Looking forward to introducing the value-added tax (VAT) within one year ahead, the Timor-Leste Tax Authority (TLA) conducted a study visit and a technical exchange on the VAT implementation to the Directorate General of Taxes (DGT) Headquarter in South Jakarta (Tuesday–Thursday, 7/7/26–9/7/26). The development of the VAT system design has become one part of Timor Leste’s national fiscal reform to strengthen domestic revenue mobilization and to improve the efficiency and fairness of the taxation system.
With the milestones since Indonesia’s tax reform in 1983, the DGT is recognized by the TLA as one of tax authorities with the capacity and the experience to manage and develop the VAT system. This visit was the second visit of Timor-Leste delegates to DGT after the first one in May 2025. The prior visit aimed to propose the cooperation program between DGT–Directorate General of Customs and Excise and Timor-Leste in export-import trade.
In this current visit, TLA sought for the practical knowledge, the best practice, and the valuable lessons from Indonesia, especially DGT. The main focuses of this visit were the VAT policy framework and design, the end-to-end business process, the architecture of information technology system, the compliance risk management, the tax enforcement, the taxpayers’ services and education strategy, the involvement and the support of the stakeholders, and the lesson learned from the VAT implementation in Indonesia.
The Commissioner of Timor-Leste Tax Authority (TLA), Nicodemos dos Reis Pereira, the General Director of Center for Capacity Development and Public Financial Management, Martinho Lopes, and the other 17 senior executives of TLA, Timor-Leste Customs Authority, the Ministry of Finance of Timor-Leste, and the Partnership for Inclusive Prosperity (PROSIVU) acted as the delegates.
Dwi Astuti, the Director of International Taxation, expressed the warm welcome to the delegates and the willingness to support Timor-Leste’s reform efforts.
“Indonesia and Timor-Leste share not only a geographic proximity, but also a long history of close cooperation, and it’s always an honor for us to host our Timorese colleagues and friends here,” said Dwi.
The experts from the Directorate of Tax Regulations I, the Directorate of Information and Communication Technology, the Directorate of Tax Data and Information, the Directorate of Tax Audit and Collection, the Directorate of Business Process Transformation, and the Directorate of Tax Dissemination, Services, and Public Relations presented the discussed topics to the TLA’s delegates.
The discussion would be continued to next step of data exchange between the two tax authorities. Dwi stated that the data had become one of the factors giving the significant effect to the tax compliance rate in tax administration.
“We also encourage to exchange the data, to continue the cooperation between Indonesia and Timor Leste. Maybe later we will have bilateral meeting. We will talk about the technical things regarding how we continue our cooperation in the exchange of information, since I said earlier that data is a very important aspect for every administrative institution,” explained Dwi.
The Director General of Taxes, Bimo Wijayanto, expressed a full support for Timor Leste in successfully implementing the reformed tax system.
“Indonesia would like to see our brother, Timor Leste, successfully implement tax system because Timor Leste’s success is also Indonesia’s success as our close neighbor and brother,” added Bimo.
In his closing remarks on behalf of TLA, Nico hoped that DGT would continue to support Timor Leste with the technical regulations knowledge for the successful implementation of the tax system. TLA also would look forward to the next partnership ahead.
“Thank you once again for your warm hospitality and friendship. We look forward to welcome you in Timor Leste and to continue this valuable partnership for many years to come. Thank you. Terima kasih banyak,” closed Nico.
| Reporter: Destiny Wulandari |
| Photographer: Istya Panca Subrata, Wibisono Mahendra |
| Editor: Yacob Yahya, co-reviewed by the Directorate of International Taxation |
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