IMA urges review of proposed tax refund halt

By Romel S. Gurky

Indonesian Mining Association (IMA) urged the government to review a proposal to halt tax restitution, saying the move could affect business stability and operations in the mining sector.

Tax restitution allows companies to reclaim overpaid taxes and plays a role in maintaining cash flow and supporting governance, the association said.

IMA Executive Director Sari Esayanti said the current mechanism is functioning properly and should be maintained.

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“We think the current system is working well, where companies fulfill their obligations and can receive their rights if there is an overpayment, or pay if there is a shortfall,” she said, adding that legal certainty in tax refunds is important for investor confidence.

She said the government should continue working with businesses to support sustainable economic growth.

The comments come as authorities tighten controls on tax restitution disbursement, with refund claims approaching Rp300 trillion (US$ 18 billion).

Edirting by Alexander Ginting