Indonesia has ascended to the top position in the global rankings for tax expenditure transparency, surpassing South Korea. This achievement is highlighted in the 2026 Global Tax Expenditures Transparency Index (GTETI), which evaluates countries based on the regularity, quality, and scope of their tax expenditure reports. In this latest index, Indonesia has moved up one place, achieving a score of 79.9 out of 100, with South Korea and Australia following closely behind.
Deni Surjantoro, a spokesperson for Indonesia’s Finance Ministry, emphasized the importance of the tax expenditure report in providing transparent oversight of tax expenditures and incentives. He highlighted that these incentives are instrumental in reflecting the government’s commitment to supporting the general public, as well as micro, small, and medium enterprises (MSMEs). According to Surjantoro, households and MSMEs benefit from more than 70% of the total tax expenditures, which amounted to Rp 389 trillion ($22 billion) in 2025.
The tax incentives in Indonesia are designed to support essential needs, such as food, housing, education, healthcare, and transportation. Additionally, these measures aim to create jobs and enhance the overall quality of life for citizens. By prioritizing these areas, the government intends to ensure broad-based development and economic stability, benefiting both individuals and businesses alike.
Surjantoro reiterated the government’s commitment to enhancing the transparency of tax expenditures, viewing it as an integral component of sound and accountable fiscal governance. The focus on transparency not only helps in monitoring the distribution of tax incentives but also ensures that the benefits are effectively reaching the targeted groups, thereby fostering a more equitable economic environment.