Use of National Residence Numbers and Taxpayer Identification Numbers in Public Service

The President of the Republic of Indonesia issued Presidential Regulation No. 83 of 2021 concerning Inclusion and Utilization of National Residence Numbers and/or Taxpayer Identification Numbers in Public Service (“PR 83/2021”) on September 9, 2021.  PR 83/2021 aims at implementing a standardized and integrated use of the National Residence Numbers (each, an “NIK”) and Taxpayer Identification Numbers (each, an “NPWP”) in public services to fulfill the basic rights and needs of the citizens and residents of the Republic of Indonesia.

The use of a standardized and integrated NIK and/or NPWP is as a reference to the unique data identity of a citizen and resident of the Republic of Indonesia as one of the reference codes in public services. The use of NIKs and/or NPWPs is also aimed at supporting the Indonesian One Data Policy contemplated in Presidential Regulation No. 39 of 2019 dated June 17, 2019 (“PR 39/2019”). Article 2 of PR 39/2019 states that Indonesian One Data Policy was made to regulate the implementation of data governance produced by Central Agencies and Regional Agencies to support planning, implementation, evaluation, and control of development.

Below, we set out the key provisions of PR 83/2021:

  • Addition and Inclusion of NIKs and/or NPWPs for Public Service Recipients

The addition and inclusion of NIKs and/or NPWPs is intended as the identity marker for every given public service in Indonesia upon a proposed public service application or for every recipient of public service whose status is still active in Indonesia.

The provisions on the addition and inclusion of NIK and/or NPWP are as follows:

  • An NIK as an identity marker for an individual who does not yet have an NPWP;
  • An NIK and an NPWP as an identity marker for an individual who has an NPWP; and
  • An NPWP as an identity marker for a foreign entity and individual who does not have an NIK.
  • Validation of NIKs and/or NPWPs

A public service provider submits the given NIK and/or NPWP for validation to the Ministry of Internal Affairs through the Directorate General of Public and Civil Registry for NIKs, and to the Ministry of Finance through the Directorate General of Taxation for NPWPs.

  • The Utilization of Data That Have Included NIK and/or NPWP

The data of public service recipients that included the validated NIKs and/or NPWPs may be used for:

  • prevention of Corruption;
  • prevention of Money Laundering;
  • tax purposes;
  • updating the Identity Data in the Data Population; and
  • any other purposes in accordance with applicable laws and regulations.

The data of a public service recipient must be kept secured and confidential by a public service provider in accordance with the laws and regulations. The regulations also stipulate that every public service provider must complete the inclusion of NIKs and/or NPWPs for each public service recipient data whose status is still active in Indonesia within 2 years since the issuance of PR 83/2021.

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October 1, 2021

Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Ammarsyarif Ghazyandra Goenawan (agoenawan@aksetlaw.com) for further information.

 

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