Indonesia has achieved a significant milestone by securing the top position in the 2026 Global Tax Expenditures Transparency Index (GTETI), surpassing South Korea. This index evaluates countries based on how regularly, thoroughly, and comprehensively they report tax expenditures. With a score of 79.9 out of 100, Indonesia has moved up one spot to lead the list, followed closely by South Korea and Australia.
The prominence in this ranking underscores Indonesia’s commitment to transparency in its financial governance, as highlighted by Finance Ministry spokesperson Deni Surjantoro. He emphasized the importance of the tax expenditure report in maintaining clear and accountable monitoring of tax spending and incentives. The government’s tax incentives reflect a broad support strategy for the general public and micro, small, and medium enterprises (MSMEs), illustrating its dedication to economic inclusivity.
According to Deni, households and MSMEs benefit significantly from these tax expenditures, receiving more than 70% of the total, amounting to Rp 389 trillion ($22 billion) in 2025. This substantial allocation supports essential sectors such as food, housing, education, healthcare, and transportation, aiming to foster job creation and enhance the quality of life for Indonesians.
In a statement, Deni reiterated the government’s resolve to enhance the transparency of tax expenditures, viewing it as an integral component of effective and accountable fiscal management. The focus on transparency and support for basic needs reflects Indonesia’s strategic approach to sustaining economic growth and stability through well-managed public finances.