The World Bank on Friday approved a US$110-million loan to help Indonesia boost its income from revenues through an overhaul of the tax administration system.

The Project for Indonesian Tax Administration Reform (PINTAR) is aimed at improving the performance of Indonesia's revenue system, by increasing efficiency and effectiveness at the Directorate General of Tax to stimulate greater tax compliance, as well as strengthening transparency and accountability in tax administration.

"Through PINTAR, the World Bank sets out to compliment this effort by helping the Indonesian Government expand tax bases, both in terms of increasing the number of tax payers and transactions coming into the tax system, which would in turn help generate more non-oil and gas tax revenue," said World Bank Country Director for Indonesia, Joachim von Amsberg, in a statement.

PINTAR supports fundamental reforms in both operational and support functions of the tax administration office, according to the World Bank.

"Through strengthened staff capacity, integrity standards and a more service-oriented approach, PINTAR will enable better taxpayer services that reduce compliance costs for the private sector," said senior public sector specialist and project team leader, Jens Kromann Kristensen.

(Xinhua News Agency January 17, 2009)