In a significant development on the international fiscal stage, Indonesia has risen to the top of the Global Tax Expenditures Transparency Index (GTETI) for 2026, surpassing South Korea. This achievement marks a notable advancement in the country’s efforts to enhance transparency in tax expenditure reporting. The GTETI evaluates nations on the frequency, quality, and comprehensiveness of their tax expenditure disclosures, and Indonesia has now claimed the leading position, closely followed by South Korea and Australia. With a score of 79.9 out of 100, Indonesia’s ascent highlights its commitment to fiscal transparency within Southeast Asia’s largest economy.

Deni Surjantoro, a spokesperson for Indonesia’s Finance Ministry, emphasized the importance of these tax expenditure reports in maintaining transparent oversight of tax spending and incentives. He noted that the incentives are reflective of the government’s dedication to supporting the broader public, particularly micro, small, and medium enterprises (MSMEs). Notably, households and MSMEs benefit significantly, receiving over 70% of the total tax expenditures, which amounted to Rp 389 trillion (equivalent to $22 billion) in 2025.

These tax incentives have been instrumental in addressing fundamental needs such as food, housing, education, healthcare, and transportation. The government’s strategy aims not only at improving the quality of life but also at creating job opportunities across the nation. By allocating substantial resources towards these areas, Indonesia demonstrates a proactive approach in bolstering the welfare of its citizens and nurturing economic growth.

Deni reaffirmed the government’s commitment to enhancing the transparency of tax expenditures, recognizing it as an essential component of sound and accountable fiscal governance. This dedication underscores Indonesia’s broader goals of promoting economic stability and ensuring that tax policies effectively serve the public interest. As the country continues to prioritize transparency, it sets an example for others in the region and beyond, showcasing the positive impact of clear and accountable fiscal practices.