The history of human civilization is a captivating journey, marked by continuous evolution from the pre-literate era to the 21st century. Numerous groundbreaking discoveries have reshaped our mindset and way of life throughout this progression.
Around the 1700s, a pivotal moment emerged when human ingenuity sparked a transformation that eclipsed all prior advancements. This era, known as the First Industrial Revolution, originated in Britain, primarily fueled by the invention of the steam engine. Developed by James Watt during this period, the steam engine’s impact reverberates through our lives even today.
This invention initiated widespread changes across various sectors, including agriculture, manufacturing, mining, transportation, and technology, profoundly influencing the global economic, social, and cultural landscape. The ripple effect of the Industrial Revolution was such that each affected area, in turn, influenced others, creating a domino effect. Conversely, those unprepared for this revolutionary wave risked being overwhelmed and losing competitiveness.
The First Industrial Revolution spanned a century, paving the way for the Second, Third, and Fourth Industrial Revolutions. Notably, the interval between the third and fourth revolutions halved, signifying an accelerating pace of change. This rapid progression suggests future transformations will occur even more swiftly, challenging our ability to adapt to truly novel technological advancements. The critical question is: are we ready for these challenges?
To address this question, it’s crucial to consider the perspective of Professor Klaus Schwab, a German economist and founder of the World Economic Forum (WEF). He posits that the current industrial revolution differs fundamentally from its predecessors. Industry 4.0, according to Schwab, blurs the lines between the digital and physical worlds. Essentially, machines (powered by artificial intelligence, robots, platforms, etc.) are increasingly poised to replace human roles. While this shift promises benefits like rapid information dissemination, ease of access, and enhanced productivity, it also presents potential downsides.
From the Steam Engine to Djp Online
To ensure Indonesia navigates the complexities of Industry 4.0 successfully, the government has initiated reforms across various sectors, including finance. Traditional financial processes, such as queuing at banks for manual transactions handled by tellers, are becoming obsolete. Mobile Banking exemplifies this shift, placing banking services directly into the hands of users.
Similarly, the Directorate General of Taxes (DJP) in Indonesia recognized the obsolescence of conventional methods and embraced technological advancements to streamline services. This led to the creation of DJP Online, an application designed to simplify tax obligations for taxpayers. DJP Online empowers taxpayers to easily file tax returns (SPT) and make tax payments online, eliminating the need for physical visits to tax offices and cumbersome paperwork. All that is required is an internet connection and a digital device. These advancements are direct outcomes of the Industrial Revolution, which in turn, traces its roots back to the invention of the steam engine.
The domino effect and impact of the Industrial Revolution are set to continue shaping the future. While DJP Online currently addresses the need for convenience, it could, in the future, be recognized as a catalyst, much like the steam engine, for even more effective and efficient technologies in fulfilling taxpayer needs.
This potential is already manifesting. The ongoing Tax Reform in Indonesia includes a substantial allocation of IDR 3.1 trillion for modernizing the DJP’s technology and information systems. Key initiatives include developing a Core Tax System, establishing a comprehensive database, and implementing an e-Taxpayer Account (e-TPA) platform. Intriguingly, similar platforms in other countries enable taxpayers to manage their obligations without direct interaction with tax officials. This results in time efficiency and increased taxpayer trust, ultimately boosting revenue collection. These advancements are all interconnected, stemming from the initial trigger of the Industrial Revolution 4.0.
The Indonesian government’s Tax Reform can be seen as a response to the challenges of Industry 4.0. While questions remain about its immediate relevance to all segments of Indonesian society, particularly those less familiar with technology, change is inevitable. Those who resist adaptation risk being left behind. Therefore, both tax authorities and the public should fully support this transformation. Regardless of the challenges, our collective optimism will significantly influence the progress and success of this change, ensuring that Industry 4.0 becomes a catalyst for a new era of advanced Indonesia.
(*) This article represents the personal views of the author and does not reflect the official stance of the author’s affiliated institution.
