Indonesia has achieved a significant milestone by becoming the global leader in tax expenditure transparency, surpassing South Korea. The 2026 Global Tax Expenditures Transparency Index (GTETI), which evaluates countries based on the regularity, quality, and scope of their tax expenditure reporting, has placed Indonesia at the forefront. With this accomplishment, Indonesia has moved up one position in the 2026 rankings, now leading ahead of South Korea and Australia. The nation scored an impressive 79.9 out of 100, reflecting its commitment to transparent fiscal practices.
The Indonesian Finance Ministry, represented by spokesperson Deni Surjantoro, emphasized the importance of the tax expenditure report in maintaining transparent oversight of tax expenditures and incentives. These incentives are not just numbers on a report; they represent the government’s active support for the broader public, including 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 highlighted, underscoring the widespread impact of these fiscal policies.
These tax incentives have been strategically directed towards essential sectors such as food, housing, education, healthcare, and transportation. The goal is to not only support basic needs but also to foster job creation and enhance the quality of life for the population. By channeling resources into these areas, the government aims to build a more robust and resilient economy for its citizens.
Surjantoro further stated the Indonesian government’s commitment to improving the transparency of tax expenditures as part of its dedication to sound and accountable fiscal governance. This commitment is pivotal for ensuring that tax policies effectively serve their purpose and are implemented with integrity. As Indonesia continues to lead in tax transparency, it sets a benchmark for other countries aiming to enhance their fiscal governance and public accountability.