On Tax Refunds, Suahasil: Taxpayer Rights Must Be Honoured

JAKARTA, DDTCNews - Minister of Finance Suahasil Nazara's assertion about the disbursement of tax refunds attracted public attention this week.

According to Suahasil, the Directorate General of Taxes (DGT) carries out refund management based on regulations by considering the level of compliance of taxpayers applying for refunds.

"I wish to convey that the management of refunds is implemented pursuant to the existing provisions. The DGT has implemented the management of refunds pursuant to the provisions, but we do require compliance," he said.

This statement was delivered by Suahasil amidst entrepreneurs' attention to the refund disbursement process. The Indonesian Chamber of Commerce and Industry (Kamar Dagang dan Industri/Kadin in Indonesian) previously assessed that the smooth disbursement of refunds was closely related to cash flow and the sustainability of business activities.

Suahasil explained that the compliance aspect is one of the considerations in the management of refunds. According to him, tax refunds will be given if it is indeed the taxpayer's right.

"If it is the right of entrepreneurs, it will definitely be given. I instructed the director general of taxes to handle the management of refunds, including communicating the management of refunds," he said.

Director General of Taxes, Bimo Wijayanto, also emphasized that tax refunds will be managed prudently by considering compliance and the level of taxpayer’s risk.

" All taxpayers that are identified as being from high-risk sectors, based on the taxpayer compliance matrix, will indeed be subject to audits according to the audit SOP," he remarked.

DGT recorded that the realisation of tax refunds until the end of August 2026 reached IDR191.82 trillion, down 37% from the same period last year.

The realisation of refunds consists of income tax refunds of IDR55.79 trillion, VAT and STLGs amounting to IDR134.32 trillion and other taxes of IDR1.71 trillion.

In addition to tax refunds, a number of other tax issues have also attracted the attention of readers in the past week. These include the inauguration of a new minister of finance and tax realisation.

Here is a full review of the tax articles.

Suahasil Replaces Purbaya as Minister of Finance

President Prabowo Subianto has officially appointed and inaugurated Suahasil Nazara as the Minister of Finance in the Red and White Cabinet for the remainder of the 2024–2029 term of office, replacing Purbaya Yudhi Sadewa.

Suahasil affirmed his commitment to continuing the duties and roles of the Ministry of Finance in maintaining the stability and sustainability of the state finances. In the process, he will coordinate with the former leaders before carrying out the handover of positions.

"We must definitely coordinate the transition well, and we will continue the work of the Ministry of Finance as usual," he said.

Tax Revenue Hits IDR1,409 Trillion, Up 24.1%

Realised tax revenue to the end of August 2026 reached IDR1,409 trillion, or 59.8% of the target set in the 2026 state budget of IDR2,357.7 trillion. The realised tax revenue grew by 24.1% compared with the same period last year.

In further detail, realised non-oil-and-gas income tax revenue reached IDR722.2 trillion. Meanwhile, realised value added tax (VAT) and sales tax on luxury goods (STLGs) revenue amounted to IDR591.5 trillion. Further, realised oil-and-gas income tax revenue reached IDR39 trillion, up 70.6%, whereas land and building tax (L&B Tax) and other taxes stood at IDR56.4 trillion,

"Our tax revenue continues to grow in line with ongoing increases in economic activity. Demand for cement, electricity, cars and motorcycles is growing. This implies economic activity is growing," said Suahasil.

DGT: Art. 22 Income Tax Collection by Marketplaces Starts 1 November

DGT akan menerapkan pemungutan pajak penghasilan (PPh) Pasal 22 oleh penyedia marketplace sebagaimana diatur dalam PMK 37/2025 mulai 1 November 2026.

Bimo said the policy for collection of Article 22 Income Tax by marketplace operators has been deferred until 31 October 2026. Once that deferral period ends, he is confident that marketplace operators will be ready to implement the policy.

"They are actually already ready, but there is a deferral until 31 October. After that, God willing, we will promptly activate the regulation and they are ready for implementation," he remarked.

MUI Again Calls for Zakat to Become a Tax Credit

The Indonesian Ulema Council (Majelis Ulama Indonesia/MUI in Indonesian) has once again urged the government to integrate zakat into tax policy by making it a tax credit.

Ketua Badan Pengurus Dewan Syariah Nasional (DSN) MUI Cholil Nafis mengatakan perlakuan zakat sebagai kredit pajak akan memberikan insentif ganda kepada masyarakat, yakni dorongan untuk memenuhi kewajiban keagamaan sekaligus kewajiban sebagai warga negara. "Kita berharap zakat dijadikan sebagai pajak tax credit sehingga orang membayar zakat ada motivasi keagamaan, ada motivasi kenegaraan," ujarnya.

Chairperson of the Board of Trustees of the MUI National Sharia Council (Dewan Syariah Nasional/DSN in Indonesian), Cholil Nafis, stated that making zakat a tax credit would provide a dual incentive to the public, namely encouragement to fulfil religious obligations as well as obligations as citizens. "We hope that zakat will be made a tax credit, thus, people paying zakat have both a religious motivation and a civic motivation," he remarked.

Under the currently applicable provisions, zakat does not yet function as a tax credit that directly reduces the amount of tax payable. MoF Reg. 114/2025 provides that zakat or compulsory religious donations may be deducted from gross income provided that certain requirements are satisfied.

State Finance Draft Law Proposes Revised 3% Budget Deficit Ceiling

During deliberations on the State Finance Draft Law, Chairperson of the House of Representatives Commission XI, Mukhamad Misbakhun, has raised the option of revising the state budget (anggaran penerimaan dan belanja negara/APBN in Indonesian) deficit ceiling of 3% of GDP.

Misbakhun highlighted that the state budget deficit ceiling has hitherto been stipulated only in the elucidation section of Law 17/2003 on State Finances, not in the main body of Article 12 of that law.

" People say the deficit is 3%, and when I ask which article stipulates this, no one can cite it. The deficit is not a legal norm; the deficit does not appear in the normative body and the debt ratio ceiling of 60% of the GDP does not appear there either," he claimed. (dik)