Imagine spending IDR 1.2 trillion (around USD 74 million) on a fancy new device, hyping it up for months, only to have it fizzle out right after unboxing. That’s pretty much what happened with Indonesia’s new tax system, Coretax.
Launched in early January 2025, it didn’t take long for the fireworks to turn into an explosive wave of criticism. Tax experts, the ombudsman, and even legislators at the House of Representatives all joined in the chorus, echoing people’s frustrations.
Errors, Failures, Not Updated
Since its official implementation in early January 2025, Indonesia’s new tax administration system, Coretax, has frequently received complaints from users.
According to data from the Indonesian Tax Consultants Association, by mid-January 2025, there were about 34 types of issues ranging from problems in creating tax invoices, errors in the electronic certificate application, failure in taxpayer’s data synchronization, to the displayed data not being updated.
Pino Siddharta, Head of the Department of Fiscal Policy Research and Studies of the Indonesian Tax Consultants Association, mentioned that all 34 types of issues were immediately reported to Indonesia’s Directorate General of Taxes (DGT) under the Ministry of Finance.
Pino also acknowledged that some of the problems had already been resolved by the DGT. However, there were also additional issues because during this initial phase, taxpayers and tax consultants were only partially fulfilling their tax obligations, particularly those related to value-added tax.
“Meanwhile, tax obligations such as income tax and others have not yet been carried out,” Pino stated, as reported by CNBC Indonesia.
No Fines, Sanctions or Penalties
Faced with criticism from all sides, ordinary citizens, business owners, and tax consultants, Indonesia’s Directorate General of Taxes (DGT) issued an apology for the delays in tax administration services.
Despite the complaints, they insisted on keeping the Coretax system running instead of shutting it down until it’s fully ready. Their solution? Running Coretax alongside the old electronic tax system at https://djponline.pajak.go.id/ while they continue to iron out the bugs.
To calm the backlash, DGT assured taxpayers won’t be fined, sanctioned, or face penalties if their tax obligations are delayed because of Coretax.
“We want to make it clear that with Coretax, taxpayers don’t need to worry about penalties if there are delays in issuing tax invoices or filing taxes during this transition period. DGT ensures there will be no extra burden on taxpayers because of switching from the old system to the new one,” wrote DGT in a statement dated January 10, 2025.
Dwi Astuti, DGT’s Director of Counseling, Service, and Public Relations, said that regulation exempting taxpayers from penalties due to issues with the new tax system is being prepared.
“There will be no penalties. Until when? Until Coretax is declared to be running smoothly. The regulation is being prepared and will be released soon,” said Dwi on January 22, 2025.
Restore Trust
The Coretax tax system, which was supposed to make paying and reporting taxes easier, ended up causing a lot of problems right from the start. This is a big deal because it affects public services and government revenue.
Various parties are calling for serious follow-up actions from the government and authorities to restore public trust in DGT. They want the government to take serious action to fix these issues and restore trust in the tax authorities.
According to Indonesia’s Public Service Law no 25 of 2009, failures in public services like Coretax can result in administrative sanctions for the organizers or implementers, ranging from warnings to dismissal from office, and even potential criminal sanctions and fines if the public service causes physical harm or state losses.
To avoid further problems, Indonesia’s House of Representatives has given the Directorate General of Taxes until April to fix everything.
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