Government Returns Rp361 Trillion in Tax Refunds to Businesspeople in One Year
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has once again complained about the massive scale of tax refunds throughout 2025. According to data from the Ministry of Finance (Kemenkeu), the realisation of tax refunds in 2025 amounted to Rp361.15 trillion, an increase of 35.9% from the previous year.
Tax refunds refer to the return of excess tax payments submitted by taxpayers to the state. As a note, refunds can be claimed based on two factors: excess tax payments or payments for taxes that were not actually due.
The significant increase, according to Purbaya, occurred in corporate income tax (PPh Badan) and domestic value-added tax (PPN DN). He revealed that three sectors benefited the most from these refunds: coal mining, palm oil, and fuel. Due to the large volume of refunds, Purbaya suspects there may be tax leakages.
“Last year’s refunds were enormous, Sir. 360 trillion. And the reports to me weren’t very clear. Month by month, how it was. Now it’s starting to be monitored. I suspect there, there’s a bit of leakage,” said Purbaya during a working meeting with Commission XI of the House of Representatives (DPR RI), quoted on Thursday (9/4/2026).
He stated that his side is conducting a thorough audit of the distribution of refunds, particularly those related to natural resources and other sectors with high refund claims. The audit will cover the period from 2020 to 2025.
To that end, Purbaya will collaborate with the Financial and Development Supervisory Agency (BPKP) as an external party for the auditing.
“I’m internal, focusing on 2025, and external, that’s involving BPKP from 2020 to 2025. So I want to see where all this is coming from,” he said.
The audit is targeted to be completed within one to two months ahead, so the results will be finalised and can be reported at the beginning of the second quarter of 2026.
“I’m asking BPKP. So in one or two months. But they said it’s ongoing. I’ll check again,” said Purbaya.
Purbaya emphasised that this audit does not mean the government will eliminate or abolish refunds. Purbaya only wants this tax facility to be truly utilised by the right parties in the correct manner.
He also revealed his suspicions regarding tax refunds. He observed anomalies in certain sectors. He cited the coal sector, which receives many refunds, even though this sector should bear a significant burden from value-added tax (PPN).
If his suspicions are proven, Purbaya will not hesitate to take violation cases to the legal realm, including if it involves internal parties from the Directorate General of Taxes.