IMA: Proposal to Halt Tax Refunds Should Be Reconsidered as It Could Disrupt Business Climate

REPUBLIKA.CO.ID, JAKARTA – The Indonesian Mining Association (API-IMA) is urging the government to take a prudent approach by reviewing the proposal to halt tax refunds, which could have a significant impact on business stability and the operational continuity of companies in the mining sector. Tax refunds represent the right of every taxpayer to reclaim excess payments made to the state, playing a crucial role in supporting cash flow and reflecting sound government governance. “We believe the current system is already effective, where companies fulfil their obligations and can reclaim their rights if payments made turn out to be in excess, or conversely, must pay additional amounts if there is a shortfall,” stated Sari Esayanti, Executive Director of IMA. Sari added that legal certainty in tax refunds is vital for investor trust. IMA invites the government to continue collaborating with the business community to achieve sustainable economic growth. The same view was expressed by the Indonesian Employers Association (Apindo), which assesses that the proposal to halt tax refunds needs to be carefully considered to avoid disrupting company operations. Chairman of Apindo’s Taxation Committee, Siddhi Widyaprathama, stated that the policy could potentially affect company cash flows, which have hitherto depended on the mechanism for refunding excess tax payments.