Coretax Readiness Amidst Plummeting Tax Revenue and Optimism Over Foreign Investment

The current situation is marked by concerns over a sharp decline in state revenue amidst the government's optimism regarding an increase in foreign investment flows, concurrently with significant progress in the tax reform agenda. The Ministry of Finance (Kemenkeu) acknowledges the weakening performance of tax revenue while asserting the readiness of the Coretax System for implementation. On the other hand, a difference in views has emerged between the President and Bank Indonesia (BI) regarding the Export Proceeds Foreign Exchange (DHE) policy, which is considered vital for national monetary stability.

State revenue faces serious fiscal pressure amidst global investment optimism. Tax revenue plummeted during this period, and the Ministry of Finance (Kemenkeu) attributes the blame to factors such as tax refunds (restitution) and declining commodity prices. This condition poses a serious challenge to the fiscal target. However, Finance Minister Purbaya Yudhi Sadewa stated that global investor buying interest is improving, and foreign capital will soon pour into Indonesia, indicating government optimism that foreign direct investment (FDI) can support domestic growth despite sluggish tax revenue.

On the macro-policy front, coordination between monetary and fiscal authorities is under scrutiny. There is a difference in claims between President Prabowo and Bank Indonesia (BI) regarding the 100% mandatory placement rule for Export Proceeds Foreign Exchange (DHE) from Natural Resources (SDA). This difference in claims creates regulatory uncertainty concerning monetary and fiscal policy, which could affect the stability of the Rupiah exchange rate.

Meanwhile, fundamental reform in the taxation system continues, despite adoption hurdles. The Director General of Taxes (DGT) ensures that the Coretax System is ready for use, and its implementation will be carried out for Annual Tax Return (SPT) submissions starting in 2026, aiming to modernize tax administration. Although the system is claimed ready, the DGT notes that only 26 million Taxpayers (WP) have activated Coretax. This relatively low number indicates that the socialization and adoption of the new system remain a significant undertaking, even though the implementation deadline is rapidly approaching.

Although Minister Purbaya is optimistic about the influx of global investors, the reality of plunging tax revenue poses fiscal pressure. This decline is caused by external factors (commodity prices) and internal factors (restitution). On the regulatory side, the difference in DHE SDA claims between the President and BI underscores the need for closer policy coordination. Meanwhile, the DGT faces a dual challenge: ensuring the Coretax System is technically ready and massively encouraging Coretax activation among Taxpayers (WP), whose numbers remain low.

The latest developments reflect a battle between optimism at the macro level through increased foreign investment and pressure at the micro level due to weakened tax revenue. The success of future fiscal reform will be heavily determined by the Directorate General of Taxes (DGT)'s ability to resolve the restitution issue and implement the Coretax System smoothly and comprehensively. On the other hand, regulatory certainty regarding Export Proceeds Foreign Exchange (DHE) from Natural Resources is a vital element in maintaining monetary stability and strengthening the country's foreign exchange reserves.