Open AccessUNDERGROUND ECONOMY IN INDONESIA
Author(s) -
Sri Juli Asdiyanti Samuda
Publication year - 2016
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 2460-9196
DOI - 10.21098/bemp.v19i1.599
Subject(s) - goods and services , economy , production (economics) , business , economics , agricultural economics , macroeconomics
This paper estimates the size of underground economic activity in Indonesia. Underground economy covers market production of goods and services, legal and illegal, which are sold or purchased illegally. Using monetary approach, this paper concludes the average size of the underground economy in Indonesia during 2001-2013 was 8.33 percent of GDP. Consequently, the average size of potential tax loss was Rp. 11,172.86 billion or about one percent of GDP.