Rendi A. Witular and Aditya Suharmoko, The Jakarta Post, Jakarta
President Susilo Bambang Yudhoyono has appointed Mochamad Tjiptardjo, the director of investigation and intelligence at the directorate general of taxation, as the new tax chief.
Tjiptardjo will replace outgoing director general of taxation Darmin Nasution, who is now Bank Indonesia's (BI) senior deputy governor, according to tax office spokesman Djoko Slamet Surjoputro.
"Information has been circulating about Pak Tjiptardjo becoming the new tax chief," Djoko said on Monday, without elaborating further.
The inauguration of the new chief is slated for Tuesday.
Tjiptardjo has been on the rise since the unravelling of one of the country's largest alleged tax fraud involving plantation conglomeration Asian Agri, which is controlled by tycoon Sukanto Tanoto.
Under his lead, the investigation into the fraud progressed fairly smoothly, with the case soon to be submitted to the Attorney General's Office for prosecution.
Tjiptardjo's career as a tax official was spent mostly outside Jakarta as his refusal to compromise with recalcitrant taxpayers infuriated the old guard in the tax office, who then made a point of keeping him as far away from head office as possible.
He spent five years alone as regional tax office head for Southern Sumatra and Bangka Belitung Islands, a post deemed less prestigious given his seniority.
Tjiptardjo could not confirm his appointment, saying he had not been invited to the inauguration yet.
"A lot of people have already congratulated me. But until now, I haven't received any instructions nor invitation for the inauguration ceremony," he said. "Maybe the invitation is still on its way."
A reform-minded tax chief is needed to continue the current reform Finance Minister Sri Mulyani Indrawati launched in 2007 to root out protracted graft in the agency.
It is feared that the failure to pick a committed tax chief will break the already high-cost reform in the agency, which now derives around 70 percent of the state revenue.
Since legislators selected Darmin as BI's senior deputy governor in May, the hunt for his replacement has been shrouded in ambiguity as various parties are vying to pass their candidates to help protect their vested interests and compromise the reform efforts.
In response to Tjiptardjo's appointment, legislator Dradjat Wibowo said it was time to select an internal official symbolizing the agency was ready to be led by its own best officials.
"It will boost the tax office administration's confidence," said Dradjat.
"Tjiptardjo is known for being highly committed to reforming the agency."
Tjiptardjo's profile
Born: Pekalongan, 1951 Career: December 2006 - present: Director of investigation and intelligence 2001 - 2006: Head of South Sumatra and Lampung regional tax office
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