Indonesia has achieved another remarkable milestone on the global stage. According to the Global Tax Expenditures Transparency Index (GTETI) 2026, Indonesia successfully ranked #1 in the world as the most transparent country in managing tax incentives.

This achievement places Indonesia ahead of several developed countries such as South Korea, Australia, the Netherlands, Canada, Germany, Russia, and France.

Indonesia’s Ranking Improved Significantly

Indonesia’s journey in the global tax transparency index has shown a major improvement over the past few years:

• 2023 → Ranked #15
• 2024 → Ranked #2
• 2026 → Ranked #1 in the World

This progress is considered the result of the government’s increasing transparency in managing tax incentives and providing more accountable public disclosures.

What Is Assessed in Tax Transparency?

One of the key factors behind Indonesia’s improved ranking is the publication of the Tax Expenditure Report (TER), which is now more comprehensive and accessible to the public.

The report includes important information such as:

• Types of tax incentives provided
• Value of tax facilities
• Policy objectives
• Beneficiary sectors
• Economic and social impacts

With this level of transparency, the use of tax incentives can now be monitored and supervised more clearly by the public.

Households and MSMEs Receive the Largest Benefits

The government reported that households and MSMEs received more than Rp389 trillion, or around 70% of the total tax expenditure in 2025.

These incentives were allocated to support various essential sectors, including:

• Basic necessities
• Education
• Healthcare
• Transportation
• MSMEs and investment

This indicates that tax incentive policies are designed to maintain public purchasing power while supporting national economic growth.

Tax Policy Remains a Key Economic Instrument

Amid global economic uncertainty, the government emphasized that tax and fiscal policies remain the primary instruments for maintaining Indonesia’s economic stability.

In the first quarter of 2026, Indonesia’s economy grew by 5.61%, while direct investment increased by 7.22%.

Moving forward, the government hopes tax incentives will become more targeted, support sustainable economic growth, and further strengthen transparency in national fiscal governance.