BERITA TERKINI
JAKARTA, DDTCNews - Taxpayers who received substantial tax refunds (also known as restitutions) last year may need to brace themselves. Minister of Finance, Purbaya Yudhi Sadewa, has instructed his subordinates to audit taxpayers who obtained jumbo restitutions.
The issue of audits on tax refunds has become one of the focal points among DDTCNews readers over the past week.
“I am now controlling tax restitutions in the sense that I will closely scrutinize the substantial ones. I will instruct my staff to audit last year’s major refunds to ascertain whether there was any foul play,” he remarked.
Last year, tax refund disbursements reached a staggering IDR361.15 trillion. According to Purbaya, the amount has exerted significant pressure on the tax revenue structure.
“From that alone, the reduction factor in revenues is already substantial. Some refunds from 2 years prior were piled into last year, and the restitutions were not properly controlled,” he added.
It is worth noting that restitution disbursements in 2025 amounted to Rp361.15 trillion, reflecting a rise of 35.9% compared to 2024.
The Ministry of Finance recorded that the sectors contributing the largest share of refunds last year were other specialised wholesale trade, the crude palm oil (CPO) industry and coal mining.
The increase in refunds was driven by moderating CPO and coal prices, accelerated refunds and expedited audits related to applications for refunds.
On another note, discussions on the VAT refund mechanisms and the practice in Indonesia had been reviewed by DDTC Founder Danny Septriadi in the Perspective article titled ‘The Urgency of Reformulating Indonesia’s VAT Refund Mechanisms’.
In addition to information on tax refunds, several other noteworthy developments merit attention. These include the regulatory uncertainty surrounding the micro, medium and small enterprise (MSME) final income tax, the rising taxpayer win rate at the Tax Court, the proposed sugar labelling on sweetened beverages and the expansion of the tax basis as a key factor to boosting state revenues.
Individual taxpayers may continue to benefit from the MSME final income tax scheme, albeit in the absence of the underlying regulation.
The MSME final income tax applies permanently to individual taxpayers conducting business activities with annual turnover not exceeding IDR4.8 billion.
“The final process with the Ministry of Law confirms that for individuals, the scheme will indeed be extended indefinitely. Insofar as the requirements are satisfied, there will be no time limit,” claimed Directorate General of Taxes (DGT) Senior Expert Tax Instructor Timon Pieter.
The Supreme Court (Mahkamah Agung/MA in Indonesian) recorded an increase in taxpayer win rates in appeal/lawsuit cases at the Tax Court.
Of the total 15,333 cases decided by the Tax Court in 2025, as many as 7,249 rulings or 47.6%, fully granted the applications for appeals/lawsuits filed by taxpayers.
“The decisions rendered by the Tax Court on tax disputes filed throughout 2025 are as illustrated in the graph,” the Supreme Court wrote in its 2025 Annual Report.
The government is finalising plans to mandate sugar-content warning labels on packaged sweetened food and beverage products.
Coordinating Minister for Food Affairs Zulkifli Hasan stated that the introduction of high-sugar labels aligns with Gov. Reg. 1/2026 on Food Safety. According to him, such labels could serve as a reminder for the public to reduce daily sugar intake.
“We have established a team to formulate the appropriate labelling for foods and beverages with high sugar content to raise public awareness of the associated risks, as is the case with cigarettes,” he said.
Chairperson of the Association of Indonesian Tax Centers and Tax Academics (Perkumpulan Tax Center dan Akademisi Pajak Seluruh Indonesia/PERTAPSI in Indonesian), Darussalam, emphasized that tax affairs cannot be borne solely by the Directorate General of Taxes (DGT).
According to him, taxation is a shared responsibility of all elements of society, as tax revenues ultimately return to the public in the form of development financing and public service provision.
“Educational measures and the narrative are not merely the responsibility of the DGT. As I always say on various occasions, the DGT cannot be left to act alone because taxation is our collective responsibility,” he stated during the kick-off of Ngabuburit Spectaxcular 2026.
Senior Partner of DDTC Fiscal Research & Advisory (FRA), Bawono Kristiaji, views that Indonesia needs to enhance tax revenue by expanding the tax basis.
Given the government’s commitment to refrain from raising tax rates, widening the tax basis has emerged as one of the key strategies to boost revenues.
“Rather than increasing rates or imposing new taxes, it would be more effective to broaden the tax basis,” he stated in a discussion at The Forum titled Tax Reform: Finding the Right Formula to Drive Economic Momentum. (sap)
