The Indonesian Mining Association (API-IMA) has called on the\ngovernment to review the proposal to withhold tax refunds. IMA Executive\nDirector Sari Esayanti believes this policy could disrupt business\nstability and company operations in the mining sector.<\/p>\n
\u201cWe believe the current system is already good. Companies fulfil\ntheir obligations and can reclaim their rights if payments made are in\nexcess, or pay the shortfall if underpaid,\u201d Sari said in a written\nstatement on Tuesday, 14 April 2026.<\/p>\n
Tax refunds represent the taxpayer\u2019s right to reclaim excess payments\ndeposited with the state. This mechanism, according to Sari, is crucial\nfor maintaining company cash flow and reflecting good governance.<\/p>\n
Sari stated that legal certainty regarding refunds is vital for\ninvestor confidence. She invited the government to continue\ncollaborating with the business community to ensure sustainable economic\ngrowth.<\/p>\n
Previously, Finance Minister Purbaya Yudhi Sadewa announced a review\nof the tax refund mechanism. He emphasised that the policy on returning\nexcess tax payments would not be halted but would be tightened to\nprevent state revenue leakages.<\/p>\n
\u201cIt does not mean we are stopping refunds, but we will tighten it so\nthat those who are not entitled do not receive them,\u201d Purbaya said\nduring a working meeting with Commission XI of the DPR at the\nparliamentary complex in Senayan, Jakarta, on Monday, 6 April 2026.<\/p>\n
He noted that the amount of refunds disbursed by the state each year\nis substantial. In 2025, it reached Rp 361.5 trillion, an increase of\n35.9 percent compared to 2024. Purbaya also highlighted that monthly\nrefund reports are not yet sufficiently transparent, raising suspicions\nof potential leakages.<\/p>\n
The Indonesian Employers Association (Apindo) has cautioned that the\npolicy should be carefully reviewed due to its broad impact on the\nbusiness world. Chairman of Apindo\u2019s Taxation Committee, Siddhi\nWidyaprathama, stated that refunds are a mechanism regulated by law and\nmust be returned to companies.<\/p>\n
These funds play a key role in maintaining cash flow to keep business\noperations running, from production to fulfilling obligations to\nworkers. He added that legal certainty is a main pillar in creating a\nhealthy investment climate. Consistency in implementing regulations,\nincluding the tax refund mechanism, is an important signal for\nbusinesses in planning long-term investments and maintaining investor\ntrust.<\/p>\n
Professor at the Faculty of Economics and Business, Andalas\nUniversity, Syafruddin Karimi, views the withholding of refunds as\nrisking a constriction of space for the real sector. According to him,\nwhen funds are held back, companies tend to hold back on spending,\nproduction, distribution, and employment absorption. The impact could\nspread to workers, suppliers, small and medium enterprises, and suppress\npublic purchasing power.<\/p>\n
Syafruddin believes that withholding refunds is not an effective step\nto strengthen fiscal policy. \u201cA strong fiscal position must be built\nthrough improvements in administration, supervision, and expansion of a\nfair tax base, not through withholding taxpayer rights,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/tax-refund-withholding-could-disrupt-mining-industry-1776163848", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }