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From innovation to frustration: Coretax vs. Australia’s tax system
When the tax system falters, it does not merely inconvenience taxpayers, but it also risks undermining public trust in government institutions and stalls broader reform efforts.
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Palembang Ilir Barat Tax Office employees serve taxpayers submitting their annual tax returns on Feb. 29, 2024. (Antara/Nova Wahyudi )
F
or many Indonesians, navigating the tax system has always been a daunting task. Yet when the Coretax program was unveiled, there was hope for a smoother, more streamlined experience. Instead, countless taxpayers have reported stalled logins, cryptic error messages and endless hours spent troubleshooting, a far cry from the promise of a modernized, unified platform.
How did such a visionary project stumble? And what lessons can Indonesia draw from Australia’s streamlined digital tax model, where filing a return can take just 30 minutes and refunds are often received in not more than two weeks?
Tax administration plays a critical role in economic development, funding essential public services and supporting sustainable growth. When the tax system falters, it does not merely inconvenience taxpayers, but it also risks undermining public trust in government institutions and stalls broader reform efforts.
By taking a closer look at the Coretax debacle and comparing it with Australia’s phased, user-centric approach, we can identify practical steps Indonesia can adopt to regain momentum and rebuild public confidence. A modern digital tax system is within reach, provided that execution, support and infrastructure receive the same level of attention as the initial vision.
Despite the initial promise, the Coretax platform has struggled to deliver the streamlined experience taxpayers had anticipated.
This disconnect between vision and reality highlights a broader issue. When public-sector digital initiatives lack robust planning and comprehensive user support, innovation can devolve into a source of frustration rather than progress.
However, the ramifications extend beyond mere inconvenience. Launched by President Prabowo Subianto on Dec. 31, 2024, the system cost Rp 1.2 trillion (US$74.4 million). Given the scale of this investment, its persistent shortcomings pose significant financial risks to the state.
