https://provisio-id.com/provisioconsulting Government to Establish Digital Transformation Committee to Enhance Tax Compliance ,The Indonesian government is intensifying its efforts to reform the tax sector. President Prabowo Subianto recently approved the formation of the Digital Transformation Acceleration Committee, aimed at boosting taxpayer compliance through the implementation of digital technologies. This initiative is expected to improve tax administration systems and streamline processes.
Three Core Areas of Tax Digital Transformation
After attending a meeting led by President Prabowo at the Presidential Palace in Jakarta on Tuesday (January 7), Mari Elka Pangestu, a member of the National Economic Council (DEN), elaborated on the committee’s focus areas: digital ID, digital payment, and data exchange. These components are believed to simplify taxpayer identification, facilitate electronic tax payments, and enhance inter-agency data exchange.
- Digital ID will integrate taxpayer data more effectively.
- Digital payment systems are designed to make tax payments more convenient.
- Data exchange will improve inter-institutional coordination, reducing tax evasion.
Coretax: The Initial Step Toward Tax Digitization
As part of the transformation, the Ministry of Finance launched the Coretax system in January 2025. Coretax enables taxpayers to register, report, and pay taxes electronically, with its initial implementation focusing on Value-Added Tax (VAT).
Through this system, the government aims to enhance tax administration efficiency while increasing compliance. Mari Elka Pangestu emphasized that tax compliance is more critical than raising tax rates, viewing digital transformation as the key to ensuring adherence to tax regulations.
Digital Infrastructure as a Foundation
Minister for Administrative and Bureaucratic Reform (PANRB), Rini Widyantini, highlighted the importance of digital public infrastructure as a foundational element of this transformation. Adequate digital infrastructure, she noted, will facilitate the implementation of technology-driven policies across various sectors, including taxation.
This infrastructure includes technological networks that support faster, more integrated digital public services, such as tax administration systems.
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Challenges and Opportunities in Digital Transformation
While the potential benefits of tax digitalization are substantial, certain challenges remain:
- Readiness of Stakeholders: Ensuring that businesses, particularly small and medium enterprises (SMEs), are prepared to adopt digital tools for fulfilling tax obligations.
- Data Security: Safeguarding the vast amounts of information involved in digital tax processes must be a priority.
Despite these hurdles, the government remains optimistic that this initiative will significantly transform Indonesia’s tax system. Digitalization is expected to improve taxpayer compliance and, ultimately, strengthen state revenue.
Conclusion
The formation of the Digital Transformation Acceleration Committee marks a significant step in modernizing Indonesia’s tax system. By focusing on digital ID, digital payment, and data exchange, the government aims to enhance administrative efficiency and promote taxpayer compliance.
Moreover, the development of robust digital public infrastructure is vital to realizing these reforms. Public support and participation are critical to ensuring the success of this transformation. With a more accessible, secure, and transparent digital system, the government hopes to foster greater tax awareness across all societal levels.