Government Prepares VAT Refund Facilities for Exporters

JAKARTA, DDTCNews - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has stated that President Prabowo Subianto has instructed his officials to resolve VAT refunds in the export-oriented sector.

VAT refunds are a key requirement for export-oriented entrepreneurs. As is well known, exporters potentially hold VAT overpayments given that exports of taxable goods and services are subject to VAT at 0%.

"Export-oriented businesses typically request refunds. The aim is for this refund process not to take too long," said Airlangga, as quoted on Friday (25/9/2026).

Airlangga said the refund policy is currently being discussed by his office together with the Ministry of Finance (MoF). Several industries will subsequently be granted facilities in line with President Prabowo's directives.

"We are still reviewing this. In the near future, several industries will be given facilities in accordance with the President's directives," said Airlangga.

For information, a refund is a mechanism available to taxpayers with a tax overpayment, whether in respect of income tax or VAT. Through the end of August, realised refunds had reached only IDR191.82 trillion, a decline of 37% compared with the previous year.

The refunds comprised income tax refunds of IDR55.79 trillion, VAT and sales tax on luxury goods (STLGs) refunds of IDR134.32 trillion and other tax refunds of IDR1.71 trillion.

Minister of Finance, Suahasil Nazara, stated that the Directorate General of Taxes (DGT) has carried out refund management pursuant to the applicable provisions, whilst also taking taxpayer compliance into consideration.

"Our colleagues at the DGT are administering refund management pursuant to the provisions; however, we do require compliance. We require compliance from all economic actors so that refunds are genuinely utilised pursuant to the existing rules," said Suahasil last week. (dik)