The Directorate General of Taxes (DGT) at the Ministry of Finance recorded tax refunds totaling IDR 191.82 trillion through the end of August 2026, down 37% from IDR 304.29 trillion during the same period last year.
Director General of Taxes Bimo Wijayanto said the decline in tax refunds was in the range of 30%. He made the statement following a press conference on the September 2026 edition of the APBN KiTa report at the Ministry of Finance office in Jakarta on Friday (Sept. 18, 2026).
By tax type, income tax refunds amounted to IDR 55.79 trillion. Meanwhile, refunds for value-added tax (VAT) and sales tax on luxury goods totaled IDR 134.32 trillion.
Property tax (PBB) refunds and refunds for other taxes amounted to IDR 1.71 trillion.
By comparison, PPh refunds through August 2025 stood at IDR 90.99 trillion. During the same period, VAT and sales tax on luxury goods refunds reached IDR 212.29 trillion, while PBB and other tax refunds totaled IDR 1.01 trillion.
Risk Profile and Level of Compliance
Bimo explained that the DGT continues to process tax refund applications in accordance with applicable standard operating procedures (SOPs). In doing so, the tax authority takes into account each taxpayer’s risk profile and level of compliance.
Taxpayers who meet the requirements can also continue to benefit from the preliminary tax refund facility.
According to Bimo, tax refunds are a taxpayer’s right when evidence shows that an overpayment has occurred. Therefore, the DGT will refund the excess amount once the supporting documents and transactions have been verified.
“As long as all documents and transactions proving the tax overpayment can be verified, we will definitely return the excess amount,” he said.
Taxpayer Refund Rights
Finance Minister Suahasil Nazara stressed that the government will continue to refund tax overpayments that are legitimately owed to taxpayers.
He said the DGT processes tax refunds in accordance with applicable tax procedures and regulations.
“If it is a right of the business, it will definitely be granted,” Suahasil said at a press conference on the September 2026 edition of the APBN KiTa report at the Ministry of Finance office in Jakarta on Friday (Sept. 18, 2026).
Suahasil also called on businesses to fulfill their tax obligations and follow the tax refund mechanism in accordance with regulations. He said he had instructed Bimo to strengthen tax refund management, including communication on the mechanism implemented by the DGT.
“I have told the Director General of Taxes, Bimo Wijayanto, to strengthen the management of tax refunds, including communication on the refund management mechanism we are implementing,” he said.
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