Indonesia's Industry Minister Agus Gumiwang Kartasasmita said tax refunds remain one of the issues raised by businesses. According to Agus, the timely disbursement of tax refunds is crucial to companies’ cash flow and liquidity.
Agus said the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) had also conveyed similar complaints. For businesses, tax refunds are needed to maintain cash availability, including to support the financing of expansions and new projects.
“Complaints from Kadin are indeed among the issues frequently brought to us regarding tax refunds. Most of them consider tax refunds important because they are directly related to the cash flow they have to manage,” Agus said during a working meeting with House of Representatives Commission VII on Monday (Aug. 31, 2026).
He explained that a company’s cash flow is closely linked to its ability to carry out its business plans. The availability of funds is one of the considerations when a company seeks to finance a new project.
“They have new projects that need to be funded. That also depends on the readiness of their cash flow,” Agus said.
In response to the complaints, the Ministry of Industry has coordinated with the Ministry of Finance. Agus said the issue of tax refunds had been raised and discussed with Minister of Finance Purbaya Yudhi Sadewa.
“And of course, we fully understand these complaints. We have coordinated, conveyed the issue, and consulted with the Minister of Finance, who has the authority and policy responsibility over tax refunds,” he explained.
Higher Risk of Layoffs
The issue of tax refunds had previously also drawn attention from House of Representatives Commission VII Deputy Chair Rahayu Saraswati. She said several businesses in East Java had complained about difficulties in obtaining tax refunds.
According to Rahayu, delays in tax refunds could disrupt industrial activities if companies come under liquidity pressure. The impact could also extend to the continuity of employment.
Rahayu said she received the complaints about a month before bringing the issue to the government. Industry players said disrupted cash flow could make it difficult for companies to maintain operations and potentially increase the risk of layoffs.
“This is very urgent, because it concerns millions of people working in the industrial sector,” Rahayu stressed.
Complaints over tax refunds have not come only from domestic companies. Several foreign companies operating in Indonesia have also faced similar issues, as tax refunds are directly linked to corporate cash management.
The disbursement of tax refunds has also become a concern for several Japanese companies investing in Indonesia. Japanese media previously reported that some Japanese companies had encountered difficulties in obtaining tax refunds.
DGT: In Line with Procedure
Director General of Taxes Bimo Wijayanto explained that tax refund disbursements follow a mechanism that taxpayers must go through, including an audit. According to Bimo, tax refunds are processed after the audit is completed, with disbursements following standard operating procedures (SOPs) and prescribed deadlines.
“Everything has a procedure. So, we conduct an audit, and once the audit is completed, we disburse the tax refund in accordance with the SOP, the deadline, and all the applicable requirements,” Bimo said when met at the House of Representatives on Tuesday (Sept. 1, 2026).
He stressed that an audit is part of the tax refund mechanism. Therefore, the audit should not be interpreted as withholding tax refund payments.
Bimo reiterated that disbursements are made after all required processes have been completed and continue to follow the applicable SOPs and deadlines.
“Everything has a procedure,” he stressed.
Tax Refunds Fall 33.65%
Meanwhile, data from the Ministry of Finance’s Directorate General of Taxes (DGT) showed that tax refunds through July 2026 fell 33.65% from the same period last year.
Total realized tax refunds reached IDR 185.38 trillion, down from IDR 279.39 trillion recorded through July 2025.
By tax type, corporate income tax (PPh) refunds stood at IDR 52.66 trillion. Meanwhile, domestic value-added tax (VAT) refunds reached IDR 130.9 trillion.
Refunds from other types of taxes amounted to IDR 1.82 trillion.
The decline in realized tax refunds came as audits remained one of the stages in the disbursement process. The DGT has maintained that tax refunds are paid after taxpayers fulfill the requirements and the audit process is completed.
Also Read:
Breaking Down the Article 21 Withholding Tax Provisions
Tax Refunds Are a Right, Not a Fiscal Favor
Article 26 Income Tax: Withholding Tax on Foreign Taxpayers in Indonesia
