Finance Minister Suahasil Pledges Refund for Overpaid Taxes

Finance Minister Suahasil Nazara announced plans to refund taxes to eligible business owners during a Jakarta press conference on September 18, 2026. However, he cautioned that the government would be more cautious in issuing these refunds. While emphasizing that tax refunds are a taxpayer's right, Nazara urged businesses to comply with existing regulations when using the refunds. He directed the Taxes Directorate-General to oversee the tax refund process, including informing relevant parties.

Nazara stated that the government would honor the rights of business actors and would fulfill this obligation. The tax refund is given for overpaid taxes, a response to concerns from business actors about slow disbursement. Tax Director-General Bimo Wijayanto explained that the refund process is now more cautious, with high-risk sectors being assessed based on a taxpayer compliance matrix. Refunds will be granted in line with audit standard operating procedures.

Wijayanto acknowledged that many taxpayers, especially corporations, are requesting preliminary refunds. He confirmed that these requests are also approved by the Directorate General of Taxes, provided the overpayment can be proven. There is no fixed quota for tax refund disbursement.

By the end of August 2026, tax refunds had reached Rp191.82 trillion, a 30 percent decrease compared to the same period last year. Disbursements currently consist of Rp55.79 trillion for income tax (PPh) refunds, Rp134.32 trillion for value-added tax (PPN) and luxury goods sales tax (PPnBM), and Rp1.71 trillion for land and building tax (PBB) and other taxes. Last year, the same period ended with a disbursement of Rp304.29 trillion, a 36.9 percent reduction.