Kadin Concerned that Proposal to Delay Tax Refunds Will Disrupt Investment Climate

Vice Chairman of the Industry Division of the Indonesian Chamber of Commerce and Industry (Kadin), Saleh Husin, has stressed the importance of maintaining policy certainty amid ongoing global pressures. Therefore, the proposal to delay tax refunds has the potential to trigger uncertainty and disrupt the domestic investment climate.

“The business world should be given peace of mind and certainty in operations, rather than being confronted with policies that could complicate the business environment, especially in the manufacturing sector that employs millions of workers,” Saleh stated in his remarks on Saturday, 11 April 2026.

Saleh said that business actors fundamentally support various government programmes, including efforts to create jobs. However, such support requires a stable business environment and regulatory certainty.

“Business actors affiliated with Kadin Indonesia fully support all presidential programmes, including job creation. This can all proceed if there is peace of mind and operational certainty,” said the former Minister of Industry.

According to him, in the current uncertain global economic conditions due to tariff wars and geopolitical conflicts, business actors are currently focused on maintaining business sustainability. Even retaining existing workers is a significant challenge, let alone creating new jobs.

Therefore, a policy that adds uncertainty risks holding back investment expansion. Moreover, the manufacturing sector, which absorbs millions of workers, is highly dependent on policy stability and a conducive business climate.

He emphasised that tax refunds are the right of the business world for excess tax payments already deposited with the state.

Delaying or halting refunds could potentially create new controversies and raise investor doubts about legal and policy certainty in Indonesia.

“Do not let policies emerge that create uncertainty and impact investment interest,” he said.

Saleh also reminded that the current global economic conditions are not normal. All stakeholders, including the government, legislature, judiciary, business world, and academics, need to collaborate to address global pressures that directly affect the national economy.