Indonesian Political, Business & Finance News

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

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

The Chairman of DPR Commission XI, Mukhamad Misbakhun, has highlighted issues with the Coretax tax administration system. He warned that the unprepared system must not sacrifice the tax ratio.

Misbakhun assessed that the emerging problems are not merely a matter of technological transition but indicate fundamental weaknesses in the planning and execution of the national tax reform project. He stressed that tax reform is a strategic national agenda that must not fail due to poor project management or system design errors.

“Coretax is not a small project. It is the backbone of the state’s revenue system. If complaints about an unfriendly design, unsynchronised business processes, and suboptimal system readiness arise from the start, the government must not be defensive. This must be thoroughly dissected,” said Misbakhun in his statement on Friday (27/3/2026).

Misbakhun reminded that the Finance Minister Purbaya Yudhi Sadewa’s admission of design issues and the complexity of the Coretax system should serve as an entry point for major corrections. Repairs must not be mere patchwork that could prolong the problems.

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

Misbakhun also warned of the risks of disrupted state revenue performance and the emergence of moral hazard in the form of declining voluntary taxpayer compliance due to eroded trust in the system.

“We must not risk 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. He called for an independent audit of the technology and project governance, evaluation of contracts and system developer performance, and strengthening of digital human resource capacity at the Directorate General of Taxes.

“The state must not 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.

He emphasised that Commission XI of the DPR would not hesitate to fully utilise its oversight function to ensure the strategic project returns to the right track.

“Commission XI will certainly request a comprehensive explanation from the government. This is not about finding fault but ensuring that tax reform does not deviate from its objectives. If something needs correction, it must be corrected. If something needs fixing, it must be fixed fundamentally,” he stated.

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