Indonesia has surged to the top of the global tax expenditure transparency rankings, overtaking South Korea in the 2026 Global Tax Expenditures Transparency Index (GTETI). This index evaluates countries based on the regularity, quality, and breadth of their tax expenditure reports. Indonesia, Southeast Asia’s largest economy, now leads the list, closely followed by South Korea and Australia, with a score of 79.9 out of 100.
According to Deni Surjantoro, a spokesperson for Indonesia’s Finance Ministry, the country’s tax expenditure report plays a vital role in ensuring transparent monitoring of tax incentives and expenditures. These incentives demonstrate the government’s commitment to supporting the broader public, including micro, small, and medium enterprises (MSMEs).
In 2025, more than 70% of Indonesia’s total tax expenditures, amounting to Rp 389 trillion ($22 billion), benefited households and MSMEs. These incentives are aimed at addressing basic needs such as food, housing, education, healthcare, and transportation, as well as fostering job creation and enhancing the quality of life.
The Indonesian government remains dedicated to enhancing the transparency of its tax expenditures, viewing it as an essential component of responsible and accountable fiscal governance. Surjantoro emphasized the importance of transparency in ensuring that the public can monitor the effectiveness of tax incentives and expenditures.