Coretax and its impact on tax reform and Sri Mulyani’s position

The implementation of the Coretax system in Indonesia’s tax reform continues to draw criticism. Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, has even urged President Prabowo Subianto to audit the system. This audit request stems from Indonesia’s stagnant tax ratio of 10 percent, indicating that the tax system has not yet been able to optimize state revenue. Ideally, Coretax was expected to enhance tax administration efficiency and taxpayer compliance. However, this situation raises a fundamental question: is Coretax truly effective in boosting state revenue, or does it instead pose structural weaknesses that hinder tax optimization? To subscribe please click here