Indonesia Leads South Korea, Australia, and Canada in Tax Transparency
Indonesia has successfully claimed the first position globally in the 2026 Global Tax Expenditures Transparency Index (GTETI). This year, Indonesia outperformed several developed nations, including South Korea, Australia, Canada, Germany, the Netherlands, and France.
Indonesia’s ranking has seen a significant surge compared to recent years. In 2023, the country was ranked 15th, climbed to 2nd in 2024, and has now reached the top spot this year.
According to an official statement from the Ministry of Finance, this achievement reflects the government’s commitment to strengthening transparency and accountability in managing tax incentives through the Tax Expenditure Report (TER).
“Through this report, the public can observe various tax facilities provided by the state, including their value, policy objectives, tax types, beneficiary sectors, and the direction of support for the economy and public welfare. Thus, tax expenditure reporting becomes a vital part of the State Budget (APBN) governance, ensuring that every incentive provided can be collectively monitored,” the official statement noted on Monday (18/5/2026).
Amidst global uncertainty, the government maintains that fiscal and taxation policies remain primary tools for maintaining national economic stability. In the first quarter of 2026, Indonesia’s economy grew by 5.61% year-on-year, supported by domestic demand, investment, and accelerated government spending.
This achievement is consistent with data from the Ministry of Investment, which shows that realised direct investment grew by 7.22%. Meanwhile, the tax incentives reported in the TER reflect the government’s support for the public and MSMEs, while simultaneously fostering a pro-investment climate.
Households and MSMEs received more than 70% of the total tax expenditure, amounting to approximately Rp389 trillion in 2025. “These incentives are provided to support the fulfilment of basic needs such as food and housing, and to reduce costs for education, health, transportation, and more,” the statement added.