Key facts
- Indonesia's new finance minister, Suahasil Nazara, pledged to refund taxpayers who have overpaid.
- The new procedures for preliminary tax refunds, outlined in Minister of Finance Regulation No. 28 of 2026 (PMK-28), came into effect on May 1, 2026.
- PMK-28 replaces previous rules and allows for refunds through an administrative review for certain taxpayers.
- Eligible taxpayers include individual taxpayers (non-business and business/self-employed), corporate taxpayers, and taxable entrepreneurs.
- The processing time for refunds is up to 15 working days for individual taxpayers and up to 1 month for corporate taxpayers and VAT cases.
Indonesia's new finance minister, Suahasil Nazara, has pledged to refund taxpayers who have overpaid, aligning with new regulations aimed at streamlining the process. Nazara, who took office this week, stated that refunds would be issued in accordance with regulations. His predecessor, Purbaya Yudhi Sadewa, had reportedly caused delays by requesting more audits of tax refunds.
These changes are part of Minister of Finance Regulation No. 28 of 2026 (PMK-28), which became effective on May 1, 2026. This regulation replaces previous rules and introduces stricter provisions for preliminary tax refunds, focusing on an administrative review rather than a full audit for eligible taxpayers. The goal is to balance taxpayer rights and obligations while ensuring refunds are granted in a more targeted manner.
PMK-28 outlines specific categories of taxpayers eligible for these accelerated refunds, including individual taxpayers (non-business and business/self-employed), corporate taxpayers with annual revenue up to IDR 50 billion and overpayments not exceeding IDR 1 billion, and taxable entrepreneurs (PKP) with total taxable supplies up to IDR 4.2 billion and overpayments up to IDR 1 billion. The regulation also sets clear processing timelines: up to 15 working days for individual taxpayers and up to one month for corporate taxpayers and VAT cases. If no decision is issued within these periods, the application is automatically approved. Taxpayers whose previous designations are revoked may reapply between June 1 and June 10, 2026.