Indonesia has emerged as a leader in global tax expenditure transparency, taking the top position in the 2026 Global Tax Expenditures Transparency Index (GTETI). This achievement marks a significant shift, as the country surpasses South Korea, which previously held the number one spot. The GTETI evaluates nations based on the regularity, quality, and comprehensiveness of their tax expenditure reports, and Indonesia has notably advanced to the pinnacle of this list, followed closely by South Korea and Australia. Garnering 79.9 points out of a possible 100, Indonesia stands out as Southeast Asia’s largest economy.
The importance of this ranking is underscored by the statements from Deni Surjantoro, a spokesperson from Indonesia’s Finance Ministry. On Monday, Surjantoro emphasized the critical role of tax expenditure reports in maintaining transparent oversight of tax expenditures and incentives. These incentives, he noted, are indicative of the government’s commitment to supporting the broader public and nurturing micro, small, and medium enterprises (MSMEs).
According to Surjantoro, households and MSMEs are the primary beneficiaries of these tax incentives, receiving more than 70% of the total tax expenditures, which amounted to Rp 389 trillion, or approximately $22 billion, in 2025. These incentives are strategically directed towards fundamental needs such as food, housing, education, healthcare, and transportation. Moreover, they aim to foster job creation and enhance the overall quality of life for citizens.
Surjantoro reiterated the country’s dedication to bolstering the transparency of tax expenditures, which he identified as a vital component of sound and accountable fiscal governance. This commitment signifies Indonesia’s ongoing efforts to uphold transparency and accountability in its fiscal policies, ensuring that tax expenditures are effectively monitored and utilized for the well-being of its populace.