Navigating Digital Transformation: A Qualitative Analysis of the Coretax System Implementation in Indonesia

Abstract

This article explores the implementation of Coretax, Indonesia’s new digital tax administration system launched in early 2025. Designed to modernize and simplify tax processes, Coretax promises improved efficiency, transparency, and compliance through automation and real-time data integration. Using a qualitative approach based on literature analysis, the study investigates the system’s perceived benefits and challenges from the perspectives of taxpayers, consultants, and officials. Findings show that while Coretax offers streamlined services and stronger data oversight, its rollout has faced major hurdles—ranging from technical glitches and system slowdowns to limited user training and accessibility issues. These problems have especially impacted small businesses, many of which struggle to adapt to digital procedures. Contrary to expectations, Coretax has increased reliance on consultants rather than reducing it. The study highlights a gap between the system’s design goals and users’ real-world experiences. It concludes that successful digital transformation in public services requires not only strong technology, but also inclusive planning, user readiness, and adaptive governance.