Indonesian Political, Business & Finance News

Rp361 Trillion Tax Refund: DPR Calls for Halt to Payments to Businesspeople

| Source: CNBC Translated from Indonesian | Finance
Rp361 Trillion Tax Refund: DPR Calls for Halt to Payments to Businesspeople
Image: CNBC

The government is tightening its policy on tax refunds, or restitusi, which involves reimbursing overpaid taxes collected from corporate taxpayers to the state. This step is supported by the DPR through Commission XI, which works with the Ministry of Finance.

Commission XI Chairman Mukhamad Misbakhun stated that in a potentially crisis-ridden situation, such as the current one triggered by global energy price fluctuations due to the war in the Middle East, the tax refund policy could be temporarily halted to support the government’s fiscal resilience.

“We could secure revenue of up to Rp500 trillion just by withholding refunds. Or, if necessary, we can state that refunds will not be paid,” said Misbakhun on the CNBC Indonesia programme Squawk Box on Wednesday (8/4/2026).

Misbakhun assured that the DPR could even use various regulatory instruments to support the temporary suspension of refunds, particularly through the enactment of laws. At the technical level, political support could also be provided by the DPR if a ministerial regulation on the refund suspension policy needs to be issued.

“If the backing is through a law, we can do it via a law. If the backing is at the ministerial level, we can issue a different ministerial regulation,” said Misbakhun.

He claimed that in a high-pressure situation potentially pushing the fiscal deficit to 2.88% of GDP this year from the 2.68% target, businesspeople would essentially be willing to delay the refund of overpaid taxes. The aim is solely to maintain an economic growth climate.

“Of course, it must be discussed. With all stakeholders, with the businesspeople. Because in a situation like this, togetherness, mutual cooperation, and mutual understanding of the situation as national solidarity are very important,” explained Misbakhun.

“Businesspeople certainly won’t think only of themselves as long as they can pay their employees, pay taxes, earn profits, and sustain their businesses. I’m confident they won’t mind contributing to the nation and state,” he added.

Finance Minister Purbaya Yudhi Sadewa had previously highlighted the massive value of tax refund realisations in 2025, exceeding Rp361.5 trillion. This amount increased by 35.9% compared to 2024.

He admitted to finding a lack of clarity in the overpaid tax refund reports, triggering suspicions of potential leakages.

“Last year’s refunds were enormous, sir. 360 trillion. And the reports to me weren’t very clear. Month by month, how it was. Now it’s starting to be monitored. I suspect there’s a bit of leakage there,” said Purbaya during a Working Meeting with DPR RI Commission XI on Monday (6/4/2026).

Purbaya revealed that his side is conducting a thorough audit of refund disbursements, particularly related to resources and other sectors. The audit will cover the period from 2020 to 2025.

Therefore, 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. So I want to see where exactly these things are,” he said.

He explained that the audit is being conducted to identify vulnerable points in the refund system, while ensuring that disbursements remain targeted.

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

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