February 4, 2026 | 05:04 pm
TEMPO.CO, Jakarta - Minister of Finance Purbaya Yudhi Sadewa reported that tax refunds in 2025 soared. Last year, tax refunds increased by 35.9 percent, reaching Rp361.15 trillion, up from Rp265.67 trillion in 2024.
Corporate income tax (PPh) and domestic value-added tax (VAT) were the main contributors. "Throughout 2025, tax refunds increased significantly, especially in Corporate Income Tax and Domestic VAT, which contributed to a significant increase in tax refunds at the beginning of the year," said Purbaya during a meeting with the House of Commission XI at the parliament complex in Senayan, Jakarta, on Wednesday, February 4, 2026.
A tax refund is the return of excess tax payments made by taxpayers. This is because the amount of tax owed is smaller than the amount of tax paid or collected. Purbaya explained that the sector that contributes the most to tax refunds is the large, specialized trade sector, including fuel industries such as palm oil and coal mining.
In his presentation, he explained that the increase in tax refunds was caused by the moderation of leading commodity prices, such as those of palm oil and coal. These prices have impacted profitability. Other reasons include the relaxation of refund requests and the acceleration of refunds. Furthermore, the examination completion period has been accelerated.
The Ministry of Finance reported that throughout 2025, Indonesia's net tax revenue reached Rp1,917.6 trillion or 87.6 percent of the target. Tax revenue decreased in the first half of 2025 due to moderating commodity prices and refunds. However, it began to improve in the second half of the year.
Previously, the Director General of Taxes at the Ministry of Finance, Bimo Wijayanto, mentioned the increase in tax refunds as the reason for the decrease in net tax revenue in 2025. According to Bimo, Large refunds of domestic VAT and corporate income tax led to a significant net decrease in the collection of these two types of taxes.
Read: Paying Old Debts with New Debts
Click here to get the latest news updates from Tempo on Google News
Retailers Seek Tax Refunds to Attract Foreign Tourists During Indonesia's Great Sale
21 November 2025
Hippindo hopes that promoting the tax refund program will encourage foreign tourists to shop in Indonesia.
