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Indonesia Turns to Old Tax System after Troubles with New Software

February 11, 2025, 11.05 AM | Source: Reuters
Indonesia Turns to Old Tax System after Troubles with New Software

ILUSTRASI. core tax was built by a consortium of South Korean firm LG CNS and Qualysoft Group at a cost of 1.2 trillion rupiah


CORETAX SYSTEM - JAKARTA. Indonesia's tax office is allowing taxpayers to use its old online system while it tries to fix a new system launched this year that has crashed and glitched, with users complaining of disruption to business operations.

The upgrade, called "core tax", was launched on Jan. 1, intended to improve taxpayer profiles and compliance oversight, but it has been mired by issues like data mismatches, crashing and other problems.

The old system will work in parallel with the new one and penalties will be waived on late filings caused by the disruption, according to a joint statement issued late on Monday by the tax office and the parliamentary commission overseeing the financial system.

Parliament ordered the tax office to come up with a road map for the core tax implementation, it said, without providing details on the timeline.

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The core tax was built by a consortium of South Korean firm LG CNS and Qualysoft Group at a cost of 1.2 trillion rupiah ($73.44 million).  

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