Finance Minister Purbaya Yudhi Sadewa has taken note of growing complaints from businesses over tax refunds, indicating that implementation on the ground may have differed from the instructions previously given to officials at the Directorate General of Taxes (DGT).
Purbaya said the matter needs to be investigated further to determine why the implementation of the policy may have shifted from the initial instructions.
He explained that the tax refund oversight initially focused on the natural resources sector, particularly coal companies. At the time, the government was paying close attention to subsidy payments worth around IDR 24 trillion to IDR 25 trillion to coal producers.
However, Purbaya suspects that the focus may have shifted during implementation, causing the policy to affect other sectors as well.
“That was actually what should have been monitored. But I don’t know, the implementation seems to have shifted somewhat. I will sort it out later,” Purbaya said during a press statement in Jakarta on Tuesday (Sept. 9, 2026).
Asked about the reason for the shift in the implementation of the instructions, Purbaya said the matter would first be reviewed before the government decides on its next steps.
“Why was there a shift from that instruction? I’ll check,” he said.
Tax refund issues were also previously raised by Industry Minister Agus Gumiwang Kartasasmita. He said the government had received numerous complaints about delays in tax refunds, including from businesses affiliated with the Indonesian Chamber of Commerce and Industry (Kadin Indonesia).
According to Agus, tax refunds are important for companies because they are closely linked to their ability to manage cash flow. Refunds can help businesses maintain liquidity, particularly when they need financing to operate or develop new projects.
“Complaints from Kadin have indeed been among the many complaints we have received regarding tax refunds. Most of them consider these refunds important because they are related to the cash flow they are dealing with,” Agus said during a working meeting with House of Representatives Commission VII on Monday (Aug. 31, 2026).
Agus said the government understood the concerns raised by businesses. The Ministry of Industry, he added, had conveyed the issue to Finance Minister Purbaya Yudhi Sadewa, who has authority over tax policy.
Industry Complaints
Tax refund issues have also been raised by a number of industry players. Deputy Chair of House of Representatives Commission VII Rahayu Saraswati said companies in East Java were facing difficulties in receiving tax refunds, potentially affecting their liquidity and operations. The situation could also threaten employment and raise the risk of layoffs.
Similar complaints have come from foreign companies, including a number of Japanese investors operating in Indonesia. For these companies, tax refunds are closely tied to cash-flow management and their ability to finance business activities.
Meanwhile, Director General of Taxes Bimo Wijayanto stressed that tax refunds continue to be processed in accordance with applicable procedures. Taxpayers must undergo an audit before refunds can be paid. Once the audit is completed, payments are made in accordance with standard operating procedures (SOPs) and the prescribed deadlines.
DGT data, meanwhile, showed that tax refunds reached IDR 185.38 trillion through July 2026, down 33.65% from IDR 279.39 trillion during the same period last year. Of the total, corporate income tax refunds amounted to IDR 52.66 trillion, domestic value-added tax refunds to IDR 130.9 trillion, and refunds for other types of taxes to IDR 1.82 trillion.
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
