Kadin Rejects Proposal to Withhold Tax Refunds for Business Certainty
Amid global economic uncertainties triggered by tariff wars and geopolitical conflicts, the Indonesian Chamber of Commerce and Industry (Kadin) has underscored the importance of policy stability and certainty for the business world. Kadin has firmly expressed objections to the proposal to withhold tax refunds, which it believes could disrupt business sustainability and the national investment climate.
Kadin’s Deputy Chairman for Industry, Saleh Husin, stated that business actors are currently struggling hard to maintain operations to preserve job availability. According to him, support for government programmes, including job creation, can only be realised if there is policy stability.
“Business actors affiliated with Kadin Indonesia fully support all presidential programmes, including job creation. This can all proceed if there is calm and business certainty,” Saleh Husin said in Jakarta on Thursday (9/4/2026).
Kadin’s statement is a response to the proposal by the Chairman of DPR Commission XI, Mukhamad Misbakhun, in a national television dialogue on Wednesday (8/4/2026). Misbakhun had previously floated the idea that delaying tax refunds could potentially increase state revenues by up to Rp500 trillion, serving as a fiscal buffer against the surge in global energy prices.
However, Kadin views this step as potentially counterproductive. Saleh emphasised that tax refunds are the right of business actors for excess tax payments already deposited with the state. Withholding those funds would be tantamount to disrupting companies’ cash flows, particularly in the manufacturing sector that absorbs millions of workers.
The former Minister of Industry reminded that the current economic conditions are abnormal. Therefore, synergy between the government, legislature, and the business world is essential to address the impacts of global pressures on the domestic economy.
“The business world should be given calm, not faced with policies that could complicate the business climate. Do not let policies emerge that trigger investor doubts about legal certainty in Indonesia,” Saleh asserted.
Kadin hopes the government remains consistent with pro-growth policies and maintains market confidence. Policy stability is seen as a key factor so that entrepreneurs do not hesitate to make new investments and can continue to sustain the national economy during tough times.