Indonesian Political, Business & Finance News

House Commission XI Highlights Core Tax System Issues: Tax Ratio Must Not Become a Victim

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
House Commission XI Highlights Core Tax System Issues: Tax Ratio Must Not Become a Victim
Image: MEDIA_INDONESIA

The Chairman of DPR Commission XI, Mukhamad Misbakhun, has called on the government not to minimise the various issues with the Core Tax administration system. According to Misbakhun, the problematic Core Tax is not merely a matter of technological transition.

“Rather, it is an indication of fundamental weaknesses in the planning and execution of the national tax reform project,” he stated in an official remark on Friday (27/3).

Misbakhun stressed that tax reform is a strategic national agenda. In his view, it must not fail due to weak project management, system design errors, or suboptimal oversight of the programme’s implementation.

“Core Tax is not a small project. It is the backbone of the state revenue system. If complaints about unfriendly design, unsynchronised business processes, and suboptimal system readiness emerge from the start, the government must not be defensive. This must be thoroughly dissected,” said Misbakhun.

He reminded that the Finance Minister Purbaya Yudhi Sadewa’s admission of design issues and system complexity should serve as an entry point for major corrections. “Do not just make patchwork repairs that could prolong the problems,” he said.

“Tax digitalisation is not just about software. It is about changing the state’s work system. If change management is not ready, training is insufficient, and the transition is not well-designed, what occurs is service disruption, not reform,” he added.

Misbakhun also warned of greater risks if Core Tax problems are not resolved structurally soon. These risks include potential disruptions to state revenue performance and moral hazard in the form of declining voluntary taxpayer compliance due to eroding trust in the system.

“We must not jeopardise the tax ratio just because the administration system is not ready. If taxpayers face administrative difficulties, the effect can directly impact compliance. If that is disrupted, state revenue is also at risk,” he asserted.

Therefore, Misbakhun urged the government to take more decisive corrective steps. These include conducting independent technology audits and project governance audits, evaluating contracts and system developer performance, and ensuring strengthened digital human resource capacity within the Directorate General of Taxes to avoid long-term dependency.

“Do not let the state appear to be experimenting with its own tax system. This concerns Indonesia’s fiscal credibility. There must be a clear timeline, measurable improvement targets, and transparent accountability,” said Misbakhun.

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