Data From Indonesian Directorate General Of Taxes Accounting Essay

As a underdeveloped state, Indonesia requires sufficient national gross to back up its development procedure. As the natural resources such as rough oil, Cu, Sn, gold, Ag, and other non renewable resources bit by bit diminutions in production, the trust on other beginnings of income becomes higher. One prospective beginning that reflects the liberty of a state in financing its development procedure would be revenue enhancement income. Datas from Indonesian Directorate General of Taxes ( DGT ) from 2001 until 2009 has shown that the part of gross generated from revenue enhancement to domestic income has reached more than 65 % ( Kinerja Penerimaan Pajak, 2010 ) . It indicates that in the hereafter, the state would see revenue enhancement income as its primary gross beginning.

In order to bring forth optimum revenue enhancement gross, the demand to hold a dependable, efficient and professional revenue enhancement disposal is a must. Previously, the revenue enhancement establishment was regarded as a ruddy tape and stiff administrative official due to its coercive power to roll up revenue enhancement. To back up the air current of reformation procedure, DGT has launched the modernisation plan with three chief aims: to hold high taxpayer conformity, high public trust in revenue enhancement organisation, and high productiveness of revenue enhancement officers ( Rizal, 2010 ) . Compare to other authorities establishment, DGT has been given the privilege in footings of budget and flexibleness in human resource patterns to continuously better its public presentation. Given the duty of roll uping big sum of revenue enhancement money, non merely the substructure such as information and engineering has been modernized but besides reformation in footings of strategic human resource direction has been implemented to back up the attainment of organisation aims.

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Specifically, the inaugural intends to better the productiveness and unity of revenue enhancement officers by rendering the DGT with greater flexiblenesss to pull off its human resource ( HR ) direction policies. As a authorities establishment, human resource pattern in the DGT should follow with standard civil service system which has long been perceived as uneffective in actuating its employee and set uping answerability for the work consequence. For this principle, flexibleness to implement strategic human resource direction based on organisation demands is an of import factor for transforming DGT into a high public presentation gross aggregation bureau and so DGT was chosen as a pilot undertaking for overhauling the whole state human resource direction system ( Rizal, 2010 ) .

Based on the authorization given the authorities, several actions and plans has been established which are the realization of human resource direction pattern, begins with the staff choice procedure, puting up new compensation system, equal preparation in revenue enhancement direction for revenue enhancement officers, set uping new occupation categorization system based on competences and work load, and eventually preparation of a comprehensive system for public presentation rating.

Among many systems in Directorate General of Taxes, revenue enhancement audit is the most outstanding tools for guaranting taxpayers conformity on the revenue enhancement ordinances. Centre for Tax Policy and Administration ( 2006 ) defined that “ revenue enhancement audit is series of scrutiny to find whether a taxpayer has right assessed and reported their revenue enhancement liability and carry through their several duties ” . Audit public presentation will be assessed by the measure of audit accomplished and quality of audit consequence. The demand of holding qualified and dependable revenue enhancement audit are acquiring higher and higher due to the increasing figure of revenue enhancement gross targeted from the audit procedure and the consciousness of presenting better services to the citizens. From the position of human resource direction, revenue enhancement audit section have conducted several actions which objectives is to better the motive of revenue enhancement hearer and later increase the organisation public presentation as a whole. Those actions are:

Incentives betterment and better rating measuring for the revenue enhancement hearer

Supplying preparation and instruction for the revenue enhancement hearer in footings of concern procedure and audit package

Overhauling and heightening information and engineering required for audit process and besides associating on-line databases with the independent party that provide concern informations

From the disposal of revenue enhancement Torahs point of position, revenue enhancement audit has been regarded as an of import map. In the procedure of observing and discouraging disobedience taxpayers, revenue enhancement hearers frequently required to construe complex ordinances, carry out intensive scrutinies of taxpayers ‘ books and fiscal records, and at through intensive interaction with the society, they should act and move every bit representation as the revenue enhancement organisation as a whole ( Centre for Tax Policy and Administration, 2006 ) .

Sing that the map of revenue enhancement audit section as a jurisprudence implementing entity and the procedure which is strict and requires extremely professional and gifted people, revenue enhancement hearer were given better compensation comparison to other place in the Directorate General of Taxes.

From the authorities position, such compensation is regarded as a wages for the employee in exchange for their public presentation or existent work part which besides has connexion with professionalism and occupation satisfaction. Compensation or wages in this context are intrinsic which reflects employee ‘s psychological head sets that result from executing their occupations and extrinsic which includes both pecuniary and nonmonetary wagess ( Martocchio, 2009 ) .

Greene et Al in 1985 stated that employee express satisfaction in relation to the wagess they receive ; those whose wagess are tantamount on their public presentation will be motivated to present their best public presentation. They expect their compensation is just and just that it provides them with touchable reward proportional with their accomplishment and ability. Burdening proper proportion among extrinsic and intrinsic compensation would be a ambitious portion for human resource director since populace sector has some features that differs from private sector. Incentive systems should decently run into the demand of each organisation alternatively of benchmarking from specific organisation. Chenhall noted that what might be effectual and efficient in one organisational context, might be uneffective or even counterproductive when implemented in a different organisational context ( as cited in Weibel et al. , 2009 ) .

Scholars such as Perry, Wise, Buelens, and Van den Broeck stated that in the developed states perspective, there is an sentiment about people who work for public organisation were non endeavoring for a good income, alternatively they are interested in the occupation itself which is considered interesting ( as cited in Weibel et Al, 2009 ) . Consequently, based on surveies by Rainey and Francois, public sector demands to hold a different compensation system compare to private sector by seting more emphasize on non pecuniary wagess such as good working environment, interesting, and disputing undertakings in order to keep or even bettering the degree of employee motive ( as cited in Weibel et al. , 2009 ) .

Compare to developed states context, what makes it different with Indonesia or any other developing states might be the degree of prosperity that the authorities employees have. Asiatic states particularly Indonesia still has to fight with world that public servant compensation was non equal plenty even to back up their basic demands. Maslow ( 1943 ) contended that one time a individual has been satisfied by a specific demand and travel toward higher demand, lower demand would n’t be his precedence once more. It is extremely likely that developed states authorities employees has satisfied with their basic demands so that they would endeavor to higher demands which is intrinsic demand, while the Indonesian authorities employee still have to carry through shelter demands, instructions demands, and others so that they put more emphasize on extrinsic demands alternatively of intrinsic demands.

II. Problem Definition

Sing the above accounts, this research fundamentally wants to mensurate two things, the first is that whether there is relationship between compensation and occupation satisfaction in the context of Indonesian authorities employee peculiarly Tax Auditor in Directorate General of Taxes. Second, to find which peculiar elements of compensation whether intrinsic or extrinsic are perceived to hold important factor on employee occupation satisfaction.

III. Research Objective

The demand to find whether any impact of compensation on occupation satisfaction in the range of revenue enhancement hearer is of import since Indonesian Directorate General of Taxes was regarded as a function theoretical account for reformation procedure in the range of Indonesian authorities. Weighing proper and equal wages composing to be rendered to the employees is critical if the wages system is intended to work efficaciously ( Byars & A ; Rue, 2006 ) . The fact that the revenue enhancement organisation has spent on mean 37 % budget on forces outgo within 3 back-to-back old ages or equivalent with US $ 134.73 million, has given the signal that compensation scheme is important to the attainment of Directorate General of Taxes aims ( Directorate General of Taxes, 2011-2012 ) . The alone map of revenue enhancement hearer in footings of jurisprudence implementing entity and service bringing were the best respondents in this research since it represents the bulk map of authorities which is policy implementer and service grantor.

In add-on, distinguishing which factors have significantly act upon the occupation satisfaction would farther be a good input for the authorities to plan proper construction for employee compensation system. Dynamic procedure within the DGT in footings of strategic human resource execution would be valuable beginnings for the authorities to find whether to implement the new compensation system through out the whole establishments or non. The resources in footings of fund to finance the human resource reformation procedure dealt with considerable sum of national gross. The reformation procedure should be decently managed as the signifier of answerability to the citizens.


This thesis is divided into five chapters. The first chapter explains background and aim of the research to Indonesian Directorate General of Taxes as targeted organisation ; the 2nd chapter describes constructs of employee satisfaction and compensation in footings of extrinsic and intrinsic wages, hypothesis determined for research, and besides theoretical model utilized in the survey ; the 3rd chapter elucidates methodology applied in the survey which covers population, trying, and measuring of the research ; the 4th chapter presents the consequences achieved and measure the hypotheses, peculiarly it discuss relationship between compensation and occupation Satisfaction and factors that influence occupation satisfaction ; and in conclusion the 5th chapter defines decision, derive some deductions for the targeted organisation and sketch some restrictions of the research.


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