Finance Ministry Spokesperson Deni Surjantoro said in Jakarta on Monday that Indonesia has steadily improved its ranking since the index was first introduced.
Indonesia ranked 15th in 2023, rose to second place in 2024, and reached the top position this year.
Indonesia’s score this year surpassed several advanced economies, including South Korea, Australia, Canada, Germany, the Netherlands, and France.
GTETI is the world’s first comparative index assessing global tax expenditure reporting practices.
The index is based on data from the Global Tax Expenditures Database (GTED) and ranks countries according to the consistency, quality, and scope of published tax incentive reports.
The TER allows the public to monitor various tax incentives provided by the government.
The report includes information on incentive values, policy objectives, tax categories, beneficiary sectors, and their contribution to economic growth and public welfare.
The Finance Ministry said the TER forms part of state budget governance by ensuring tax incentives can be publicly monitored.
Deni said incentives listed in the TER reflect the government’s support for households and micro, small, and medium enterprises (MSMEs), while also strengthening the investment climate.
Households and MSMEs received more than 70 percent of total tax expenditures, or around Rp389 trillion (US$23.9 billion), in 2025.
The incentives supported essential needs, including food, housing, education, healthcare, transportation, and other public services.
Deni added that the incentives also supported job creation and improved living standards.
He said the ministry remains committed to strengthening tax expenditure transparency as part of accountable and sustainable fiscal governance.
The effort will continue through improved reporting quality, monitoring, and evaluation to ensure incentives remain measurable and deliver optimal economic benefits.
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Translator: TImamatul Silfia, Tegar Nurfitra
Editor: Rahmad Nasution
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