Coretax Tax System Faces Issues, DJP Reinstates Old System

Since its launch on January 1, 2025, the Core Tax Administration System (Coretax) developed by Indonesia’s Directorate General of Taxes (DJP) has encountered various unresolved technical issues. Instead of improving tax administration efficiency, the system has caused operational disruptions, affecting taxpayers.

According to a Reuters.com report, one of the main problems is frequent system failures, such as crashes and glitches, which have led to widespread complaints, including from foreign companies operating in Indonesia. The Indonesian Employers Association (Apindo) also reported data mismatches, delaying the issuance of crucial tax documents necessary for business transactions.

In response to these challenges, DJP has decided to temporarily reinstate the old tax system alongside Coretax. This measure aims to ensure smooth tax services while improvements to the new system are underway. Additionally, DJP has granted exemptions from penalties for late filings caused by Coretax malfunctions.

Meanwhile, the Indonesian Ombudsman has raised concerns about potential maladministration in the implementation of Coretax. The Ombudsman has urged DJP to rectify the issues promptly to prevent a decline in tax service quality. Identified risks include system failure to meet objectives, software bugs, and inaccessible services, as cited from Ombudsman.go.id on February 14, 2025.

According to Kompas.com, in a hearing with the House of Representatives' Commission XI, it was agreed that the old tax system will remain in use until Coretax is fully operational. This decision was made to ensure that tax services remain unaffected during system improvements.

With these ongoing challenges, DJP is expected to resolve the technical issues swiftly, ensuring that Coretax fulfills its original goal of enhancing tax administration efficiency and effectiveness.

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