Suahasil Eases Tax Refunds for SMEs and Labour-Intensive Industries

JAKARTA, DDTCNews - Minister of Finance, Suahasil Nazaraha, has instructed the Directorate General of Taxes (DGT) to accelerate the processing of tax refunds for taxpayers requiring cash flow support, particularly labour-intensive industries and small and medium-sized enterprises (SMEs).

Suahasil affirmed that a tax refund is a taxpayer's right. Accordingly, the DGT will process tax overpayment reimbursements as swiftly as possible, especially for business sectors requiring liquidity to sustain their operations.

"It is true that there is refund management, but I have given instructions to the Director General of Taxes that a tax refund is the right of the taxpayer. For industries that genuinely require cash flow, labour-intensive industries and SME, it shall be granted as quickly as possible, and the rights of these taxpayers shall be processed so that payment can be made," he said at the State Budget (APBN) press conference on Friday (9/10/2026).

Suahasil also stated that the ease of refund management has been implemented by DGT employees. This policy is expected to accelerate the disbursement of tax refunds for eligible taxpayers.

Where a taxpayer genuinely has a tax overpayment and is entitled to a refund, that refund will be granted without delay.

"We also understand that we will ease refund management. Our colleagues at the Directorate General of Taxes have begun to implement this easing," he said.

The issue of tax refunds remains a concern for taxpayers, particularly entrepreneurs. Tax refunds are needed to maintain corporate cash flow, including to finance production activities, fulfil operational requirements and fulfil obligations to workers and suppliers.

For labour-intensive industries, smooth cash flow is also vital to sustain business activities involving a large workforce. For SMEs, faster refund disbursement is expected to help maintain business liquidity.

For information, the realisation of tax refunds through the end of September 2026 reached IDR198.71 trillion, a decline of 38.7% compared with the same period last year. The largest refunds came from value added tax (VAT) and sales tax on luxury goods at IDR137.79 trillion, followed by income tax refunds of IDR59.08 trillion and refunds from other tax types totalling IDR1.84 trillion.

On the other hand, the government recorded tax revenue of IDR1,607.6 trillion for the period January to September 2026. This realisation is equivalent to 68.2% of the 2026 state budget tax revenue target of IDR2,357.7 trillion. (dik)