Indonesia orders faster tax refunds for small firms and labour-intensive sectors
Finance Minister Suahasil Nazara said refunds should help businesses maintain cash flow and working capital, with textiles, footwear and electronics among the priorities.
Indonesian Finance Minister Suahasil Nazara has instructed tax director-general Bimo Wijayanto to speed up tax refunds, prioritising micro, small and medium-sized enterprises and labour-intensive businesses. He announced the instruction at a Kadin national leadership meeting in Jakarta on 30 October 2026.
Suahasil identified textiles, footwear and electronics among the sectors needing faster processing. He said the refunds could support companies’ cash flow and provide working capital for their operations.
Tax refunds reached Rp198.71 trillion by the end of September 2026, an increase of Rp6.98 trillion from the Rp191.73 trillion recorded in August.
Bimo had separately said the Directorate General of Taxes would accelerate audits, monitoring and enforcement involving taxpayers with outstanding obligations. It has prepared a data-based mapping system covering taxpayers being handled, previous action, work undertaken during the year and the effects on government revenue.
He said the acceleration would extend beyond monitoring by account representatives to tax audits and law enforcement. Pending cases that could be completed by the end of December would be expedited.
Kadin Indonesia chairman Anindya Novyan Bakrie said businesses wanted the priority sectors for refunds to be broadened in future. He welcomed the initial focus on smaller firms and labour-intensive industries as support for fiscal stability and capital for economic growth.
