Challenges and Opportunities in the Implementation of Coretax in Indonesia

The implementation of Coretax, or the Core Tax Administration System, represents a significant reform in Indonesia's tax administration landscape. Officially launched on January 1, 2025, this system aims to enhance transparency, efficiency, and accountability within the tax collection process. However, the transition has not been without its challenges.

Background of Coretax

Coretax is designed to integrate various tax administration processes, facilitating easier reporting and payment for taxpayers. This initiative is grounded in Regulation of the Minister of Finance No. 81 of 2024, which outlines the objectives and operational framework for this new system [3].

Current Status of Implementation

As of early March 2025, the implementation of Coretax has faced several hurdles. Initial reports indicate that various technical issues have arisen, affecting taxpayer access and system functionality. For instance, businesses have encountered difficulties with registration and data submission due to server capacity limitations and data mismatches within the system [1] [5].

Key Challenges Faced

Technical Difficulties: Many users reported problems accessing the Coretax platform, including slow load times and system outages.
Data Accuracy: The effectiveness of Coretax relies heavily on accurate taxpayer data. Inaccuracies can lead to compliance issues and potential penalties for taxpayers [7].
Transition Period: The government has allowed a dual-system approach where some tax matters continue under the old system while others transition to Coretax. This has led to confusion among taxpayers about which system to use for different tax obligations [1].
Training and Support: There is a need for comprehensive training programs for both taxpayers and tax officials to ensure smooth operation within the new system [3].

Improvements Underway

In response to these challenges, the Directorate General of Taxes (DJP) has initiated several improvements:

System Upgrades: Enhancements have been made to server capacity and data validation processes to improve overall performance [5].
User Support: Increased support channels have been established to assist taxpayers with navigating the new system.
Feedback Mechanisms: The DJP is actively seeking feedback from users to identify ongoing issues and areas for improvement [5].

Future Outlook

Despite the challenges, Coretax holds significant potential for revolutionizing Indonesia's tax administration by streamlining processes and improving compliance rates. The government is committed to refining the system based on user experiences and technological advancements.

As stakeholders continue to adapt to this new framework, it is crucial that both the government and taxpayers remain engaged in a dialogue about further enhancements needed for effective implementation.

"The successful implementation of Coretax will not only improve tax collection but also enhance public trust in our taxation system," stated Mukhamad Misbakhun, Chairman of Commission XI DPR [1].

By addressing current challenges head-on and leveraging technology effectively, Indonesia can pave the way for a more efficient tax administration process that benefits all parties involved.