Jakarta. Finance Minister Purbaya Yudhi Sadewa said on Monday that two tax officials are set to be removed over issuing excessive tax refunds, as authorities investigate a surge in reimbursements that has weighed on state revenue.

The internal probe was launched after refund payouts rose sharply, significantly reducing net tax collection, Purbaya told reporters at his office.

At least five officials are under investigation, though Purbaya did not disclose their identities or ranks.

“I investigated the officials responsible for the largest refund disbursements, and today two of them will be dismissed. I am serious about this,” he said.

Finance Ministry data shows that tax refunds totaled Rp 361.2 trillion ($20.8 billion) in 2025, leaving net tax revenue at Rp 1,917.6 trillion from a gross collection of Rp 2,278.8 trillion ($131 billion).

Purbaya acknowledged misjudging the scale of refund outflows last year, saying initial estimates provided by staff significantly understated the eventual total.

“At internal meetings, I asked about the potential refund size. I was told it would be small. Only at year-end did I realize it was multiple times higher than what had been indicated,” he said.

The elevated refund trend has continued into 2026. As of March 31, gross tax revenue stood at Rp 518.2 trillion, while net revenue reached only Rp 394.8 trillion -- implying refunds of Rp 123.4 trillion within the first quarter alone.

Purbaya said the investigation is ongoing as the government seeks to plug revenue leakages linked to the refund system.

“I am very serious about this issue because the funds being released are becoming difficult to control,” he said.

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