Mining Association Archives - Indonesian Tax Consultants Association

IKPI, Jakarta: The Indonesian Mining Association (API-IMA) is urging the government to take a prudent approach by reconsidering the discourse on halting tax refunds. This policy is considered potentially to have a significant impact on business stability as well as the operational continuity of companies, particularly in the mining sector. IMA Executive Director Sari Esayanti stated that tax refunds constitute the right of every taxpayer for excess tax payments already deposited with the state. This mechanism is deemed important for maintaining company cash flow while reflecting good governance practices. “We believe the current system is already good, where companies fulfil their obligations and can reclaim their rights if the payments made turn out to be in excess, or conversely must pay if there is an underpayment,” Sari said in her statement. According to her, legal certainty regarding the tax refund mechanism is also a crucial factor in maintaining investor confidence in Indonesia’s business climate. IMA is also inviting the government to continue strengthening collaboration with the business world in formulating tax policies to support sustainable economic growth. A similar view was expressed by the Indonesian Employers Association (Apindo). This business organisation assesses that the discourse on halting tax refunds needs to be considered carefully to avoid disruptions to company operations. Apindo Tax Committee Chairman Siddhi Widyaprathama said that the policy could affect company cash flow, which has so far relied on the mechanism for returning excess tax payments. In his view, every tax policy change must consider its impact on the business world to avoid hindering business activities or domestic investment.