4. There are restrictions or trade prohibitions on certain goods by the government.
What is the impact of the black market on the State of Indonesia?
The black market certainly has a negative impact on state finances. The first is that the government is losing revenue. The purpose of transactions carried out on the black market is to avoid all taxes and trade administration fees paid to the government. Because of this, the government could lose revenue due to the black market.
Second, the black market creates losses for legal industries. This happens because companies that have legality in carrying out their operations will certainly incur higher administrative and tax costs than companies that are illegal or illicit trade. So that the legal company will provide a higher price due to increased costs and taxation. Meanwhile, non-legal companies do not incur tax fees so that the goods sold will also be much cheaper, so this can threaten the sustainability of companies that have legality.
Third, the black market makes it difficult for the country's economic development. Everything on the black market is illegal and all transactions are not recorded. In the absence of such records, the government will find it difficult to estimate the economic status of the country, why is that? This is because the goods being traded are not tracked in the national economic registration system. As a result, it is also difficult for the government to plan and implement policies for the country's economic development.
Here's an example of the highest case regarding the black market in Indonesia!
1. Illegal logging
Every year, Indonesia loses 648,000 hectares of forest due to illegal logging, forest fires, forest encroachment, and forest conversion. However, the government never knows who the wood is being sold to and where is the proceeds from the illegal timber sale.
2. Counterfeiting of goods
According to the results of the Indonesian Society Anti Counterfeiting (MIAP) survey, Indonesia's losses from counterfeiting of goods were around IDR 4.41 trillion and in 2014 it increased sharply to IDR 65.1 trillion.
3. Drug trafficking
