Integration and amalgamation

Broadening the Base: Improving Tax Administration in Indonesia, 2006-2016

Author
Leon Schreiber
Focus Area(s)
Country of Reform
Abstract

In the mid 2000s, Indonesia’s Directorate General of Taxes (DGT) was still struggling to recover from the shock of the Asian financial crisis of the previous decade. Tax revenue had plummeted during the crisis, and the collection rate remained well below accepted standards, as well as below the standards of many peers in the region. In 2006, the directorate’s new leaders launched a nationwide overhaul, drawing lessons from a successful pilot program that had reorganized the DGT’s biggest offices and enabled large taxpayers to settle all of their tax-related affairs with a single visit to one office rather than having to go through multiple steps. Expanding that pilot to more than 300 locations across a 3,000-mile archipelago presented no small challenge. The implementers built a digital database that linked all offices to a central server in the capital of Jakarta, developed competency testing and training that bolstered the quality of staff, and created new positions to improve relationships with taxpayers. Other measures aimed to reduce corruption and tax fraud. When political and practical crosswinds frustrated the DGT’s efforts to build the workforce its leaders thought it needed, the agency turned to big-data analytics to improve compliance and broaden the tax base. By 2018, domestic revenue mobilization had plateaued, but the changes introduced had produced important improvements. The question was then what to do to broaden the base further without decreasing incentives for investment or raising administrative costs to unsustainable levels.

Leon Schreiber drafted this case study based on interviews conducted in Jakarta in January and February 2018. Case published April 2018.

To view a short version of the case, please click here

 

Martin Schönteich

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Focus Area(s)
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23
Country of Reform
Interviewers
Arthur Boutellis
Name
Martin Schönteich
Interviewee's Position
Senior Legal Officer
Interviewee's Organization
Open Society Justice Initiative, Open Society Institute
Language
English
Nationality of Interviewee
South African
Town/City
New York, NY
Country
Date of Interview
Reform Profile
No
Abstract

Martin Schönteich, a senior legal officer with the Open Society Justice Initiative, discusses police reform in post-apartheid South Africa. He discusses some of the challenges of the integration and amalgamation of new and old police forces, including in ensuring that the recruitment process was perceived as fair, integrating new forces despite limited retirement of older forces, and the challenges that literacy and resource constraints posed to effectively recruiting and training new forces. He goes on to discuss how South Africa addressed a number of challenges in building its new police agency. Some strategies employed included: increasing pay to attract more and better recruits, implementing new information management systems, and bringing in private consulting agencies to develop internal management structures. Schönteich proceeds to discuss the possibility of greater collaboration between the police and private non-state security actors. He concludes by noting that in countries in transition, developing “sound and effective” institutions takes time. Countries may face an initial increase in crime until institutional reforms are effectively implemented.  

Profile

Martin Schönteich began his professional career in 1994 working as a public prosecutor in Durban, South Africa.  At that time he also volunteered to become a police reservist. In addition to working as a public prosecutor, he has worked in the Crime and Justice Policy Unit of the Institute for Security Studies (ISS), a South Africa-based nongovernmental organization that looks at issues of human security in Africa. Before joining the ISS, Schönteich was a public prosecutor with South Africa’s Department of Justice. At the time of this interview, he was a senior legal officer with the Open Society Justice Initiative, an operational program of the Open Society Institute. 

Full Audio File Size
104 MB
Full Audio Title
Martin Schonteich - Full Interview

Clearing the Jungle Raj: Bihar State, India, 2005-2009

Author
Rohan Mukherjee
Focus Area(s)
Country of Reform
Abstract

Nitish Kumar was elected chief minister of Bihar, India’s poorest state, in December 2005, when the state’s government was weighed down by two decades of institutional decline, widespread lawlessness and a society deeply divided by caste and religion. Improving law and order was a major priority of his new government. The main challenges were rampant criminal activity that curtailed social and economic life, a short-staffed and under-motivated police force, widespread corruption in the ranks, and the poor image of the Bihar police. Using innovative measures, Kumar and his top police officers set out to rid Bihar of its so-called jungle raj, or law of the jungle.

Rohan Mukherjee drafted this policy note on the basis of interviews conducted in Patna, Bihar, in July 2009.  Two separate memos, “Coalition Building in a Divided Society” and “Reviving the Administration,” describe Kumar’s efforts to build a coalition for reform and improve administration, respectively.
 
Associated Interview:  Abhayanand
 

 

Rajiv Bora

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A
Focus Area(s)
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1
Country of Reform
Interviewers
Rohan Mukherjee
Name
Rajiv Bora
Interviewee's Position
Commissioner and Secretary
Interviewee's Organization
Home and Political departments, Assam state, India
Language
English
Nationality of Interviewee
Indian
Town/City
Guwahati
Country
Date of Interview
Reform Profile
No
Abstract

Rajiv Bora discusses some of the major issues and challenges the Assam government faced in terms of law and order, counterinsurgency, and illegal immigration. The Indian state has confronted demographic pressures stemming from the migration of people from what is now Bangladesh. The state has also witnessed several insurgencies, including the United Front for the Liberation of Asom and the Bodo minority. Bora describes his role in monitoring and implementing ceasefire agreements with these groups. He talks about government decentralization efforts as well as steps to secure the India-Bangladesh border. These efforts included constructing a border fence, increasing the number of border outposts, establishing tribunals for foreigners, and creating a national registry of citizens. Bora also outlines the objectives and outcomes of the recently implemented Police Act and the institutional steps taken to reduce police excesses. He describes several tribal and communal conflicts and how the government responded. He also highlights the debate about the effectiveness of offering rehabilitation packages for extremists who have surrendered.

Case Study: Promoting Peace Through Development: Assam State, India, 2001-2009

Profile

At the time of this interview, Rajiv Bora was commissioner and secretary of the Home and Political departments for the government of Assam in India. From 1998 to 2003, he served as commissioner and secretary of finance, a position in which he dealt with state finances and managed fiscal reforms.

Full Audio File Size
50 MB
Full Audio Title
Rajiv Bora - Full Interview

Johan Burger

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Focus Area(s)
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15
Country of Reform
Interviewers
Daniel Scher
Name
Johan Burger
Interviewee's Position
Senior Lecturer, Crime and Justice Programme
Interviewee's Organization
Institute for Security Studies
Language
English
Nationality of Interviewee
South African
Town/City
Pretoria
Country
Date of Interview
Reform Profile
No
Abstract

Johan Burger talks about crime and policing in South Africa. To fight crime, he contends that the focus should be on its root causes, including, socioeconomic conditions, and the criminal justice system. He advocates the adoption of an integrated strategy that involves governmental and non-governmental departments to address these conditions and political factors. Burger discusses the National Crime Prevention Strategy that was adopted in 1996. The strategy failed due to lack of a shared understanding of crime and policing among politicians, lack of funding, a disregard for socioeconomic conditions, and the inability of police to deliver immediate and visible results on crime prevention. He also describes the various operations under the Community Safety Plan and the National Crime Combating Strategy, which focused on serious and violent crimes, organized crime, crimes against women and children, and improving service delivery. Burger recounts his experience working on the change-management team, which dealt with reforming the police. He talks about police demilitarization and rank restructuring. He describes the confusion and the decline in police morale and discipline that emerged as a result. Burger also challenges community policing. While he acknowledges instances of success, he argues that it is idealistic in terms of its expectations on how the police, in partnership with communities, can fight crime. He identifies sector policing as being more practical and tangible. Though it is still a joint effort between the police and the community, the police resolve only what they can and refer what they are unable to deal with to other government institutions.    

Profile

At the time of this interview, Johan Burger was a senior lecturer in the Crime and Justice Programme at the Institute for Security Studies in Pretoria.  Before that, he was a lecturer at the Tshwane University of Technology in the department of Safety and Security Management. Burger joined the police service in 1968 and retired in 2004 as an assistant commissioner.  Within the police force, he worked as a station commissioner and investigating officer. He was involved in policy and strategy development. Burger became a member of the change-management team that was created in 1993 as South Africa moved toward a new democracy. He later headed Strategy and Policy Development for the South African police service. 

Full Audio File Size
93 MB
Full Audio Title
Johan Burger - Full Interview

Carlos Humberto Vargas García

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M
Focus Area(s)
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3
Country of Reform
Interviewers
Flor Hunt
Name
Carlos Humberto Vargas García
Interviewee's Position
Chief of Studies
Interviewee's Organization
National Academy of Public Security, El Salvador
Language
Spanish
Nationality of Interviewee
El Salvadoran
Place (Building/Street)
National Academy of Public Security
Country
Date of Interview
Reform Profile
No
Abstract
Carlos Humberto Vargas García describes the challenges of establishing a police academy in El Salvador after the Peace Accords of 1992.  He begins by explaining the recruitment and training process, the academic-degree requirements for candidates, and the quota system.  Challenges that he faced in training the police force include lack of resources, internal administrative issues and lingering resentment between the former warring factions.  He describes the usefulness of his training with ICITAP (the International Criminal Investigative Training Assistance Program), the role of donor countries, the training curriculum, community policing and the importance of having an integrated police. He contends that while it is important to receive aid and training from multiple countries,  international donors should not impose preconditions, as they are not familiar with the local reality. 
Profile

At the time of this interview, Carlos Humberto Vargas García was the chief of studies at the National Academy of Public Security in El Salvador, an institution separate from the national police. From 1992 to 1995, he was the first sub-director of the academy, and he trained in the U.S. and Central America with ICITAP, the International Criminal Investigative Training Assistance Program. He also worked in the private sector, in other universities in El Salvador as a professor of engineering, and for the Instituto Salvadoreño de Formación Profesional, which is in charge of non-formal education.

Full Audio File Size
84.5MB
Full Audio Title
Vargas Garcia Interview

José Hugo Granadino Mejía

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M
Focus Area(s)
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7
Country of Reform
Interviewers
Flor Hunt
Name
José Hugo Granadino Mejía
Interviewee's Position
Chief, Professional Training Unit
Interviewee's Organization
National Police of El Salvador
Language
Spanish
Nationality of Interviewee
El Salvadoran
Country
Date of Interview
Reform Profile
No
Abstract
José Hugo Granadino Mejía begins by describing the process of integrating various factions into the police, and he recounts fears (that never materialized) that members of formerly opposing sides would kill each other. He gives details about the curriculum used during police training at the academy, about the entry quota system and about the academic degree requirements for new recruits. He describes in detail the promotion system within the police force and the way in which the police incorporated new ideas and procedures. Relations with donor countries are also discussed, and he gives great importance to the financial and technical support that the police force received from the international community.
Profile

At the time of this interview, José Hugo Granadino Mejía was chief of the professional training unit of the National Police of El Salvador. A lawyer and notary, he in 1993 became one of the first professors at the National Academy of Public Security (Academia Nacional de Seguridad Pública), an institution separate from the National Police. He also served as director of study and later as director general of the academy, and he worked as a professor of law at the Universidad de El Salvador for 25 years and at the Universidad Tecnológica de El Salvador.

Full Audio File Size
117MB
Full Audio Title
Jose Granadino Mejía Interview (Spanish)

Iver Frigaard

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L
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4
Country of Reform
Interviewers
Arthur Boutellis
Name
Iver Frigaard
Interviewee's Position
Acting Commissioner
Interviewee's Organization
United Nations Interim Administration Mission in Kosovo
Language
English
Nationality of Interviewee
Norwegian
Town/City
Pristina, Republic of Kosovo
Date of Interview
Reform Profile
No
Abstract

Iver Frigaard describes how criminal networks developed in Kosovo in the absence of effective law enforcement activity. He discusses his reasons for objecting to the decision to drop the word Service from the official name of the Kosovo Police Service. He describes the police force as functional and says police had earned the respect of the population despite being deficient in certain skills. He discusses the problems of low salaries, corruption, political influence, the process of recruitment and vetting, and the transfer of power and responsibilities from the United Nations Interim Administration Mission in Kosovo to the Kosovo Police. He extensively describes the issues of politicization and ethnic differences that affected the police force in Kosovo.

Case Study: Building the Police Service in a Security Vacuum: International Efforts in Kosovo, 1999-2011

Profile

At the time of this interview, Iver Frigaard was the acting police commissioner for the United Nations Interim Administration Mission in Kosovo, a post to which he was appointed in May 2008 by the U.N.'s Department of Peacekeeping Operations. Educated as a lawyer and with a military background, he became a public prosecutor with the police in Norway. After 11 years in the security services, he spent another 11 years with Interpol in France before joining UNMIK in Kosovo in 2007 as deputy commissioner for crime.

Full Audio File Size
72MB
Full Audio Title
Iver Frigaard Interview

Faton Hamiti

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Focus Area(s)
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6
Country of Reform
Interviewers
Arthur Boutellis
Name
Faton Hamiti
Interviewee's Position
Administrative Assistant, Office of the Police Commissioner
Interviewee's Organization
United Nations Interim Administration Mission in Kosovo
Language
English
Place (Building/Street)
Kosovo Police Headquarters
Town/City
Pristina, Republic of Kosovo
Date of Interview
Reform Profile
No
Abstract

Faton Hamiti describes how the police station in Kosovo where he worked as a language assistant moved from being predominantly staffed by U.N. Police officers to having mostly Kosovo Police Service officers. He explains that the first members of UNPOL to arrive in 1999 were well accepted, but they later encountered difficulties due to political issues, lack of cooperation from the population and differences in police techniques among the international officers that were training the KPS. He explains in detail the complex process of transferring power and responsibility from the UNPOL to the KPS, and how the complicated status of Kosovo reflected on policing. He also gives many accounts of his experience while patrolling with the police.

Case Study: Building the Police Service in a Security Vacuum: International Efforts in Kosovo, 1999-2011

Profile

At the time of this interview, Faton Hamiti was the administrative assistant in the Office of the Police Commissioner of the United Nations Interim Administration Mission in Kosovo. He initially worked as a journalist in a daily newspaper in Kosovo before the war and then became a language assistant with UNMIK, first with a U.N. Police patrol and later at the police-station level. In 2006 he started working with the deputy police commissioner for operations, and in 2008 he was assigned as personnel/administrative assistant to the police commissioner.

Full Audio File Size
62MB
Full Audio Title
Faton Hamiti Interview

Reshat Maliqi

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12
Country of Reform
Interviewers
Arthur Boutellis
Name
Reshat Maliqi
Interviewee's Position
Assistant Commissioner for Operations
Interviewee's Organization
Kosovo Police
Language
English
Place (Building/Street)
Kosovo Police Headquarters
Town/City
Pristina, Kosovo
Date of Interview
Reform Profile
No
Abstract

General Reshat Maliqi discusses the main challenges faced by the police in Kosovo, including a boycott by Serbian officers due to the political situation. He gives details about the process of transition between the United Nations forces and the Kosovo Police, and the recruitment and promotion process. In his opinion, the Department for Community Affairs and the Community Policing Unit represented success stories in Kosovo. As the main priorities, he cites boosting investigative capacity through training, better equipping and training specialized units, and joining regional and international police organizations such as Europol and Interpol. He also believes that the Kosovo Police should take more responsibilities and rely less on the international community.

Case Study: Building the Police Service in a Security Vacuum: International Efforts in Kosovo, 1999-2011

Profile

At the time of this interview, General Reshat Maliqi was the assistant commissioner for operations in the Kosovo Police, a post he had held since April 2006. He studied at the Vushtrri Police Academy between 1975 and 1979, after which he worked for the Yugoslav police, including as a security officer at the consulate in San Francisco. In 1994 he was arrested by Serbia for “parallel policing” for Kosovo and was imprisoned for six years. In 2000 he started training with the Kosovo police service and worked for the United Nations mission in Kosovo. In 2003 he was appointed regional commander for Gelani. He was then appointed as head of the border police in Pristina.

Full Audio File Size
82MB
Full Audio Title
General Reshat Maliqi Interview