Indonesia has claimed the top spot in the 2026 Global Tax Expenditures Transparency Index (GTETI), surpassing South Korea in the process. This index evaluates countries on the frequency, quality, and comprehensiveness of their tax expenditure reports. With this achievement, Indonesia has moved up one position from its previous ranking, scoring 79.9 out of a possible 100 points. Following close behind are South Korea and Australia in the standings.
The Indonesian Finance Ministry, represented by spokesperson Deni Surjantoro, emphasized the significance of their tax expenditure report in promoting transparency and monitoring of tax-related spending and incentives. The report highlights the government’s dedication to supporting the public through various tax incentives, particularly focusing on micro, small, and medium enterprises (MSMEs).
“Households and MSMEs benefit from more than 70% of total tax expenditures, or Rp 389 trillion ($22 billion) in 2025,” Surjantoro noted. This extensive allocation of resources underscores the government’s efforts to address essential needs such as food, housing, education, healthcare, and transportation, while also aiming to generate employment and enhance the overall quality of life for its citizens.
Surjantoro further affirmed Indonesia’s ongoing commitment to reinforcing the transparency of tax expenditures as an integral component of effective and accountable fiscal governance. This dedication to clarity and openness is designed to ensure that tax policies effectively serve the broader public interest and contribute to sustainable economic development.
