Indonesia Ranks First in Tax Expenditure Transparency

The Global Tax Expenditures Transparency Index (GTETI) has released the transparency scores for national tax expenditures worldwide. Indonesia has claimed the first rank, overtaking several developed nations including South Korea, the Netherlands, and Germany.

Based on the assessment released on 11 May 2026, Indonesia’s tax expenditure report score reached the top position among 116 countries. According to the official GTETI website, Indonesia holds first place with a score of 79.9, followed by South Korea in second place. Other countries in the top rankings include Australia, the Netherlands, Canada, and Germany.

This position also demonstrates a consistent upward trend since the index was first launched in 2023. At that time, Indonesia was ranked 15th, then rose to 2nd place in 2024, before finally reaching the top spot this year.

Responding to this assessment, the Ministry of Finance stated that the government is consistently strengthening tax expenditure reporting through the Tax Expenditure Report (TER). Through this report, the public can view various tax facilities provided by the state, including their value, policy objectives, tax types, beneficiary sectors, and their direction of support for the economy.

“The Ministry of Finance remains committed to strengthening the quality of tax expenditure transparency as an essential part of healthy and accountable fiscal governance,” said the Head of the Bureau of Communication and Information Services at the Ministry of Discretion, Deni Surjantoro, in an official statement on Monday, 18 May 2026.

He added that tax expenditure reporting is a vital component of State Budget (APBN) governance, as it ensures that every incentive provided can be collectively monitored. According to Deni, the Ministry of Finance is committed to enhancing the quality of tax expenditure transparency by improving reporting quality, as well as monitoring and evaluating the utilisation of incentive policies.

GTETI is the first comparative index for the reporting of tax expenditures or incentives across countries worldwide. The index assesses the regularity, quality, and scope of national tax expenditure reports, aiming to increase transparency and accountability in the field of tax expenditure.