These Are the Businesspeople Threatened with No Tax Refund from the State
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has admitted to being annoyed with the tax restitution policy that is causing a deficit in state revenues. In 2025, the realisation of restitution or tax refunds from the government to businesspeople reached Rp 361.15 trillion, an increase of 35.9% from the previous year.
From that realisation, the sector receiving the most of this facility is coal. According to Purbaya, coal mining companies pay tax obligations starting from income tax (PPh) to royalties. However, these taxes are withdrawn back through restitution, resulting in negative government receipts.
“(The taxes) are withdrawn in restitution, so I receive negative. So I’m subsidising those already rich coal companies. Do you think that’s fair?” said Purbaya during a press conference at the Ministry of Finance office in Central Jakarta, quoted on Thursday (9/4/2026).
In fact, in accordance with Article 3 Paragraph 3 of the 1945 Constitution - the earth, water, and natural resources contained therein are controlled by the state and used for the greatest prosperity of the people - all natural resources should be used for the people’s interests.
“If not, the land is taken, the earth is taken, I (the government) also pay (restitution),” he emphasised.
Therefore, Purbaya is pushing for the implementation of export duties (BK) on coal exports, which have not been imposed so far. Purbaya realises there are many protests from coal businesspeople. Nevertheless, it must be recognised that the state has been suffering losses from coal activities.
This former Danareksa economist believes that the restitution policy should benefit all parties. Contributions from the coal sector will also be used for development and public welfare.
“We’re looking for what’s optimal for everyone, for businesspeople as well as for the state, for the people too. The taxes aren’t for me to eat and drink, but earlier I said eat and drink? We use them for programmes that can prosper the people. For example, the disaster in Aceh, where does the money come from? Education programmes from where? Something like that,” he explained.
Due to the large restitution from this sector, Purbaya will collaborate with the Financial and Development Supervisory Agency (BPKP) as an external party for auditing.
“I’m internal, I focus on 2025, to external, that’s BPKP from 2020 to 2025. So I want to see where all this is,” he said.
This audit is targeted to be completed in one to two months ahead, so the results will be finished and can be reported at the beginning of the second quarter of 2026.
“I asked BPKP. So one month two months. But they said it’s ongoing. I’ll check again,” said Purbaya.
Purbaya emphasised that this audit does not mean the government will eliminate or abolish restitution. Purbaya only wants this tax facility to be truly utilised by the right parties in the right way.
So, Why Is Coal Restitution So Large?
Purbaya previously revealed the reason why the coal mining sector can claim large restitutions. According to him, this is related to the VAT provisions in the Job Creation Law.
The large Value Added Tax (VAT) restitution for coal is caused by the change in coal’s status to a Taxable Good (BKP) based on the Job Creation Law. As a result, this allows companies to credit input taxes on exports.
This makes the state “deficit” because the amount of restitution paid exceeds tax receipts, royalties, and non-tax state revenues from that sector.
“That’s because of the Job Creation Law, so the sudden change there so they can restitute and the implementation of the restitution is excessive,” he said.