Indonesian Mining Association urges review of halting tax restitutions due to potential business disruption

The Indonesian Mining Association (IMA) has voiced strong concerns regarding the government's proposed halt to tax restitutions, a move they believe could destabilize the business climate. In a statement, IMA's Executive Director, Sari Esayanti, highlighted that tax restitution is not merely a procedural matter but a fundamental right for taxpayers, essential for maintaining healthy cash flow and a cornerstone of good governance.

Esayanti emphasized that the current system, where companies fulfill their tax obligations and can reclaim overpayments or settle underpayments, functions well and fosters trust. "We believe what is currently in place is good, where companies fulfill their obligations and can get back their rights if the payment made turns out to be excessive or vice versa must pay if there is an underpayment," she stated, underscoring the importance of legal certainty in taxation for attracting and retaining investors.

The Indonesian Employers Association (Apindo) echoed these sentiments, with its Taxation Committee Chairman, Siddhi Widyaprathama, calling for a thorough review of the policy. Apindo warned that discontinuing tax restitutions could severely affect the operational liquidity of companies that rely on this mechanism to manage their finances. Both industry groups are calling for continued collaboration between the government and the business sector to ensure sustainable economic growth, stressing that any policy changes must be carefully weighed against their potential impact on businesses.

This call for reconsideration underscores a critical tension between the government's fiscal objectives and the operational realities faced by Indonesia's key industries. The mining sector, in particular, operates on significant capital investments and fluctuating commodity prices, making predictable financial mechanisms like tax restitution vital for its stability and continued contribution to the national economy.

“

Kami pikir yang berjalan saat ini sudah baik dimana Perusahaan melakukan kewajibannya dan dapat mendapatkan kembali haknya jika pembayaran yang dilakukan ternyata kelebihan ataupun sebaliknya harus membayarkan jika terdapat kurang bayar.