Coretax Problems? Luhut Intervenes to Address This Important Issue

Bisnis | Ekonomi - Posted on 15 January 2025 Reading time 5 minutes

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan and other DEN members held a meeting with Minister of Finance Sri Mulyani Indrawati at the Directorate General of Taxes (DGT) Of

DIGIVESTASI - Core Tax Administration System Implementation Faces Initial Challenges. The Core Tax Administration System (Coretax), introduced on January 1, 2025, has encountered several accessibility challenges for taxpayers. Nevertheless, the government remains optimistic that ongoing improvements will enhance services and boost tax revenue realization.

 

“Although still in the transition phase, I am confident this system will gradually function effectively. I also encourage the continuation of helpdesk services during this early implementation phase to promptly address emerging challenges,” said the Chair of the National Economic Council (NEC), Luhut Binsar Pandjaitan, in an official statement released on Tuesday (January 14, 2025).

 

Luhut explained that the previous information system of the Directorate General of Taxes (DGT) faced limitations, including outdated technology, incomplete data, and insufficient data integrity. The introduction of Coretax is designed to resolve these issues through an integrated accounting system capable of consolidating comprehensive tax data.

 

Digitalization is considered a vital element in accelerating Indonesia’s economic transformation. Full support for this initiative is part of the national tax reform deemed crucial for the country’s progress.

 

The World Bank estimates that implementing Coretax could increase Indonesia’s tax ratio by 2% from the current level and close the tax gap by up to 6.4% of the gross domestic product (GDP). This improvement has the potential to add IDR 1,500 trillion to state revenue over the next five years.

 

Luhut also emphasized the importance of integrating Coretax with the government’s technological systems, known as Govtech, to enhance data interoperability among agencies. This initiative aims to improve efficiency and increase public tax compliance.

 

However, Luhut stressed that data security must remain a top priority. “The security system must be meticulously designed to build taxpayer trust. With real-time data exchange between Coretax and Govtech, data integrity and security must be maintained to ensure the program’s success,” he stated.

 

The implementation of Coretax is expected not only to improve tax services but also to positively impact state revenue. Data shows that the DGT has recorded 776 million e-invoices annually, or an average of 2 million e-invoice transactions daily. This potential is seen as an area that can be further optimized through tax digitalization.

 

Luhut added that the government hopes Coretax’s presence will create a more transparent, accountable, and service-oriented tax ecosystem. The system is also expected to strengthen Indonesia’s economic foundation in facing global challenges in the future.

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