Indonesia has achieved a significant milestone by ascending to the top of the Global Tax Expenditures Transparency Index (GTETI) for 2026, surpassing South Korea. This index evaluates countries based on the consistency, quality, and comprehensiveness of their tax expenditure reports. In this year’s rankings, Indonesia moved up one spot to secure the leading position, followed closely by South Korea and Australia, with Indonesia scoring 79.9 out of 100 points.
The Finance Ministry of Indonesia emphasized the importance of this achievement in promoting transparency in monitoring tax expenditure and incentives. Ministry spokesperson Deni Surjantoro highlighted that the tax incentives reflect the government’s commitment to supporting the general public and micro, small, and medium enterprises (MSMEs). According to Surjantoro, households and MSMEs benefit from more than 70% of the total tax expenditures, amounting to Rp 389 trillion ($22 billion) in 2025.
These tax incentives play a crucial role in addressing fundamental needs such as food, housing, education, healthcare, and transportation. Additionally, they are instrumental in job creation and enhancing the quality of life for citizens. The Indonesian government’s efforts in this direction underscore its dedication to fostering economic growth and stability.
Deni Surjantoro reiterated the government’s commitment to maintaining and enhancing the transparency of tax expenditures, which he described as a vital component of sound and accountable fiscal governance. This commitment indicates Indonesia’s resolve to uphold high standards of fiscal responsibility while ensuring that tax policies effectively benefit its population.