Jakarta. Indonesian companies hope that newly appointed Finance Minister Suahasil Nazara will not hold back on the tax refund payouts, while also avoiding policies that can cause a hike in the costs of doing business. 

Ex-finance tsar Purbaya Yudhi Sadewa officially passed the baton to Suahasil on Tuesday following a surprise cabinet shake-up. Suahasil had been the deputy minister since 2019, hence bringing familiarity to the market and businesses. Shinta Kamdani, who helms the business lobby Indonesian Employers Association (APINDO), described Suahasil as a figure of “continuity”. However, businesses still have a wishlist that they hope Suahasil would keep in mind.

“It’s important for the government to maintain the already well-kept fiscal policies. Please don't add the costs of doing business. Basically, [avoid] costs that will hinder our operations,” Shinta told the press on the margins of the handover ceremony. 

According to Shinta, it’d be best for the Finance Ministry to focus on expanding its tax base by pursuing those not yet captured in the system. This would be a better move compared to putting greater pressure on existing taxpayers. The government is also expected to reimburse any tax overpayments by businesses — a practice better known as tax restitution —“as soon as possible”. 

The Indonesian Chamber of Commerce and Industry (Kadin) has laid out similar hopes, with its chair Anindya Bakrie saying that the tax refunds “deal with companies’ cash flow”.

"And this is related to keeping the wheels of the economy turning," Anindya said. 

Purbaya —  whose ministerial job lasted for a year —  had said that he preferred to focus on closing the revenue leakage rather than raising the tax rate. His strategy included boosting taxpayer compliance. Shortly before getting the boot, Purbaya told reporters that he would look into reports of delayed tax refund payouts, citing that he had only ordered greater oversight in the leak-prone coal sector.

Suahasil has yet to reveal his full game plan, but he had told reporters that he would keep the state budget credible and healthy.

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