Tax Restitution Policy Accrelation in Supporting Post-Crisis Economic Recovery: Evidence From Indonesia

Abstract

This study aims to analyze the impact of tax restitution policy on post-crisis economic recovery in Indonesia during the period 2010–2025. Tax restitution is a fiscal policy instrument used by the government to improve business liquidity by refunding tax overpayments to taxpayers. In the context of post-crisis economic recovery, accelerated tax restitution is expected to support business continuity, increase investment, and stimulate economic growth.

The findings show that getting tax refunds helps the economy recover positively and significantly after a crisis in Indonesia. This discovery indicates that raising tax refunds helps boost the cash flow of businesses, supports their productive efforts, and speeds up the recovery of the economy. Additionally, it has been observed that inflation has a harmful and important impact on economic recovery. This means that when inflation is high, it lowers people's ability to buy things and hinders economic growth. In the same way, the BI Rate has a negative and important impact on economic recovery, meaning that when interest rates are higher, it makes people less likely to invest and spend money.

The study finds that tax restitution is not just a way for the government to manage taxes but also a useful tool for economic policy that helps in recovering from a crisis. So, the government needs to keep working on making the tax refund process better by being more efficient, clear, and timely. At the same time, it should ensure the economy remains stable by balancing its spending and money policies.