Have you ever felt overwhelmed when trying to start a business in a new country? Especially in Indonesia, where the market is huge and opportunities are abundant, but the regulations can sometimes feel confusing. The good news is, in 2025, the Indonesian government is working hard to make life easier for foreign entrepreneurs, one of which is through a new digital tax system called Coretax.
But don’t celebrate just yet—this system has its own challenges that might make you scratch your head. In this article, we’ll dive deep into what Coretax is, why it matters if you want to register a company in Indonesia, and tips to get your business running smoothly without hassle. Ready? Let’s get started!
Understanding the Coretax System in Indonesia
Imagine you are an expat who just arrived in Jakarta or Bali, or a foreign investor eyeing opportunities in Indonesia’s tech, manufacturing, or tourism sectors. Your first step? Legally establishing a company.
Before your business logo appears on websites or business cards, there’s a crucial process to complete: business permits, tax ID (NPWP), and a mountain of paperwork that can be exhausting. Coretax comes as a solution to speed up and digitize these procedures. This system, created by the Directorate General of Taxes (DJP), manages everything related to taxes—from NPWP registration and tax reporting to taxpayer data validation. Sounds advanced, right? It is, but it hasn’t always run smoothly, especially during its launch phase.
So, what exactly is Coretax? It’s a digital platform that centralizes all tax-related matters in one place. Starting January 2025, DJP rolled out Coretax with cool features like facial recognition for security, easier NPWP registration, and direct connection to the Online Single Submission (OSS), the government system for business permits.
If you want to establish a PT (limited liability company) or CV (partnership), Coretax is your main gateway to get the company’s NPWP, which is now mandatory through this system. Through Coretax, you can register NPWP, obtain a Business Identification Number (NIB) from OSS, and complete basic permits all in one process. Efficient on paper, at least.
But hold on, things didn’t go perfectly as advertised. At launch, Coretax frustrated many taxpayers, including foreign businesspeople. There were reports of slow systems, server crashes, and serious errors like failed facial validations or company responsible person data that couldn’t be saved.
Some expats even complained about difficulties registering NPWP due to OTP codes not arriving or passport validation errors—especially for foreigners from countries like China. DJP said they identified 22 issues and fixed some, like missing registration menus or password reset processes, which are now easier. However, by May 2025, complaints about data validation or system crashes during peak hours still existed. For those unfamiliar with Indonesian or local procedures, these challenges can be extremely stressful.
Why You Need a Trusted Partner to Handle Coretax
That’s why having a partner who understands the ins and outs of doing business in Indonesia is crucial. Establishing a company is not just about filling forms on Coretax but also understanding local regulations.
For example, if you want to open a tourism business in Bali, you’ll need additional permits from the tourism office. If your business involves import-export, you must comply with Customs regulations. Not to mention branding—today’s digital era means no online presence is like being invisible. A professional website is a must, especially since over 60% of Indonesian consumers check websites or social media before buying products or services.
So, what can you do to avoid headaches? First, prepare all important documents beforehand. For expats, make sure you have a valid passport, work visa (KITAS if you already reside in Indonesia), and domicile letter if your company needs a local address. For foreign investors setting up a PT PMA (foreign investment company), documents like notary deeds, approval from the Investment Coordinating Board (BKPM), and Business Identification Number (NIB) from OSS are mandatory.
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Second, learn how OSS and Coretax work. OSS is the main gateway for business permits and can be accessed through its official website. But if you want to save time and effort, leave it to the experts.
Speaking of saving time, don’t forget to build your website early. Why? Because Indonesia has a huge digital market. A neat, informative website can be a powerful marketing tool, attracting clients from Jakarta, Bali, or even overseas. Plus, it boosts your business credibility. Imagine potential partners from Europe or America visiting your well-designed, SEO-friendly website—they will instantly see your company in a better light. Digital trends show Indonesian consumers like to research online before making deals, so don’t get left behind.
Bizindo as Your Link to Coretax
In short, although Coretax still has flaws, the opportunities to start a business in Indonesia in 2025 are enormous. The system is much improved compared to previous years, and DJP continues to enhance Coretax stability. However, to avoid getting lost in a jungle of regulations, you need a partner who knows the terrain.
That’s where Bizindo comes in. We have years of experience assisting expats, foreign entrepreneurs, and investors with company registration in Indonesia. From notary deeds, business permits, NPWP, to creating eye-catching websites that make competitors jealous, Bizindo ensures the process is fast and hassle-free. We also provide consultations on tax rules and special permits, so you can focus on your business strategy, not paperwork.
So, what are you waiting for? 2025 is the perfect time to expand in Indonesia. With Coretax getting better and a market that never sleeps, now is the time to make your business plan a reality. Don’t fear system errors or complex regulations—Bizindo is here to help every step of the way. Ready to start? Contact us now, and let’s get your business moving fast!
Contact Bizindo Now!
Dreaming of starting a business in Indonesia? Bizindo is ready to help register your company, handle permits, and build a stunning website for branding. Save time, avoid hassle, and focus on success. Visit bizindo.com for more information. Let’s make your business dream come true in 2025!
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