Tax Refund Audits Become a Bogeyman for the Business World

Delays in tax refunds, factored into cash flow projections, could lead companies to hold back on capital expenditure, postpone expansions, and adjust operations.

JAKARTA, KOMPAS — The government’s efforts to close potential state revenue leakages through plans to audit tax refunds have sparked concerns among business actors. In addition to potentially disrupting liquidity, unmeasured audits could trigger legal uncertainties and disturbances to the investment climate.

The government’s focus on tax refunds has intensified alongside the swelling value of excess tax payment returns in recent years. Last year, the refund value reached Rp 361 trillion, in stark contrast to the tax revenue realisation that experienced a shortfall of Rp 271.7 trillion. Net revenue only reached Rp 1,917.6 trillion or 87.6 percent of the state budget target.

This situation has triggered suspicions of systemic leakages and inaccuracies in the refund mechanism targeting. This underpins Finance Minister Purbaya Yudhi Sadewa’s decision to involve the Financial and Development Supervisory Agency (BPKP) to audit tax refunds for the 2020–2025 period.

Unfortunately, this audit plan is not only seen as a step to strengthen state revenue but also as a bogeyman for business actors.

General Secretary of the Indonesian Young Entrepreneurs Association (Hipmi) Anggawira views tax refunds for business actors not merely as returns of excess payments but as an important part of company liquidity management.

According to him, the tax refund value in the manufacturing, exporter, construction, oil and gas, plantation, logistics, and industries reliant on imported raw materials and capital goods investment sectors is generally substantial and has been factored into cash flow projections.

“Delays in refunds can directly impact business activities,” said Anggawira when contacted by Kompas on Monday (13/4/2026).

Delays in tax refunds could lead companies to hold back on capital spending, postpone expansions, and adjust operations such as reducing working hours or holding back recruitment. This impact will be more felt by medium-sized businesses that have limited access to financing compared to large companies.

“In the current uncertain economic situation, liquidity is very important for the business world,” said Anggawira.

Hipmi views the refund audit as a legitimate and necessary step to maintain accountability and prevent misuse. However, a too repressive approach is seen as risky in creating negative perceptions, especially for compliant taxpayers.

According to Anggawira, the main concern of business actors is not the audit itself but the lack of clarity in the mechanism and the length of the process. The business world, he said, can accept additional audits as long as there are clear parameters, measurable completion times, and certainty over the process and results.

Hipmi also proposes that refund audits be conducted on a risk basis. Taxpayers with a good compliance track record and clean refund history should receive a faster process through a fast-track scheme, while in-depth examinations are focused on high-risk taxpayers.

In addition, the government is seen as needing to establish a clear service level agreement (SLA) regarding audit completion time limits. If the process exceeds the time limit without accountable reasons, there should be a compensation mechanism or automatic approval (deemed approval) to provide certainty for business actors.

Meanwhile, Chairman of the Taxation Committee of the Indonesian Employers Association (Apindo) Siddhi Widyaprathama hopes that the audit will be conducted carefully, transparently, and upholding integrity. Audits that are too repressive are feared to instead create uncertainty and damage investor confidence.

Amid global geopolitical pressures that could disrupt supply chains and economic stability, Siddhi continued, the government needs to ensure that fiscal policies align with the needs of the real sector. Legal certainty and consistent rule enforcement become important factors for business actors to remain confident in making long-term investments.

Refund audits should not become a covert instrument to pressure taxpayers into waiving their rights.

Apindo states support for supervision and audits conducted by tax authorities. However, it emphasises the importance of accountable implementation balanced with efficient services.

“By maintaining a balance between fiscal functions and real sector liquidity, we ensure the economic engine runs optimally,” said Siddhi.

Vice Chairman of the Industry Sector of the Indonesian Chamber of Commerce and Industry (Kadin) Saleh Husin added that amid the unstable global economic conditions, the business world needs certainty and peace in conducting business.

“Do not let policies emerge that instead create uncertainty and impact investment interest,” he said.

Senior Economist at Paramadina University, Wijayanto Samirin, reminds the government that refund audits should not become a covert instrument to pressure taxpayers into waiving their rights.

“If that happens, the investment climate will worsen. The business world will adopt a wait-and-see approach and delay business expansions. We seem to be sacrificing long-term interests to cover short-term fiscal deficits,” he said.

Wijayanto assesses that the current policy dilemma is not simple. On one hand, potential refund leakages need to be closed. On the other hand, disruptions to business liquidity also carry significant risks. Therefore, legal certainty and clear regulations become key.

He also sees this audit step as an indication of fiscal pressure, particularly from the government’s cash flow side. “The message emerging to the public is less conducive. The government appears to be seeking shortcuts,” he said.