Revealed! Companies in This Sector Request the Most Tax Refunds

Jakarta, CNBC Indonesia - The Directorate General of Taxes (DJP) recorded that the high level of refunds or requests for overpaid tax returns in 2025 was one of the causes of the decline in tax collections throughout last year.

In the DJP Performance Report 2025, at least three business sectors experienced a rapid increase in refunds, namely the palm oil industry or CPO, fuel trade, and coal mining.

“Refunds increased significantly, especially in the palm oil industry (60.7%), fuel trade (82.9%), and coal mining (68.6%),” quoted from the DJP Performance Report 2025, on Monday (20/4/2026).

The DJP Performance Report 2025 also mentioned that the increase in refunds in 2025, which affected the tax revenue shortfall, reached 35.9%, particularly in domestic VAT and corporate income tax. Unfortunately, the DJP did not disclose the amount of the refunds.

“The 35.9% increase in refunds, mainly in domestic VAT and corporate income tax, pressured non-oil and gas income tax and VAT & luxury goods sales tax revenues,” as stated in the DJP Performance Report 2025.

The DJP emphasised that tax revenues up to the end of December 2025, worth Rp 1,917.93 trillion, indeed did not meet the target set in the state budget of Rp 2,189.31 trillion due to the increased refunds.

Specifically for the increase in income tax refunds, the DJP considers it caused by the moderation of commodity prices in 2023, which led to a decline in profitability that year, so the corporate income tax returns submitted in April 2024 showed an overpayment status.

Then, regarding the increase in domestic VAT refunds due to the rise in preliminary refund applications from the accumulation of three years’ overpayment compensation.

To address this issue, last year the DJP ensured it implemented alternative solutions by conducting supervision over 2025 tax refunds.

Starting from 1 May 2026, the government also plans to implement a new policy on the return of overpaid taxes, or refunds.

This policy will be regulated in a Minister of Finance Regulation (PMK) that revises PMK No. 39/PMK.03/2018, which has been amended several times, most recently with PMK 119/2024.

Finance Minister Purbaya Yudhi Sadewa previously explained that the change in the refund scheme for corporate taxpayers was carried out because it is suspected to have been the culprit behind the leakage of state revenues.

According to Purbaya, the value of refunds disbursed by the state each year is not small. Last year alone, the amount reached around Rp 361.5 trillion, up 35.9% from the 2024 record.

“Last year’s refunds were very large, Sir. Rp 360 trillion, and the reports to me were not very clear. Month by month, how it was. Now it’s starting to be monitored. I suspect there, there’s a bit of leakage,” said Purbaya in a working meeting with Commission XI of the House of Representatives early this week.

The mechanism for tightening refunds is carried out with comprehensive audits, especially those related to refunds in the natural resources business sector (SDA). The audit process will cover the period from 2020 to 2025.

Purbaya will collaborate with the Financial and Development Supervisory Agency (BPKP) as an external party for the auditing. “Internally, I’m focusing on 2025, and externally, that’s involving BPKP from 2020 to 2025,” he said.

He explained that the audit is conducted to identify vulnerable points in the refund system, while ensuring that its distribution remains on target.

“So now we’re tightening it. It doesn’t mean we’re stopping refunds, but we’re tightening so that those who are not entitled don’t get refunds,” he stated.

As is known, in the draft regulation, provisions regarding the timeframe for settling applications are included, namely a maximum of three months for income tax and one month for value-added tax since the application is received.

This plan was revealed in the Draft Minister of Finance Regulation that has been submitted to the Ministry of Law.

“As part of regulatory renewal, this Draft Minister of Finance Regulation will revoke and replace several previous regulations related to the preliminary return of excess tax payments, and is planned to take effect on 1 May 2026,” quoting the Directorate General of Legal Regulations (DJPP) website of the Ministry of Law.

The DJPP held a Harmonisation, Rounding, and Concept Finalisation Meeting for the Draft Minister of Finance Regulation on Procedures for Preliminary Return of Excess Tax Payments from Friday to Saturday (10-11 April 2026) virtually.

“This meeting is a follow-up to previous harmonisation activities conducted on 6 April 2026, to perfect the substance and ensure the conformity of the Draft Minister of Finance Regulation’s content with legal regulations.”

The activity was attended by representatives from the Coordinating Ministry for the Economy, Ministry of Finance, Ministry of State Secretariat, and ranks of the Ministry of Law, particularly the Directorate General of Legal Regulations.

One of the main points is the mechanism for examining taxpayer applications, which serves as the basis for the Director General of Taxes in determining whether a preliminary return can be granted or not.

In addition, it is regulated that if the examination results show that formal requirements are met and there is an excess tax payment, the Director General of Taxes may issue a Decision Letter for Preliminary Return of Excess Tax. Conversely, if it does not meet the provisions or there are certain conditions such as tax examination or law enforcement processes, the application may be rejected.