Towards a New, Fairer Direction in Tax Refunds

This approach aligns with global trends that position data as the primary asset in tax administration. Jakarta (ANTARA) - In recent years, tax refunds have become one of the most sensitive aspects of Indonesia’s fiscal management. On one hand, refunds represent a fundamental right of taxpayers in the self-assessment system, a mechanism that instils confidence in taxpayers to calculate, pay, and report their tax obligations independently. However, on the other hand, when refund values rise sharply without adequate controls, they can pose serious pressure on state revenues. It is here that the policy dilemma emerges: how to ensure taxpayers’ rights are fulfilled without sacrificing fiscal stability. This pressure is not merely perceptual but reflected in quite striking data. Throughout 2025, tax refund realisations reached more than Rp360 trillion, a significant increase compared to the previous year. Even in early 2026, the trend in refund applications showed acceleration faster than projections. From the perspective of the State Revenue and Expenditure Budget (APBN), this surge directly impacts net revenue, as every tax return reduces the net receipts available for development financing. Furthermore, various studies indicate that an imprecise refund system can potentially create a compliance gap. The OECD’s Tax Administration 2023 report emphasises that inaccuracies in refund granting can open doors to erroneous claims and even manipulative practices, particularly in the complex Value Added Tax (PPN) system. Developing countries, including Indonesia, tend to face higher risks due to limitations in data integration and supervisory capacity. In this context, increases in refunds are not always synonymous with improved compliance but may also reflect administrative gaps that have not yet been optimally closed. To address this, the Ministry of Finance through the Directorate General of Taxes (DJP) is refining preliminary refund policies to ensure that refund facilities are utilised more targeted and fairly through Ministerial Regulation (PMK) Number PMK-28/2026. The establishment of this policy is certainly a strategic response to maintain balance between prompt service and effective supervision, as well as part of DJP’s ongoing efforts to support a healthy and fair business climate, in line with the continuous tax reform agenda. One of the important changes in PMK-28/2026 is the reinforcement of criteria for preliminary refund recipients. Previously, the approach was somewhat broader; now the government is narrowing it based on more measurable compliance. Taxpayers entitled to priority are those with a good compliance track record, no arrears, and meeting certain administrative indicators. Preliminary refunds will still be granted to taxpayers who meet the provisions. In cases where taxpayers do not meet the preliminary refund criteria, their right to a refund of excess tax payments can still be processed through the standard refund mechanism in accordance with applicable laws and regulations. Data-based