Purbaya: Indonesia Underground Economy Size Uncertain

Finance Minister Purbaya Yudhi Sadewa said on Tuesday, 28 October 2025, that the potential size of Indonesia’s underground economy cannot be measured accurately. The comment was made at a press briefing in Jakarta.

He explained that economic activities not recorded in official statistics are inherently difficult to quantify, making existing estimates speculative. Various analysts have attempted to gauge the figure without a reliable methodology, and Purbaya stressed that without clear measurement, policy to capture the hidden value cannot be formulated. He added that once the amount can be determined, the activity would no longer qualify as underground economy.

The government will first improve sectors that are already measurable before turning attention to the hidden economy. Specific measures to bring underground activity into the formal system will be considered once accurate data become available.