House of Representatives Warns the DGT: Fix the Coretax by April 2025

Following the significant feedback and complaints from taxpayers concerning the constraints in the coretax, Commission XI summoned the Director General of Taxes Suryo Utomo to appear before the parliament. During the hearing, it was finally agreed that the coretax system, which has been in operation since 1 January 2025, will continue to run.

However, in parallel with the coretax, the former DGT administrative system, i.e., the SIDJP, is again used by taxpayers. This implies that the coretax will be implemented in parallel with the form DGT system, in particular, e-faktur and e-filing.

Chairperson of Commission XI of the House of Representatives Mukhamad Misbakhun stated that the use of the coretax system alongside the SIDJP is expected to address various challenges faced by taxpayers in the coretax system. On another note, this measure also aims to prevent disruptions in the coretax system from affecting tax revenue collection efforts.

“The Directorate General of Taxes should re-utilise the former tax system as a precautionary measure to mitigate changes in the ongoing improvement of the coretax so as not to interfere with the collectability of tax revenues,” he remarked.

Misbakhun also added that the parliament allows the DGT to perform improvements, thereby, the implementation of the coretax system does not hinder state revenues.

“We are giving the opportunity until tax returns are completed. State revenues must not be disrupted due to the IT system,” he said.

The Director General of Taxes Suryo Utomo elaborated that the coretax system can indeed run in parallel with the former system. He cited an example where the DGT has once again permitted large-scale taxable persons (Pengusaha Kena Pajak/PKP in Indonesian) to prepare tax invoices using e-faktur.

“If deemed necessary, we shall re-use the former system. As such, the coretax continues to run. However, if necessary, we must revert to the former system,” he added.

Information on coretax has indeed dominated tax news in the past week. However, there are other noteworthy topics worth exploring, including the government-borne Article 21 Income Tax policy as well as the impact of budget efficiency on the Indonesian economy.

The following is a review of tax articles in a week.

DGT Needs to Prepare a Coretax Roadmap with Minimum Risks

Commission XI of the House of Representatives has urged the DGT to develop a roadmap for the implementation of the coretax administration system.

Chairperson of Commission XI Mukhamad Misbakhun said that the implementation of the coretax to date continues to encounter various obstacles. According to him, the DGT needs to prepare a roadmap related to the implementation of the lowest risk-based coretax.

"The Directorate General of Taxes of the Ministry of Finance has prepared a roadmap for the implementation of the lowest risk-based coretax and facilitated services to taxpayers. These services are a primary concern for all of us,” he claimed. (DDTCNews)

All Taxable Persons Can Now Use e-Faktur

All taxable persons (Pengusaha Kena Pajak/PKP in Indonesian) may now prepare tax invoices using the e-faktur client desktop application and the e-faktur host-to-host application (e-faktur of a Tax Application Service Provider or Penyedia Jasa Aplikasi Perpajakan/PJAP in Indonesian).

These provisions are outlined in the Director General of Taxes Decree No. KEP-54/PJ/2025 concerning the Determination of Certain Taxable Persons. This measure is intended to provide convenience in the preparation of tax invoices.

There are now three applications for the preparation of tax invoices that can be used. The three channels include: the main channel, namely the coretax system; PJAP which is integrated with the coretax system; and e-faktur client desktop application. These provisions have been effective from 12 February 2025. (DDTCNews)

Periodic VAT Returns Remain Filed Using the Coretax

Taxable persons may use the e-faktur desktop application only for preparing tax invoices and replacing tax invoices prepared through the e-faktur desktop application.

Should a taxable person wish to perform refunds, cancel tax invoices or file periodic VAT returns, all three may only be conducted through the coretax administration system.

“Refunds, cancellation of tax invoices and filing of periodic VAT returns are conducted through the DGT coretax,” the DGT wrote in its announcement. (DDTCNews)

NIK-TIN Must Match for Article 21 Income Tax to Be Government-Borne

The government has issued MoF Reg.10/2025 which stipulates the granting of the government-borne (Ditanggung Pemerintah/DTP in Indonesian) Article 21 Income Tax incentive in the context of economic stimulus this year.

Article 4 of MoF Reg. 10/2025 details the criteria for employees eligible for government-borne Article 21 Income Tax, inter alia, having a national identification number (Nomor Induk Kependudukan/NIK in Indonesian) that has been matched as a Taxpayer Identification Number (TIN).

“... [Employees] having a Taxpayer Identification Number and/or National Identification Number administered by the Directorate General of Population and Civil Registration as well as has been integrated with the administration system of the Directorate General of Taxes (DGT),” reads Article 4 paragraph (2) subparagraph a of MoF Reg. 10/2025. (DDTCNews)

The Impact of Budget Efficiency on the Indonesian Economy

Minister of Finance Sri Mulyani Indrawati stated that measures aimed at spending efficiency will not necessarily result in a slowdown of economic growth.

Sri Mulyani asserted that the total state expenditure in 2025 would remain unchanged notwithstanding efforts to improve efficiency. She added that the impact on economic growth largely depends on how the saved expenditure is reallocated.

“If the budget is reallocated to activities that generate the same or even greater multiplier effect, will be significantly more positive,” she remarked. (DDTCNews) (sap)