Over Tax Refunds, Purbaya Threatens Reassignment and Dismissal of Tax Officials

JAKARTA. Minister of Finance Purbaya Yudhi Sadewa stated that he would transfer or relieve from duty any tax officials who deliberately grant refunds in violation of the rules.

This statement was made as part of efforts to curb abuse of authority in the tax refund process. For context, a tax refund refers to the return of excess tax payments made by taxpayers.

However, such measures will be preceded by an investigation. Investigations will be conducted if the amount of refunds issued by a particular tax office is deemed excessively high.

“So, if there is a tax office where refunds are too high and our investigation finds issues, I will immediately reassign the head of that office,” Purbaya said on Friday (24/4).

Refunds Exceeding Revenue

Purbaya hopes that refund payments will be carried out in accordance with regulations and principles of fairness. In some cases, he noted that the amount of tax paid by taxpayers is actually lower than the refunds they receive.

In another case within the coal industry, some companies reportedly received refunds even before exports were carried out. According to Purbaya, this practice needs to be controlled.

Surge in Refunds

According to data from the Directorate General of Taxes (DGT), the total amount of refunds paid in 2025 jumped by 35.9% compared to 2024.

The total refunds in 2025 reached IDR 361.14 trillion, compared to IDR 265.67 trillion during the same period in 2024.

Several factors contributed to this increase, including the moderation of commodity prices in 2023, which resulted in companies overpaying taxes in the 2024 tax year.

Another factor is the high number of preliminary refund requests. Therefore, the DGT will tighten supervision over the issuance of tax refunds. (KEN)