Refunds Weigh on Revenue, Government to Review Regulations
JAKARTA. The surge in tax refunds, which reached IDR 361 trillion throughout 2025, has become a serious concern for the government. The figure is considered to have affected the limited fiscal space and contributed to the pressure on last year’s state revenue realization.
Minister of Finance Purbaya Yudhi Sadewa previously stated that the amount of tax overpayment refunds was exceptionally large.
Purbaya assessed that the spike in refunds was one of the factors behind the 2025 tax revenue realization reaching only IDR 1,917.6 trillion, or 87.6% of the State Budget target. He also emphasized that the government would evaluate the existing mechanism.
“Later, I will investigate, in line with the input from Mr. Misbakhun. We will look at what a good refund strategy should be. So far it seems almost automatic, with no control from the DGT to check, it feels too easy. For the coal industry, when we calculate the VAT, I feel like we are ‘subsidizing’ it, so I try to offset it through coal export duties,” he said during a meeting with Commission XI of the House of Representatives last week.
Regulations Under Review, Taxpayer Rights Still Guaranteed
On the other hand, the Directorate General of Economic and Fiscal Strategy (DJSEF) of the Ministry of Finance assured that the government will continue to fulfill taxpayers’ rights. Director General of DJSEF, Febrio Nathan Kacaribu, emphasized that refunds will still be paid if they comply with the regulations. However, the government is studying the possibility of regulatory gaps that may have contributed to the surge in tax refunds.
“That is what we are preparing. From our perspective, it is indeed a right within the two years. But we still need to assess whether it should be that large. That is why we are reviewing the regulations together with Mr. Bimo’s office (Director General of Taxes), the DGT, what kind of regulatory framework would be appropriate?” said Febrio at the Parliament Complex, Senayan, Monday (9/2), as quoted by Bisnis.com.
According to Febrio, tax relaxation policies granted during the COVID-19 pandemic also need to be re-evaluated. “During the COVID period, there were many relaxations. The question now is whether there are policies that need adjustment so governance and oversight can be improved,” he explained.
The review of refund regulations comes amid an ambitious 2026 tax revenue target of IDR 2,357.7 trillion, or about 7% growth from the 2025 State Budget target. Despite limited fiscal space, the government remains optimistic. In January 2026, tax revenue grew by 30.8% year-on-year to IDR 116.2 trillion.
“We want to send a signal that what some say is impossible may still be achievable. Based on rough calculations, the opportunity is there. I don’t know, I will have to work hard to achieve it. But the probability, the opportunity, exists,” said Purbaya. (KEN)
