The study, published in the International Journal of Sustainability in Research (IJSR), was conducted by Chris Dayanti Br. Ginting, Ahmad Nashiruddin Mushoddiq Rahman, and Masnawaty Sangkala from Makassar State University, alongside Asriyana and Gina Anggi Rianthy from the School of Economics YPUP Makassar. The researchers examined how Indonesia’s tax administration has evolved over time and why Coretax is becoming a central component of the country’s fiscal modernization strategy.
Their findings are significant because tax collection remains one of the most important sources of government revenue. As economies become increasingly digital and interconnected, tax authorities worldwide face growing pressure to improve efficiency, transparency, compliance monitoring, and data integration.
Why Indonesia’s Tax Reform Matters
Indonesia introduced the self-assessment tax system in 1983, giving taxpayers responsibility for calculating, paying, and reporting their own taxes. The approach was designed to encourage voluntary compliance while reducing administrative burdens on the government.
However, self-assessment also created challenges. Tax compliance depends heavily on taxpayer knowledge, perceptions of fairness, trust in government institutions, and the effectiveness of oversight mechanisms. Over time, policymakers realized that voluntary reporting alone could not fully address issues such as tax avoidance, fragmented data systems, and limited administrative productivity.
As a result, Indonesia gradually introduced a series of reforms, including modernization of the Directorate General of Taxes (DGT), expansion of the tax base, electronic filing systems, digital payment platforms, and data-driven compliance monitoring.
The new study argues that Coretax should be understood within this broader historical context rather than as a standalone technology project.
How the Research Was Conducted
The researchers reviewed and synthesized findings from 31 national and international academic studies related to tax administration reform, taxpayer compliance, digital taxation, institutional modernization, tax technology, data integration, and Coretax implementation.
Instead of conducting surveys or experiments, the team performed a comprehensive literature review. They categorized previous studies into major reform themes and traced how Indonesia’s tax administration evolved across multiple stages.
This approach allowed the researchers to identify patterns, opportunities, challenges, and gaps in existing knowledge about digital tax governance.
Seven Stages of Indonesia’s Tax Administration Evolution
The study identifies seven major phases in Indonesia’s tax reform journey:
1. Self-Assessment Phase
Taxpayers became responsible for calculating and reporting their own tax obligations. Compliance relied heavily on tax literacy, ethics, and trust.
2. Institutional Modernization
The Directorate General of Taxes strengthened its organizational structure through specialized taxpayer offices and administrative reforms.
3. Tax Base Expansion
Policies such as tax amnesty programs, audits, penalties, and enforcement initiatives aimed to increase participation and reduce tax evasion.
4. Service Digitalization
Electronic systems including e-Filing, e-Billing, e-SPT, and e-Invoicing simplified reporting and payment processes.
5. Technology Adoption
Attention shifted toward user experience, digital literacy, trust, internet access, and system usability.
6. Data-Driven Tax Administration
Tax authorities increasingly adopted data analytics, real-time reporting, information exchange, and compliance monitoring.
7. Coretax Integration
Coretax emerged as a unified platform connecting taxpayer registration, reporting, payment, supervision, validation, transparency, and accountability within a single digital ecosystem.
According to the researchers, this final stage marks a fundamental shift from declaration-based compliance toward data-driven tax governance.
Coretax Brings Together Trust and Enforcement
One of the study’s most important findings is that Coretax combines two dimensions of tax compliance often treated separately: trust and enforcement.
The literature reviewed by the researchers suggests that taxpayers are more likely to comply when systems are transparent, easy to use, and perceived as fair. At the same time, compliance also depends on monitoring, audits, sanctions, and the ability of tax authorities to verify information.
Coretax seeks to balance both elements through integrated data systems.
By linking taxpayer information, registration records, reporting systems, and third-party data sources, the platform allows authorities not only to receive tax declarations but also to validate and analyze them more effectively.
The researchers note that digital tax administration works best when convenience and oversight operate together rather than as competing priorities.
Opportunities Created by Coretax
The study highlights several potential benefits of Coretax and integrated digital tax administration:
- Improved administrative efficiency
- Reduced taxpayer compliance costs
- Greater reporting accuracy
- Stronger transparency and accountability
- Expanded tax databases
- Better risk-based supervision
- Enhanced compliance monitoring
- More effective use of data analytics
- Improved integration between NIK and NPWP systems
These improvements could help Indonesia strengthen fiscal governance while providing better services to taxpayers.
Challenges Remain
Despite its promise, the study also identifies significant challenges.
Successful implementation depends on:
- Reliable digital infrastructure
- High-quality data integration
- Cybersecurity protection
- Legal certainty and regulatory support
- Adequate staff capacity
- Digital literacy among taxpayers
- Public trust in government systems
- User-friendly system design
The researchers warn that technology alone cannot guarantee higher compliance or better revenue collection. Poor data quality, weak governance, limited internet access, or inadequate user education could undermine the benefits of digital transformation.
Implications for Policymakers and Businesses
The study offers important lessons for policymakers, tax authorities, businesses, and taxpayers.
For government agencies, the findings suggest that Coretax should be managed as a transformation of the entire tax administration ecosystem rather than merely a software upgrade.
For businesses, greater integration may reduce administrative complexity while improving reporting consistency and regulatory certainty.
For taxpayers, successful implementation could mean simpler procedures, faster services, and more transparent interactions with tax authorities.
The researchers argue that digital tax reform should focus not only on efficiency but also on fairness, accountability, taxpayer protection, and institutional legitimacy.
As Chris Dayanti Br. Ginting and colleagues explain, Coretax represents “an evolutionary stage of tax administration reform” and reflects a broader transition toward data-driven digital tax governance in Indonesia.
Author Profile
Chris Dayanti Br. Ginting, S.Ak., M.Ak. is a lecturer and researcher in Applied Accounting at Makassar State University (Universitas Negeri Makassar). Her research focuses on taxation, public sector accounting, fiscal governance, digital tax administration, and institutional reform.
The study was co-authored by:
- Ahmad Nashiruddin Mushoddiq Rahman, Makassar State University
- Masnawaty Sangkala, Makassar State University
- Asriyana, School of Economics YPUP Makassar
- Gina Anggi Rianthy, School of Economics YPUP Makassar
Source
Article Title: From Self-Assessment to Coretax: The Evolution of Tax Administration Reform in Indonesia—A Literature Review
Journal: International Journal of Sustainability in Research (IJSR), Vol. 4 No. 3 Tahun 2026
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