Korean Businesses Raise Concerns Over Slow VAT Refund Process in Indonesia

Meeting Between Tax Officials Addresses Key Issues

South Korean businesses operating in Indonesia have voiced their concerns regarding the slow processing of Value Added Tax (VAT) refunds. This issue was prominently raised during a meeting between Lim Kwanghyun, Commissioner of Korea's National Tax Service (NTS), and Bimo Wijayanto, Director General of Indonesia's Directorate General of Taxes (DJP). The meeting, held in Jakarta, highlighted the challenges faced by Korean companies in navigating Indonesia's tax landscape.

Key Issues and Discussions

The slow VAT refund process was identified as a major concern for Korean businesses. Lim Kwanghyun requested the support of DJP in addressing various tax-related issues encountered by Korean companies operating in Indonesia. Bimo Wijayanto, representing DJP, engaged in discussions aimed at resolving these challenges and improving the overall tax environment for foreign investors.

Implications for Business Environment

The concerns raised by Korean businesses underscore the need for Indonesia to improve its tax refund processes to attract and retain foreign investment. A more efficient VAT refund system could enhance Indonesia's competitiveness as a destination for foreign direct investment, particularly from Korean companies. The discussions between the NTS and DJP signify a step towards addressing these issues and potentially improving the business environment for international firms operating in Indonesia.