Indonesian Political, Business & Finance News

Purbaya Denies Existence of a Quota for Tax Refund Disbursements

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Regulation

Finance Minister Purbaya Yudhi Sadewa denied the existence of any restriction or quota on tax refund disbursements at every Tax Service Office (KPP). He explained that refunds of overpaid taxes to taxpayers continue to be processed.

“No, there is no quota. We just check that the refunds are correct or not. If it’s wrong, it will be held back,” Purbaya said at the APBN KiTa May 2026 press conference in Jakarta on Tuesday, 19 May 2026, as reported by Antara.

He said the government is now more cautious in disbursing tax refunds. The move was taken because there are allegations of leakage in state revenues arising from large-value refunds that are not properly targeted.

Nevertheless, Purbaya stressed that the government is not stopping refunds for taxpayers who are indeed entitled to receive the overpaid tax returns.

“So far we have issued more than Rp160 trillion. If compared to last year’s full year Rp360 trillion, a rough calculation times three would be Rp480 trillion, higher than last year,” he said.

Purbaya said the government wants to ensure all refunds disbursed are properly verified and do not contain signs of irregularities.

Tax revenues as of 30 April 2026 reached Rp646.3 trillion, up 16.1 percent from last year’s realization of Rp556.9 trillion.

Tax receipts are mainly supported by personal income tax (PPh) and PPh 21, as well as value-added tax (VAT) and luxury-goods sales tax (PPnBM).

Personal income tax (PPh) and PPh 21 grew by 25.1 percent to Rp101.1 trillion. Meanwhile VAT and PPnBM rose 40.2 percent to Rp221.2 trillion.

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