Purbaya dismisses two Kemenkeu officials after tax restitution probe

Finance Minister Purbaya Yudhi Sadewa announced the dismissal of two Ministry of Finance officials on May 4, 2026, following an investigation into five officials involved in tax restitution management. The move addresses discrepancies in 2025 fiscal year restitution payouts. Purbaya also introduced new rules for more orderly restitution processes.

At the Ministry of Finance in Jakarta on Monday, May 4, 2026, Purbaya Yudhi Sadewa said he had investigated five officials who issued the highest amounts of tax restitution. "I investigated five officials who issued the most restitution. Today, I will dismiss two of them," he stated.

The probe stemmed from staff reports of low restitution values, which surged several times over by the end of fiscal year 2025. "That's what we will fix. No more misinformation," Purbaya said. He hopes the dismissals serve as a warning for officials to execute instructions accurately and avoid fraud.

Purbaya announced Finance Minister Regulation Number 28 of 2026, lowering the accelerated PPN restitution threshold from Rp5 billion to Rp1 billion for eligible Pengusaha Kena Pajak. "We just want to control it so restitution comes out more orderly," he said.

Tax restitution processes are under investigative audit by the Badan Pengawasan Keuangan dan Pembangunan (BPKP) for 2016-2025. Purbaya highlighted Rp25 trillion net PPN restitution leaks in the coal industry and promised firm action on any deviations found. Audit results are pending, with further coordination planned with BPKP Head Muhammad Yusuf Ateh.

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Finance minister assures fiscal safety amid global uncertainty

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Finance Minister Purbaya Yudhi Sadewa urged the public not to panic amid uncertain global conditions, assuring that fiscal and state revenue positions remain safe. He highlighted a Rp 420 trillion Saldo Anggaran Lebih (SAL) as a layered defense. The decision to hold subsidized fuel (BBM) prices steady until the end of 2026 follows direct instructions from President Prabowo Subianto.

Indonesia's Finance Minister Purbaya Yudhi Sadewa disclosed underpaying about Rp50 million in his personal annual income tax return. He pointed out glitches in the Coretax system and noted that such shortfalls are common for taxpayers with multiple income sources.

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Finance Minister Purbaya Yudhi Sadewa is optimistic that the 2026 state budget deficit can be controlled due to January tax revenue growth of 30.8 percent. This achievement reached Rp116.2 trillion, or 4.9 percent of the budget target. The government's strategy emphasizes economic stimulus over tax rate increases.

Indonesia's Corruption Eradication Commission (KPK) addresses the state bribing state phenomenon in a corruption case involving rogue Depok District Court judges and PT Karabha Digdaya employees. The sting operation occurred on February 5, 2026, in Depok, West Java, related to land dispute handling. KPK emphasizes focus on malicious intent and agreements among the perpetrators.

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Indonesia's Corruption Eradication Commission (KPK) arrested Rejang Lebong Deputy Regent Hendri alongside Regent Muhammad Fikri Thobari in a sting operation on Monday night, March 9, 2026. A total of 13 people were detained in connection with suspected corruption in local government projects. Nine of them, including the two officials, were flown to Jakarta for further questioning.

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