Indonesia's Tax Refund Policy Under Review Following Surge in Claims

Significant Increase in Tax Restitution

The Indonesian Ministry of Finance is conducting a comprehensive review of its current tax refund policies due to a significant 35.5% increase in tax restitution claims during 2025. This substantial rise has prompted the government to assess the financial implications and potential adjustments to existing regulations.

Balancing Taxpayer Rights and State Revenue

Director General of Economic and Fiscal Strategy, Febrio Nathan Kacaribu, emphasized that tax restitution is a protected right for taxpayers under current legislation. However, he noted that the government will continue to evaluate these policies periodically to determine their impact on state revenue. The review aims to strike a balance between honoring taxpayer rights and maintaining fiscal sustainability.

Implications for Tax Policy and Revenue

The Ministry's review will likely focus on several key areas: the current restitution process, potential policy adjustments, and the overall impact on Indonesia's fiscal landscape. As the government navigates these considerations, it must maintain a delicate balance between encouraging tax compliance and safeguarding national revenue streams.