Indonesia has ascended to the top position in the Global Tax Expenditures Transparency Index (GTETI) for 2026, surpassing South Korea to claim the leading spot. This index evaluates countries on their tax expenditure report based on criteria such as regularity, quality, and scope. With a score of 79.9 out of 100, Indonesia now leads the global ranking, followed closely by South Korea and Australia.
A representative from Indonesia’s Finance Ministry, Deni Surjantoro, emphasized the importance of the tax expenditure report in enhancing transparency in the monitoring of tax expenditures and incentives. He highlighted that these tax incentives are indicative of the government’s commitment to supporting not only the general public but also micro, small, and medium enterprises (MSMEs).
Surjantoro noted that in 2025, households and MSMEs received more than 70% of the total tax expenditures, amounting to Rp 389 trillion, or approximately $22 billion. These incentives are directed toward essential needs such as food, housing, education, healthcare, and transportation, with the goal of fostering job creation and improving quality of life.
He further stated, “We remain committed to strengthening the transparency of tax expenditures as a crucial part of sound and accountable fiscal governance.” This commitment underscores Indonesia’s dedication to maintaining robust fiscal policies and ensuring that tax-related incentives are managed transparently and effectively.
