The World Bank’s Governance Global Practice seeks a senior tax expert to lead the work on subnational government (SNG) tax reform in Indonesia for the next three years on a nearly full-time basis. The STC will work on issues related to SNG revenue mobilization and decentralization, including the following tasks:
- Advise the Government of Indonesia (GOI) on SNG revenue policy and administration, especially to the Directorate General of Fiscal Balance (DGFB) at the Ministry of Finance (MOF) and the Directorate for Regional Revenue (KEUDA) at the Ministry of Home Affairs (MOHA).
- Supervise and guide the WB team’s technical assistance (TA) to 4-5 districts in Indonesia on strengthening their revenue administration. This support will focus on shaping the WB’s engagement strategies in these districts and will include conducting a baseline diagnostic and providing TA to districts based on the results of the diagnostic.
The assignment will comprise of the following tasks and deliverables. Please note that candidates who have expertise in either tasks 1 or 2, along with the other tasks, will be eligible for the role.
1. Policy advice on SNG revenue policy (Law 28/2009 and Law 33/2004):
- Advise DGFB on SNG tax policy reform options, including PIT piggybacking, P3 decentralization and tax consolidation. Tasks will comprise conducting analysis and running simulations on various policy options; compiling lessons learnt from international precedents; presentations and policy notes to communicate WB’s technical advice and closely engaging / coordinating with counterparts in DGFB to understand their concerns. Work on policy reform will include policy options on personal income tax piggybacking; decentralization of property tax on estate mining and forestry; consolidation of hotel, restaurant and entertainment taxes into a combined tax.
- Advise DGFB on a realistic approach to revising the “fiscal capacity” measure in the DAU formula, in view of better incentivizing SNG OSR collection, in the context of the revision of Law 33/2004. This would include taking onboard the existing work done by the WB team on fiscal capacity estimation, working on improving the estimation, closely collaborating with counterparts in DGFB to take their feedback and to understand the proposed potential revenue estimation method in the implementing regulations.
2. Supervise and guide the WB team’s technical assistance to 4-5 districts in Indonesia on strengthening their revenue administration.
As part of the engagement on SNG tax reform, the WB is planning to conduct baseline tax administration diagnostics in 4-5 districts in Indonesia, building on established diagnostic frameworks such as the WB’s Tax Diamond tool and the Property Tax Diagnostic Manual. Based on the results of the diagnostic exercise, the WB will provide technical assistance to these districts in order to improve SNG tax collections. The work will include the following:
- Conduct the diagnostic exercise in the selected districts. This will involve closely working with MOHA, MOF and selected districts to ensure that the diagnostic is conducted in a timely and effective manner.
- Provide technical assistance to the selected districts. The STC will lead the technical assistance to the selected districts based on the findings of the abovementioned diagnostic. The WB is planning to have consultants based out of the respective districts to provide hands-on support and advice to SNG tax administrations with the overall objective of improving SNG tax compliance. The STC will have to closely work with counterparts in district governments, MOF and MOHA to (i) understand the key constraints in tax administration based on a combination of the diagnostic exercise and information from counterparts, (ii) develop technical advice for the districts that is technically grounded and administrative feasible in the context of the respective district and (iii) effectively communicate the technical advice and train to the district governments in the local language. The work will involve incorporating the feedback of key counterparts throughout the process and having a close working relationship with district governments to understand key constraints.
3. Coordinating with the Ministry of Home Affairs (MOHA), Ministry of Finance (MOF) and governments of selected districts.
4. The consultant would be expected to have a close working relationship with all three in order to conduct these activities.
5. Coauthor a chapter on Subnational Revenues for the Decentralization Policy Review
6. Provide any other appropriate support on SNG tax work in Indonesia, based on client demand.
To qualify for this assignment, the consultant should have:
- A PhD or Master’s degree in economics, law, public administration, public policy or equivalent.
- A minimum of five years of proven experience in the area of finance and taxation in Indonesia. Experience of working on SNG taxation is desirable. Applicants with substantially more experience are welcome to apply.
- Solid knowledge of Indonesian SNG tax laws, regulations, policy and systems.
- Familiarity with worldwide good practices in SNG taxation is desirable.
- Proven analytical skills and ability to solve problems.
- Ability to anticipate, coordinate and prioritize activities.
- Previous experience of working with MOF and/or MOHA on SNG taxation, and an existing network with counterparts is desirable
- Professional and interpersonal skills to foster relationship and collaboration and ability to work effectively in a multicultural team environment.
- Language skills – both written and spoken – in Bahasa Indonesia and English is required.
The contract will initially be for 150 days for FY22 (until June 2022) and will be renewed for the subsequent FYs. As mentioned earlier, the total commitment will be for a period of three years. The salary will be commensurate with World Bank standards and be based on the qualifications and the experience of the candidate. All payments and reimbursements will be based on submitted deliverables of the consultant.
Interested applicants should submit their application to Jurgen Blum, Senior Public Sector Specialist, (email@example.com), Carissa Hanjani (firstname.lastname@example.org), and Alfi Ulinnuha (email@example.com) with subject title “STC – SN Tax Specialist_[Your Name]” the latest by April 26, 2021 Jakarta time. The application should include (i) a motivation letter, (ii) CV, (iii) academic transcripts and (iv) a sole-authored (if possible quantitative) writing sample. Please merge document (i), (ii), and (iii) to a single PDF file. Shortlisted candidates will be invited for a phone interview and be given a written assignment.