New Finance Minister Suahasil Officially Inaugurated and External Debt Reaches Rp8,211 Trillion, Will Business Tax Restitution Be Disbursed Soon?

President Prabowo Subianto officially inaugurated Suahasil Nazara as Minister of Finance, replacing Purbaya Yudhi Sadewa, at the State Palace, Jakarta, on September 14, 2026. The appointment is stipulated in Presidential Decree Number 97/P of 2026 concerning the Dismissal and Appointment of the Minister of Finance of the Red and White Cabinet for the Remainder of the 2024–2029 Term. The President delivered a message to the Minister of Finance to safeguard the health and credibility of state finances, ensure the APBN remains healthy, and guarantee its capability to execute the government's priority programs.

Suahasil emphasized that his leadership represents a continuation of the work already undertaken by the Ministry of Finance, rather than a change in policy direction. The change in the Minister of Finance has caught the attention of the market, which is closely observing fiscal policy continuity and future policy directions. The Jakarta Composite Index (IHSG) experienced a brief 2% correction before finally closing down 0.10% at 6,534.69, despite gains in several major bank stocks. On the other hand, the challenge of increasingly limited fiscal space and the management of the Excess Budget Balance (SAL) are among the issues that need attention to maintain fiscal credibility and support the sustainability of government policies.

Amidst the market's focus on fiscal policy continuity following the change in the Minister of Finance, the business world has also highlighted the policy on tax overpayment refunds, or restitution. Business actors hope the restitution policy can be evaluated so that delayed tax refunds can be resolved immediately, considering restitution is closely tied to corporate cash flows and operations.

The Indonesian Employers Association (Apindo) hopes that future tax policies will not increase the cost of doing business and will continue to support economic growth and job creation. Apindo also encourages Suahasil to continue the initiatives of the Debottlenecking Task Force (Satgas), which as of August 31, 2026, had received 177 complaints regarding business hurdles, with 135 of them already resolved. Meanwhile, the Indonesian Chamber of Commerce and Industry (Kadin) also highlighted the restitution issue, assessing that withheld tax refunds could disrupt company operations.

On the other hand, the Directorate General of Taxes (DJP) explained that the restitution policy is being carried out more selectively, measurably, and systematically, based on both compliant sectors and those requiring closer supervision. The withholding of restitution is done as part of the audit process in accordance with prevailing regulations and standard operating procedures. As of July 2026, the realization of restitution disbursement reached Rp185.38 trillion, a 34% drop compared to the Rp279.4 trillion recorded in the same period the previous year. On the revenue side, fiscal authorities also face the challenge of expanding the tax base by encouraging more economic actors to enter the formal system, while simultaneously ensuring that the formalization process benefits the business world.

Besides drawing attention to tax policies and corporate cash flows, the development of development financing is also reflected in Indonesia's External Debt (ULN) position.

Bank Indonesia reported that Indonesia's ULN position reached US 453.4 billion, or approximately Rp8,211.8 trillion, as of July 2026. This figure represents a 218.4 billion, growing 3.2% YoY, heavily influenced by inflows into international Government Securities (SBN). Public ULN is directed toward supporting the financing of productive sectors.

Government ULN is utilized for various sectors, including Health Services and Social Activities, Government Administration, Defense and Compulsory Social Security, Education Services, Construction, as well as Transportation and Warehousing. Bank Indonesia assesses that the government's ULN position is relatively safe and under control, as almost all of it consists of long-term debt. Meanwhile, private ULN contracted by 1.2% year-on-year to US$194.6 billion. In line with this, Indonesia's ULN-to-Gross Domestic Product (GDP) ratio stood at 30.7% as of July 2026, with a debt structure dominated by long-term debt.

This series of developments indicates that the change of the Minister of Finance, the tax restitution policy, and the trajectory of External Debt (ULN) are all integral parts of the dynamics of fiscal and national economic management. The change in fiscal leadership has become a focal point for the market in assessing policy continuity, while the business world emphasizes the importance of certainty in tax refunds due to its impact on cash flows and corporate operations.

Furthermore, Indonesia's ULN position as of July 2026 reached US$453.4 billion, growing 4.9% year-on-year, with the increase stemming mainly from public ULN amidst a contraction in private ULN. Government external debt, almost entirely long-term, is directed at supporting productive sectors. These developments demonstrate that ensuring fiscal policy continuity, executing tax restitution according to regulations, and managing ULN in a prudent, measurable, and flexible manner are crucial components in maintaining the sustainability of state financial management and supporting economic activity.