Indonesia has claimed the top position in the 2026 Global Tax Expenditures Transparency Index (GTETI), surpassing South Korea. This index assesses countries based on the frequency, quality, and breadth of their tax expenditure reporting. Indonesia’s rise to the number one spot reflects its commitment to transparency in fiscal matters, earning it 79.9 out of 100 points. Following Indonesia are South Korea and Australia in the rankings.
Speaking on this achievement, Finance Ministry spokesperson Deni Surjantoro emphasized the significance of the tax expenditure report in promoting transparency and accountability. He explained that these reports are vital for monitoring tax expenditures and incentives effectively. The government of Indonesia sees these incentives as a demonstration of its support for the public, particularly for micro, small, and medium enterprises (MSMEs).
Surjantoro highlighted that households and MSMEs receive over 70% of the total tax expenditures, which amounted to Rp 389 trillion (approximately $22 billion) in 2025. These incentives are directed towards essential services and sectors, including food, housing, education, healthcare, and transportation, with the broader aim of job creation and enhancing the quality of life for Indonesians.
The Finance Ministry’s commitment to maintaining and enhancing the transparency of tax expenditures is seen as an integral component of sound fiscal governance. “We remain committed to strengthening the transparency of tax expenditures as a crucial part of sound and accountable fiscal governance,” Surjantoro asserted. This dedication underscores Indonesia’s strategic approach to ensuring that tax incentives align with national economic objectives and public welfare.