High Tax Refunds Pressure Revenue, Finance Ministry Optimistic

Jakarta, 14 Oct 2025 – The Ministry of Finance said that high tax refunds are still curbing the growth of tax receipts. Deputy Finance Minister Suahasil Nazara made the statement on Tuesday, 14 Oct 2025.

Gross tax revenue realized through September 2025 reached IDR 1.6192 trillion, a 1.95 % increase over the same period last year. Net tax revenue, however, fell to IDR 1.29528 trillion, down 4.39 % as larger refunds returned money to taxpayers. Corporate income tax (PPh badan) dropped 9.4 % and VAT and luxury goods tax (PPN and PPnBM) fell 13.2 %.

The ministry expects the cash flowing back to taxpayers via refunds to improve liquidity and aid economic activity. Authorities will keep monitoring gross collections to boost future tax revenue.