The Jakarta Post
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsBusinesses fear delays from special tax refund audits
The 2027 State Budget Law passed Tuesday gives the finance minister authority to conduct examinations and special audits of state revenue collection, which companies worry may hold up tax refunds and hurt their cash flow.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Set as preferred source
Two tug boats pull a cargo ship carrying containers on Jan. 20 at Batu Ampar Port in Batam, Riau Islands. (Courtesy of Batam Customs and Excise Office/-)
B
usinesses have expressed concern that a new special audit authority at the top level of the Finance Ministry could hold up corporate tax refunds, thereby squeezing their cash flow and potentially impacting operations.
The concern follows Tuesday’s passage of the 2027 State Budget Law, which gives the finance minister authority to conduct examinations and special audits of state revenues, including refunds for excess tax payments.
Under Article 37, the government can conduct such examinations through a joint audit mechanism.
As this comes in addition to the existing authorities through the Tax Directorate General, it signals a more aggressive push by the government to close tax loopholes, and businesses worry it could extend approval times.
Detailed rules on how special audits and refunds will be handled are to be set out in a Finance Ministry regulation that has yet to be issued.
Read also: Finance minister promises tax refunds for eligible businesses
“It's not that we [reject it], but this is a matter of time. It has a major impact on companies' cash flow,” the Indonesian Employers Association (Apindo) Shinta Kamdani told reporters on Wednesday.
