Indonesian Tax Reform: A Never-Ending Dialectic

Authors

• Charoline Cheisviyanny Ms, Universitas Negeri Padang, IndonesiaFollow
• Niki Lukviarman Mr, Universitas Andalas, IndonesiaFollow
• Verni Juita Mrs, Universitas Andalas, IndonesiaFollow
• Suhanda Suhanda Mr, Universitas Andalas, IndonesiaFollow

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This work is licensed under a Creative Commons Attribution-Share Alike 4.0 International License.

Abstract

Indonesian tax reform has evolved through recurring cycles of institutional change, yet it continues to face persistent tensions among fiscal demands, administrative capacity, and taxpayer compliance. While existing tax reform studies predominantly examine reform outcomes in terms of revenue performance and compliance rates, limited attention has been given to the structural contradictions that shape reform trajectories over time. This study re-conceptualizes Indonesian tax reform as a dialectical process by applying a thesis–antithesis–synthesis framework to three major reform cycles since 1983. Using an interpretive qualitative design based on documentary reconstruction and illustrative interview evidence, the analysis demonstrates that each reform phase generates new institutional tensions that subsequently trigger further reform. CoreTax, introduced as part of the third wave of reform, is identified as an unresolved antithesis, characterized by technological instability, regulatory complexity, and fragile reason-based trust. This study contributes theoretically by integrating macro-level dialectical analysis with the Extended Slippery Slope Framework, offering a multi-layered explanation of how power-trust dynamics interact with structural reform cycles. Rather than viewing tax reform as a linear modernization project, this study proposes a cyclical and contradiction-driven understanding applicable to jurisdictions undergoing digital tax transformation. Practically, the findings highlight that sustainable reform depends not solely on technological innovation, but on the capacity to resolve structural tensions between regulatory ambition and institutional readiness.

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Recommended Citation

Cheisviyanny, Charoline Ms; Lukviarman, Niki Mr; Juita, Verni Mrs; and Suhanda, Suhanda Mr (2026) "Indonesian Tax Reform: A Never-Ending Dialectic," BISNIS & BIROKRASI: Jurnal Ilmu Administrasi dan Organisasi: Vol. 33: No. 2, Article 5.
DOI: 10.20476/jbb.v33i2.1646
Available at: https://scholarhub.ui.ac.id/jbb/vol33/iss2/5