Finance Minister Purbaya to Dismiss Two Senior Officials Over Tax Refund Leakage

Finance Minister Purbaya Yudhi Sadewa has stated that he will dismiss two senior Ministry of Finance officials due to tax refund leakage. The two officials are suspected of providing information regarding the amount of overpaid tax refunds. Purbaya said the officials gave statements that the potential tax refunds were lower than they should have been. However, at the end of the year, the amounts disbursed were quite substantial. “I investigated five of the highest-ranking officials handling refunds. Today, I will dismiss two of them,” he said during a media briefing at the Ministry of Finance in Jakarta on Monday, 4 May 2026. Despite this, he declined to name the officials who will be dismissed. Purbaya also stated that the investigation results have been submitted to the Financial and Development Supervisory Agency (BPKP), which is currently conducting an investigative audit of overall tax refund payments. BPKP is examining the suspected tax refund leakage that occurred between 2016 and 2025. The State Treasurer suggested that BPKP investigate thoroughly to prevent the state from being caught off guard. Because he considers the refund payments to be quite large. Especially in the coal industry, the VAT (value-added tax) shortfall is Rp25 trillion, and the refunds.” On one hand, Purbaya has also issued a new regulation on tax refunds effective from 1 May, namely Ministry of Finance Regulation (PMK) number 28 of 2026. Through this PMK effective from 1 May, the criteria for recipients of preliminary refunds or quick tax refunds have been tightened. Whereas in the previous regulation, taxable entrepreneurs could request refunds of overpaid value-added tax (PPN) up to Rp5 billion, under the new regulation, it is limited to only Rp1 billion in one tax year. Purbaya reasoned that this regulation was issued to make the tax refund process more orderly.