Jakarta, CNBC Indonesia - The Directorate General of Taxes (DJP)\nrecorded that the high level of refunds or requests for overpaid tax\nreturns in 2025 was one of the causes of the decline in tax collections\nthroughout last year.<\/p>\n
In the DJP Performance Report 2025, at least three business sectors\nexperienced a rapid increase in refunds, namely the palm oil industry or\nCPO, fuel trade, and coal mining.<\/p>\n
\u201cRefunds increased significantly, especially in the palm oil industry\n(60.7%), fuel trade (82.9%), and coal mining (68.6%),\u201d quoted from the\nDJP Performance Report 2025, on Monday (20\/4\/2026).<\/p>\n
The DJP Performance Report 2025 also mentioned that the increase in\nrefunds in 2025, which affected the tax revenue shortfall, reached\n35.9%, particularly in domestic VAT and corporate income tax.\nUnfortunately, the DJP did not disclose the amount of the refunds.<\/p>\n
\u201cThe 35.9% increase in refunds, mainly in domestic VAT and corporate\nincome tax, pressured non-oil and gas income tax and VAT & luxury\ngoods sales tax revenues,\u201d as stated in the DJP Performance Report\n2025.<\/p>\n
The DJP emphasised that tax revenues up to the end of December 2025,\nworth Rp 1,917.93 trillion, indeed did not meet the target set in the\nstate budget of Rp 2,189.31 trillion due to the increased refunds.<\/p>\n
Specifically for the increase in income tax refunds, the DJP\nconsiders it caused by the moderation of commodity prices in 2023, which\nled to a decline in profitability that year, so the corporate income tax\nreturns submitted in April 2024 showed an overpayment status.<\/p>\n
Then, regarding the increase in domestic VAT refunds due to the rise\nin preliminary refund applications from the accumulation of three years\u2019\noverpayment compensation.<\/p>\n
To address this issue, last year the DJP ensured it implemented\nalternative solutions by conducting supervision over 2025 tax\nrefunds.<\/p>\n
Starting from 1 May 2026, the government also plans to implement a\nnew policy on the return of overpaid taxes, or refunds.<\/p>\n
This policy will be regulated in a Minister of Finance Regulation\n(PMK) that revises PMK No.\u00a039\/PMK.03\/2018, which has been amended\nseveral times, most recently with PMK 119\/2024.<\/p>\n
Finance Minister Purbaya Yudhi Sadewa previously explained that the\nchange in the refund scheme for corporate taxpayers was carried out\nbecause it is suspected to have been the culprit behind the leakage of\nstate revenues.<\/p>\n
According to Purbaya, the value of refunds disbursed by the state\neach year is not small. Last year alone, the amount reached around Rp\n361.5 trillion, up 35.9% from the 2024 record.<\/p>\n
\u201cLast year\u2019s refunds were very large, Sir. Rp 360 trillion, and the\nreports to me were not very clear. Month by month, how it was. Now it\u2019s\nstarting to be monitored. I suspect there, there\u2019s a bit of leakage,\u201d\nsaid Purbaya in a working meeting with Commission XI of the House of\nRepresentatives early this week.<\/p>\n
The mechanism for tightening refunds is carried out with\ncomprehensive audits, especially those related to refunds in the natural\nresources business sector (SDA). The audit process will cover the period\nfrom 2020 to 2025.<\/p>\n
Purbaya will collaborate with the Financial and Development\nSupervisory Agency (BPKP) as an external party for the auditing.\n\u201cInternally, I\u2019m focusing on 2025, and externally, that\u2019s involving BPKP\nfrom 2020 to 2025,\u201d he said.<\/p>\n
He explained that the audit is conducted to identify vulnerable\npoints in the refund system, while ensuring that its distribution\nremains on target.<\/p>\n
\u201cSo now we\u2019re tightening it. It doesn\u2019t mean we\u2019re stopping refunds,\nbut we\u2019re tightening so that those who are not entitled don\u2019t get\nrefunds,\u201d he stated.<\/p>\n
As is known, in the draft regulation, provisions regarding the\ntimeframe for settling applications are included, namely a maximum of\nthree months for income tax and one month for value-added tax since the\napplication is received.<\/p>\n
This plan was revealed in the Draft Minister of Finance Regulation\nthat has been submitted to the Ministry of Law.<\/p>\n
\u201cAs part of regulatory renewal, this Draft Minister of Finance\nRegulation will revoke and replace several previous regulations related\nto the preliminary return of excess tax payments, and is planned to take\neffect on 1 May 2026,\u201d quoting the Directorate General of Legal\nRegulations (DJPP) website of the Ministry of Law.<\/p>\n
The DJPP held a Harmonisation, Rounding, and Concept Finalisation\nMeeting for the Draft Minister of Finance Regulation on Procedures for\nPreliminary Return of Excess Tax Payments from Friday to Saturday (10-11\nApril 2026) virtually.<\/p>\n
\u201cThis meeting is a follow-up to previous harmonisation activities\nconducted on 6 April 2026, to perfect the substance and ensure the\nconformity of the Draft Minister of Finance Regulation\u2019s content with\nlegal regulations.\u201d<\/p>\n
The activity was attended by representatives from the Coordinating\nMinistry for the Economy, Ministry of Finance, Ministry of State\nSecretariat, and ranks of the Ministry of Law, particularly the\nDirectorate General of Legal Regulations.<\/p>\n
One of the main points is the mechanism for examining taxpayer\napplications, which serves as the basis for the Director General of\nTaxes in determining whether a preliminary return can be granted or\nnot.<\/p>\n
In addition, it is regulated that if the examination results show\nthat formal requirements are met and there is an excess tax payment, the\nDirector General of Taxes may issue a Decision Letter for Preliminary\nReturn of Excess Tax. Conversely, if it does not meet the provisions or\nthere are certain conditions such as tax examination or law enforcement\nprocesses, the application may be rejected.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/revealed-companies-in-this-sector-request-the-most-tax-refunds-1776671466", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }