Indonesian Tax Authority Direktorat Jenderal Pajak Speeds Online Transaction Processing With Hitachi’s Data Management Solutions

Challenge: DJP needed a reliable system with no downtime (which would be detrimental to smooth operations) and to analyse and match billions of data sets.

Solution: Pentaho together with Hitachi’s Virtual Storage Platform G1000, an enterprise data storage platform backed by Hitachi’s 100% data availability guarantee.

Outcomes

  • Double to triple speed for online transaction processing (OLTP).
  • Faster navigation of unstructured data resulting in savings on cost and manpower.
  • Greater insights and ease of data management via Pentaho.
  • New insights with traceable integration of data with other data sources.

The Challenge

Direktorat Jenderal Pajak (DJP), or the Directorate General of Taxation, is the official tax authority of Indonesia. The agency has over 45,000 employees working in a country of over 250 million people. DJP began its digital transformation with Hitachi 17 years ago and is one of Hitachi’s longest-term customers.

DJP began its digital transformation journey in a quest to modernize its tax collection services, and to meet the needs of the taxpayers of the future in the digital economy.

Direktorat Jenderal Pajak (DJP) (Directorate General of Taxation)

Direktorat Jenderal Pajak (DJP) (Directorate General of Taxation)

INDUSTRY

Government

SOLUTIONS

Data Integration and Analysis

The tax authority’s digital transformation goals include the launch of self-service and personalized tax payments, a data-sharing platform for real-time data, and workforce automation. The transformation will also involve the use of data analytics to better segment taxpayers based on their risk profiles.

The digital transformation of DJP is a step towards introducing digital culture within the organization, and will better serve Indonesian citizens as it collects and distributes tax revenues more effectively. “Seventy-five percent of all revenue to the Indonesian government comes from taxes,” said DJP’s Chief Innovation Officer and Director of Information and Communications Technology (ICT), Iwan Djuniardi.

As CIO, Djuniardi is responsible for new IT system developments, and leads the digital transformation journey within the institution. DJP is tasked with ensuring that Indonesian citizens pay their taxes.

Since 2014, DJP has been collecting data from other departments about Indonesian citizens. The challenge is to cleanse the data to make it useful for integration into other systems as well as for analysis, because there is currently no single framework to integrate data between institutions.

Upon collection of data from over 70 departments, the tax department had immense challenges cleansing and matching that data across the board. “At that point, we were really suffering. We needed some help in integrating the data from all the institutions,” said Djuniardi. “We can make better policies if we can analyze the data,” he added.

We have data comprising billions of files with very different data sets. With Pentaho, we were successful in matching the data from a third parties at a rate of 40%. The success rate continues to increase. Before Pentaho, our matching rate was only 16%.
- Iwan Djuniardi,  DJP Chief Innovation Officer and Director of Information and Communications Technology (ICT)

The Solution

The most fundamental step of DJP’s digital journey was to deploy a resilient and fast data storage system that delivered a 100% data availability guarantee to ensure zero downtime. Downtime is detrimental to an organization like DJP, which relies on huge amounts of data to operate smoothly.

Online transaction processing (OLTP) was one of the key benefits of installing Hitachi Virtual Storage Platform G1000 (VSP G1000), an enterprise data storage platform backed by Hitachi’s 100% data availability guarantee. “With VSP G1000, OLTP speeds are accelerated by two to three times,” says Djuniardi.

Then there is all that unstructured data flowing into DJP. The organization implemented Hitachi Content Platform (HCP) to cleanse and structure the data. By using HCP, DJP could navigate through all the unstructured data much faster, thereby saving the organization time and manpower as well as boosting productivity.

DJP used Hitachi’s Pentaho software to gain further insights and to ease the management of data. “We have data comprising billions of files with very different data sets. With Pentaho, we are successful in matching the data from third parties at a rate of 40%. The success rate continues to increase. Before Pentaho, our matching rate was only 16%,” explained Djuniardi.

He notes that DJP is well on its way to becoming a truly digital organization. “Our data is quite good: The data in our system and can be easily integrated with other data sources. This helps us gather new insights, with the data being easily traceable,” he added.

Djuniardi was impressed by more than the hardware and software deployed by Hitachi Vantara. His long-standing partnership with Hitachi Vantara stems from the latter’s hands-on approach to customer support, and the way it offered in-depth advice and solutions whenever DJP ran into implementation issues.

“Hitachi Vantara offers us the solution with the product, while other principals offered us the product without the solution. We are working together to solve problems.” he said.

Djuniardi added, “Even as other principals offered us products for object storage, cloud and data analytics, ultimately my team and I still chose Hitachi Vantara.”

The Outcome

VSP G1000 helped accelerate OLTP speeds by two to three times. Adding HCP allowed DJP to navigate through all the unstructured data much faster, thereby saving the organization time and manpower as well as boosting productivity.

Additionally, Pentaho enabled DJP to significantly boost the success of matching data, increasing the rate of matching to 40%, up from 16%, which freed up resources.

DJP is now well on its way to becoming a truly digital organization. The data collected is easily integrated with other data sources and easily traceable, which helps the DJP to gather new insights.

Hitachi Vantara’s long-standing partnership with DJP stems from a hands-on approach to customer support, and the way it is offered. “Hitachi Vantara offers us a solution with the product, while other principals offered us the product without the solution. We work together to solve problems,” Djuniardi concluded.

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