Kadin Indonesia warns tax restitution delays impact corporate cash flow

The Indonesian Chamber of Commerce and Industry (Kadin) has raised concerns regarding the slow process of tax restitution, noting its direct impact on the cash flow stability of domestic businesses. Kadin Chairman Anindya Bakrie emphasized that liquidity is a decisive factor for the daily operational continuity of companies across various sectors.

Bakrie stated that a company's financial resilience depends not only on profit records but also on the availability of adequate liquid funds. He noted that the funds currently held up in the restitution process could otherwise be reinvested into business expansion and the financing of new projects.

Minister of Industry Agus Gumiwang Kartasasmita previously highlighted frequent complaints from business actors regarding these hurdles. He noted that the timely return of tax overpayments is a crucial issue for the industrial sector as it directly affects corporate cash flow stability.