integrating previously decentralized processes—ranging from taxpayer registration to filing, payment, refunds, tax audits, and collection—into a single platform.

LG Corp. formed a consortium with the Austrian IT company Qualisoft and completed the system implementation in December 2024. Subsequently, the company supported the DGT in system operation and stabilization through March of this year, and since April—when the DGT began direct operation—it has also been responsible for maintaining core infrastructure, such as the database.

According to Indonesia’s Ministry of Finance and the National Tax Agency, tax revenue in the first half of this year totaled 1,035.7 trillion rupiah (approximately 79.1 trillion won), an increase of about 24.6% compared to the same period last year. The National Tax Agency explained that the rise in tax revenue was supported by the recovery of economic activity, as well as strengthened tax administration and improved taxpayer compliance through CoreTax.

LG Corp. is also in discussions with the Directorate General of Taxes regarding a follow-up project to further enhance CoreTax by integrating AI technology. This initiative aims to improve the efficiency of tax administration and taxpayer services by applying AI-based automation and data analysis capabilities.

LG Corp. has been carrying out e-government projects for major public institutions in Indonesia, including the National Police and the Ministry of Finance, for approximately 20 years. Since last year, it has also been working on a project to build an AI data center infrastructure in Jakarta, valued at approximately 100 billion won.

Bimo Wijayanto, Commissioner General of the Indonesian National Tax Service, stated, “I am deeply grateful for the technical expertise and dedication LG Corp. has demonstrated throughout the CoreTax implementation process,” adding, “I look forward to the continued partnership between the National Tax Service and LG Corp.”

Kim Hong-geun, Executive Vice President and Head of the Digital Business Division at LG Corp., said, “Based on our accumulated digital transformation capabilities and AI technology, we will continue our collaboration to contribute to Indonesia’s digital government innovation.”