Indonesia’s Finance Ministry will accelerate tax refunds for eligible taxpayers while applying tighter scrutiny to high-risk sectors, after refunds fell 30% to IDR 191.82 trillion by the end of August 2026.
Indonesia’s newly appointed finance minister, Suahasil Nazara, pledged on 18 September 2026 to accelerate tax refund disbursements for eligible taxpayers. Speaking at the monthly State Budget press conference in Jakarta, Nazara confirmed that overpaid taxes represent a legitimate right for business owners and will be returned promptly.
The Directorate General of Taxes (DGT) will manage the refund procedure under a more cautious framework. High-risk sectors will now face tighter scrutiny based on taxpayer compliance assessments. All refunds must follow established audit standards and comply with existing regulations.
The agency will continue processing preliminary refund requests from corporate entities. No quota limits apply to disbursements, meaning eligible claims will be approved as long as overpayment can be verified through documentation.
Indonesia’s tax refunds fell to IDR 191.82 trillion by the end of August 2026, down 30% from IDR 304.29 trillion in the same period of 2025. Over the two years, total refunds declined by approximately 36.9%. Tax refunds cover income tax, value-added tax (VAT), luxury goods sales tax, land and building tax (PBB), and other taxes.
