Apindo: Caution Needed in Discussions on Halting Tax Refunds

Jakarta (ANTARA) - The Indonesian Employers’ Association (Apindo) believes that caution and further examination are required regarding the discourse on halting tax refunds before it is formulated into policy. Chairman of Apindo’s Taxation Committee, Siddhi Widyaprathama, stated in Jakarta on Friday that this is important because it will have a broad impact on the performance of the national business sector. According to him, the business world views fiscal policy as needing to maintain resilience amid the current geopolitical dynamics, which pose real challenges to supply chains and global economic stability. “Although we have no control over those external factors, we have the ability to synchronise internal policies that are within our control. Synchronisation of fiscal policies that align with the needs of the real sector will be crucial for maintaining the resilience of the domestic economy in the current conditions,” said Siddhi. Refund funds, he continued, are essentially excess pre-paid taxes that technically should be returned to companies and will directly impact the operational cash flow of companies. “The smooth process of tax refunds allows the business world to continue fulfilling operational obligations, from production chains to meeting workers’ rights,” Siddhi stated. Furthermore, he said that one of the main pillars of a healthy investment climate is the presence of legal certainty. “This is very important to provide a sense of security for business actors in planning long-term investments and maintaining investor confidence in the stability of regulations in Indonesia,” said Siddhi. The business world, he continued, collectively serves as the main supporter of the national GDP and the engine of job creation. “Taxation policies are not merely instruments for revenue but tools for stimulus to ensure that the business world remains competitive and continues to contribute optimally to the national economy,” Siddhi explained. Siddhi added that Apindo fully supports the supervisory and audit functions carried out by the tax authorities. He believes that accountable supervision, if run alongside efficient services, will create good governance standards. “We believe that as strategic partners, harmonious coordination between government policies and the operational needs of the business world is the key to stability,” said Siddhi.