Criticized for Being Slow, the U.S. Highlights the Refund Process in Indonesia

JAKARTA – The tax refund process in Indonesia has been deemed slow by U.S. companies, particularly regarding refunds on overpaid import taxes.

According to kontan.co.id, this view was expressed by the United States Trade Representative (USTR) in its report titled 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers.

The NTE report is an annual report that is routinely submitted by the USTR to the U.S. President and Congress no later than March 31 each year.

In the report released on March 31, 2025, the USTR highlighted that the import tax refund process in Indonesia can take several years. Furthermore, the process also imposes significant administrative burdens.

Refund Facilities

For your information, the government had previously introduced accelerated refund facilities for requests under IDR 100 million. Under this facility, each request is not subject to inspection.

The government also mentioned that the refund process could be easier with the Coretax system upgrade.

The USTR report also highlighted other aspects of Indonesia's tax system, such as the audit process. The audit process conducted by the Directorate General of Taxes (DGT) was considered non-transparent and complicated.

Additionally, U.S. companies are concerned about the high penalties imposed for administrative errors and the lengthy process of tax dispute resolution. (ASP/KEN)