2027 State Budget Draft Law Allows Special Tax Refund Audits
JAKARTA, DDTCNews - The government and the House of Representatives have agreed to expand the scope of state revenue audits under Article 37 of the 2027 State Budget Draft Law. This topic is among the reviews featured in the national media today, Monday (28/9/2026).
During the Level 1 deliberations on the 2027 State Budget Draft Law at the House Budget Committee (Badan Anggaran/Banggar in Indonesian), state revenue audits now also encompass special audits conducted in the context of tax refunds.
"In the context of the optimisation of state revenues, the minister of finance is authorised to conduct audits and/or state revenue audits, including audits and/or special audits in the context of tax refunds," said Deputy Chairperson of the House Budget Committee, Wihadi Wiyanto, reading out Article 37 paragraph (1) of the 2027 State Budget Draft Law .
Further provisions on state revenue audits, including the procedures for tax refunds under audits and special audits, will be governed by a minister of finance regulation (MoF Reg.). This delegation of authority is set out in Article 37 paragraph (2) of the 2027 State Budget Draft Law.
As a comparable reference, the 2026 State Budget Law also authorises the minister of finance to conduct state revenue audits. However, that provision does not specifically mention special audits in the context of tax refunds.
Further, the elucidatory paragraph to Article 37 paragraphs (1) and (2) of the 2027 State Budget Draft Law affirms that state revenue audits may be conducted through a joint audit.
"This is the working committee's report on the 2027 State Budget Draft Law, to be received and approved as the conclusion of the working meeting between the DPR Banggar, the government and Bank Indonesia (BI) in the context of the Level 1 deliberations on the 2027 State Budget Draft Law and its accompanying financial note," said Wihadi.
For information, a joint audit is one component of a joint programme aimed at improving tax compliance. The joint programme is listed as one of the general tax policy measures in the financial note of the 2027 draft state budget.
In addition to a joint audit, the joint programme also encompasses joint analysis, joint collection, joint investigation and joint intelligence.
In respect of tax refunds, the government has recorded a decline in refund disbursements compared with the previous year. The total value of refunds up to August 2026 reached IDR191.82 trillion, a decrease of 37% compared with the previous year.
In addition to the above topic, there are reviews covering the role of the Directorate General of Taxes (DGT) in the guidance and supervision of tax consultants going forward. There are also discussions relating to the carbon tax, taxpayer follow-up on tax bills, the tax court and other matters.
Below is a full review of the tax-related articles.
Simplified Refunds for Export-Oriented Activities
On the subject of tax refunds, Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that President Prabowo Subianto has instructed his officials to resolve VAT refunds in the export-oriented sector.
"Export-oriented businesses typically request refunds. The aim is for this refund process not to take too l," he said.
Airlangga noted that the refund policy is currently being discussed by his office together with the Ministry of Finance (MoF). Several industries will subsequently be granted facilitated refund facilities in accordance with President Prabowo's directives. (DDTCNews)
MoF Reveals Why Carbon Tax Has Yet to Be Implemented
The Ministry of Finance (MoF) has yet to implement the carbon tax, despite its introduction in 2021 through the Harmonisation of Tax Regulations (Harmonisasi Peraturan Perpajakan/HPP in Indonesian) Law.
Senior Policy Analyst at the MoF Directorate General of Economic and Fiscal Strategy (Direktorat Jenderal Strategi Ekonomi dan Fiskal/DJSEF in Indonesian), Hadi Setiawan, stated that the government remains cautious in determining the timing and mechanism for implementing the carbon tax.
He noted that a number of strategic considerations must be taken into account before the instrument is enacted. One of these is Indonesia's emissions reduction achievement. Up to 2024, Indonesia's realised emissions reductions have exceeded the established targets. (Kontan)
DGT Urges Taxpayers to Promptly Follow Up on Tax Bills
The Directorate General of Taxes (DGT) is urging taxpayers to promptly follow up on outstanding tax bills, including notices of tax collection (surat tagihan pajak/STP in Indonesian) and not to wait until the matter escalates to the active collection stage.
DGT Senior Tax Instructor, Gede Suarnaya, stated that taxpayers should first understand the reason for the issuance of an STP, cross-check it against their own data and then promptly fulfil their obligations if the tax bill is found to be correct.
"Our biggest mistake sometimes is not the emergence of the STP itself, but also when the STP is ignored," he said. (DDTCNews)
Tax Court Moves to Supreme Court; MoF to Continue IT Support
The MoF will continue to participate in the operation of the IT system at the Tax Court, even though the court is officially transferring to the Supreme Court (Mahkamah Agung/MA in Indonesian) next year.
Substitute Registrar of the Tax Court Secretariat, Aditya Agung Priyo Nugroho, stated that the MoF's continued involvement is necessary given that aligning the Tax Court's IT system with that of the Supreme Court will require approximately 5 years.
"There are differences between the systems at the MA and the Tax Court. These need to be bridged, and a transition is required. We have already spoken with the MA's IT team; it may take around 5 years to align the current Tax Court system with the MA's system," he said. (DDTCNews)
DGT's Role in the Guidance and Supervision of Tax Consultants
The MoF has affirmed that the DGT retains a role in the guidance and supervision of tax consultants, even though MoF Reg. 55/2026 provides that such guidance and supervision is to be implemented by the Directorate General of Financial Sector Stability and Development (Direktorat Jenderal Stabilitas dan Pengembangan Sektor Keuangan/DJSPSK in Indonesian).
"The DGT continues to play a role in guidance and supervision through coordination mechanisms and joint audits; however, the primary regulator responsible for issuing licences, conducting professional supervision and imposing administrative penalties is the Ministry of Finance unit responsible for financial professions, according to the mandate of the P2SK Law," the MoF stated.
Accordingly, the DGT exclusively carries out tax administrative functions, whilst professional supervision functions are performed by the Directorate of Financial Profession Guidance and Supervision (Pembinaan dan Pengawasan Profesi Keuangan/PPPK in Indonesian) within the DJSPSK, which serves as the regulator for financial professions. (DDTCNews)
Cross-Border Digital Transaction Tax Collection Enters Final Stage
The government is executing the final preparatory stage of the tax collection system for cross-border digital transactions (sistem pemungutan pajak transaksi digital luar negeri/SPP TDLN in Indonesian). Concurrently, the implementing regulations for the SPP TDLN, involving the state-owned enterprise subsidiary PT Jalin Pembayaran Nusantara, have finally been released to the public.
The DGT stated that the SPP TDLN is currently in its final preparatory stage prior to full operation. Initially, the system had been targeted to go live on 10 September.
"A brief update: the system is currently in the final stage of go-live preparation," said Inge Diana Rismawanti, Director of Tax Dissemination, Service and Public Relations at the DGT of the MoF. (bisnis.com)