UNDERGROUND ECONOMY IN INDONESIA

Sri Juli Asdiyanti Samuda ()
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Sri Juli Asdiyanti Samuda: Badan Pusat Statistik

Bulletin of Monetary Economics and Banking, 2016, vol. 19, issue 1, 39-56

Abstract: 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.

Keywords: Underground economy; tax evasion (search for similar items in EconPapers)
JEL-codes: E26 H26 K42 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:19:y:2016:i:1b:p:39-56

DOI: 10.21098/bemp.v19i1.599

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