Business · Economy · 2 hrs ago

Hashim Says Rp10,000 Trillion of Indonesia’s Economy Goes Unrecorded

Hashim Says Rp10,000 Trillion of Indonesia’s Economy Goes Unrecorded

Hashim Djojohadikusumo says about Rp10,000 trillion of Indonesia’s economic activity is unrecorded.

He told a business gathering that the World Bank estimates 35% to 40% of the country’s activity is missing from official records.

Much of it involves everyday services paid for without receipts, such as haircuts and massages, rather than necessarily illegal transactions.

Indonesia’s recorded gross domestic product is Rp25,000 trillion, so the unrecorded activity means official figures may not show the full scale of the economy.

Hashim says government revenue is about 12% of GDP, compared with figures he cited of 18% for Cambodia, 20% for India and 23% for Vietnam.

He estimates matching Cambodia’s revenue share could bring in an extra Rp1,500 trillion a year, although this is his projection.

The government plans to use electronic systems and AI to collect taxes, with digital taxation set to begin on November 9 and banks, fintech firms and digital platforms involved.

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Hashim DjojohadikusumoPresident’s special envoy for climate and energy
According to the World Bank, approximately 35%-40% of economic activity in Indonesia is not recorded.
via CNBC Indonesia
That means there are approximately Rp10 trillion that is not recorded.
via CNBC Indonesia
Taxes through electronics, IT. AI will be used for all transactions that will later be taxed in accordance with applicable law.
via CNBC Indonesia