Indonesia has ascended to the top position in the global tax expenditure transparency rankings, overtaking South Korea. According to the 2026 Global Tax Expenditures Transparency Index (GTETI), Indonesia now leads the world in the transparency of its tax expenditure reports, which are evaluated based on their regularity, quality, and scope. The country has improved its ranking by one place in the 2026 list, scoring 79.9 points out of a possible 100, with South Korea and Australia following suit.
The spokesperson for Indonesia’s Finance Ministry, Deni Surjantoro, emphasized the importance of the tax expenditure report in maintaining transparency in monitoring tax expenditures and incentives. He noted that the government’s tax incentives are designed to support the public at large, 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,” Deni stated.
These tax incentives are aimed at addressing essential needs such as food, housing, education, healthcare, and transportation. Additionally, they are intended to foster job creation and enhance the quality of life for citizens. The focus on these areas underscores the government’s commitment to using tax policies to improve economic conditions and support growth at the grassroots level.
Deni further explained that the government remains steadfast in its dedication to transparency in tax expenditures, which he views as a fundamental component of responsible and accountable fiscal management. This commitment is key to ensuring that public resources are utilized effectively and that fiscal policies align with the broader goal of sustainable economic development.