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Core Tax System Faces Complaints, Here’s the Vendor Behind the System

by Raidi
2025-01-11
in Economic
A A
Core Tax System

Directorate General of Taxes, Ministry of FInance Bulding (Pinterest)

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Jakarta, Indonesia Sentinel — More than a week after its launch, Indonesia’s Core Tax system continues to face operational problems, sparking widespread complaints on social media. Users report significant difficulties accessing the new tax administration platform developed by the Directorate General of Taxes (DJP) under the Ministry of Finance.

Criticisms of the Core Tax system range from being unable to access the platform to encountering verification issues while updating taxpayer identification numbers (NPWP). Frustrated users have questioned the competence of the vendor tasked with building the system, with some highlighting the considerable government funds spent on the project.

Vendor and Procurement Details

According to Kumparan, the DJP announced the winning bidder for the Core Tax Administration System (CTAS) through an official publication titled Tender Winner for the Core Tax Administration System Procurement. The procurement process was divided into two tenders:

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  1. Commercial Off-The-Shelf (COTS): This involved providing ready-made software and hardware modules for the Core Tax System including the implementations process.
  2. Owner’s Agent-Project Management and Quality Assurance (OA-PMQA): This tender focused on consulting services for project management and quality assurance.

The two tender winners were listed in Minister of Finance Decree No. 549/KMK.03/2020, dated December 1, 2020, regarding the Selection of Two-Stage Tender Winners for the Procurement of System Integrator for the Core Tax Administration System.

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Application and System Tender

According to the list, the tender for COTS was awarded to LG CNS, a subsidiary of South Korea’s LG Corporation. LG CNS collaborated with Austria-based Qualysoft, a technology firm specializing in software engineering, to deliver and implement the system.

The total bid for this segment was valued at Rp1.23 trillion (approximately $82 million, including VAT), with an estimated project cost of Rp1.73 trillion (approximately $115 million, including VAT).

It was also stated that the funding source for the project came from the DIPA (Budget Implementation List) of the Directorate General of Taxes Head Office Work Unit for the 2020-2024 Fiscal Year.

Quality Assurance Oversight

Meanwhile, the OA-PMQA tender was awarded to PT Deloitte Consulting, an Indonesian branch of the global consulting firm Deloitte, headquartered in London, UK. Deloitte is tasked with overseeing project management, vendor coordination, and quality assurance to ensure the Core Tax system’s successful implementation.

Deloitte’s contract includes project and vendor management services, contract oversight, and quality assurance for the Core Tax Administration System. The total bid for Deloitte’s services was R117 billion ($7.8 million, including VAT), with the negotiated cost settling at Rp110 billion ($7.3 million).

Public Concerns

The  Core Tax system has raised questions about accountability and efficiency. Many Indonesians have expressed frustration, questioning the project’s execution and vendor behind the system. Critics have also urged the government to address the accessibility issues promptly to avoid further disruptions to taxpayers nationwide.

Read also : Indonesia Core Tax System Faces Major Complaints Over Access Issues

The Directorate General of Taxes (DJP) has issued an apology to all taxpayers for the issues encountered while using the Core Tax system’s service features. The agency assured the public that it is actively working to resolve the problems and improve the system’s functionality.

Meanwhile, the government remains committed to improving the Coretax system, which is intended to streamline tax reporting and enhance transparency in Indonesia’s tax administration.

 

(Raidi/Agung)

Tags: Core Tax SystemDJPTaxTaxpayers
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