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All Journal Jurnal Ekonomi Pembangunan Jurnal Reviu Akuntansi dan Keuangan Economic Journal of Emerging Markets Jurnal Ekonomi Kuantitatif Terapan JAKPI Jurnal Pariwisata Pesona Jurnal Keuangan dan Perbankan Jurnal Ilmiah Mahasiswa FEB JAM : Jurnal Aplikasi Manajemen Journal of Indonesian Applied Economics Wacana, Jurnal Sosial dan Humaniora Media Trend: Berkala Kajian Ekonomi dan Studi Pembangunan Dinar: Jurnal Ekonomi dan Keuangan Islam Jurnal Ekonomi dan Studi Pembangunan (Journal of Economics and Development Studies) Jurnal Ilmu Ekonomi dan Pembangunan Jurnal AKSI (Akuntansi dan Sistem Informasi) Bisma: Jurnal Bisnis dan Manajemen Journal of Innovation in Business and Economics Arthavidya Jurnal Ilmiah Ekonomi JAD: Jurnal Riset Akuntansi & Keuangan Dewantara EkBis: Jurnal Ekonomi dan Bisnis Jurnal Akun Nabelo : Jurnal Akuntansi Netral, Akuntabel, Objektif Journal of Management - Small and Medium Enterprises (SME's) Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Journal of International Conference Proceedings Jurnal Ekonomi dan Binsis Contemporary Studies in Economic, Finance and Banking (CSEFB) Jurnal Ilmiah Bisnis dan Ekonomi Asia (Jibeka) Jejak: Jurnal Ekonomi dan Kebijakan
David Kaluge
Fakultas Ekonomi Dan Bisnis Universitas Brawijaya
Religion Humanities Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Electrical & Electronics Engineering Environmental Science Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences Other

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Journal : Jurnal Perspektif Pembiayaan dan Pembangunan Daerah

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Dynamics of the underground economy in border areas: A case study of Indonesia-Timor Leste Nalle, Frederic Winston; Suman, Agus; Kaluge, David; Ekawati, Marlina
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Vol. 13 No. 4 (2025): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Publisher : Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22437/ppd.v13i4.41879

Abstract

The underground economy in border regions represents a complex phenomenon shaped by regulatory gaps, limited access to formal economic systems, and high transaction costs in legal trade. This study analyzes the dynamics of informal cross-border trade along the Indonesia–Timor-Leste border, focusing on North Central Timor (TTU) Regency and the Oecusse Enclave. Employing a qualitative descriptive approach, the research draws on field observations, semi-structured interviews, and thematic analysis to demonstrate that underground economic activities function not only as a survival strategy but also as an informally institutionalized, socially organized economic ecosystem. The findings reveal that price disparities, weak supervision, and limited institutional capacity collectively drive communities’ dependence on illicit trade. A comparative analysis of similar cases from international border regions highlights the need for policy responses tailored to local contexts. The study recommends strengthening bilateral cooperation, adopting surveillance technologies suited to regional capacities, and implementing community-based economic empowerment programs to facilitate the transition toward an inclusive and sustainable formal economy.
Co-Authors Achmad Usman Maulana Agus Suman Alan Smith Purba Aldila, Exi Alfarado, Rafael Amrullah, Muhammad Mukhlis Amrullah, Muhammad Mukhlis Anis Wijayanti Anis Wijayanti Antonius Nugroho Adi ARDIANSYAH ARDIANSYAH Athaya, Mahadiva Frylia Aviyanti, Richo Diana Birgitta Dian Saraswati Candra Fajri Ananda Chalid Husen Dias Satria Divya Ratna Nindita Dwidyah Rini, Ayu Dwiyoso, Hertoto Dyah Putri Sekar Arum Ekaviana, Dessy Ekawati, Marlina Fadilah, Anisa Fajriana, Nadia Fauzan Aryaputra Firnanda Novita R Fithri, Naylal Heni Pujiastuti Hernanda, Bima Hertanti Wahyurina Ida Ayu Purba Riani Idah Zuhroh Ivan Purnama Putera Jannah, Yana Raudhatul Jibril, Hadira Thumaninah Juniarti, Titin Kasnaeny Karim, Kasnaeny Khusnul Ashar Kristyanto, Visi Saujaningati Lila Rahajeng Majok, Alith Jacob Marius Robert Seran Markus, Morencia Maureen Inesella LT Muhammad Mahdi Muhammad Mahdi, Muhammad Munawar Ismail Nadia Fajriana Nadia Fajriana Nayaka Artha Wicesa Nindita, Divya Ratna Olivia Louise Eunike Tomasowa, Olivia Louise Eunike Paputungan, Rahmita Dwinesia Parinusa, Sisilia Maria Patricia Juan Aurellia Pradani, Amaretta Hanindya Pratama, Laode Ivan Putu Mahardika Adi Saputra Rachmasari, Annisa Rahajeng, Lila Rahmita Dwinesia Paputungan Ramadhani, Febrina Nur Ramadhany, Diwa Artha Ramadhany Richo Aviyanti Rofik, Mochamad Rudi Firmansah Santoso, Pramana Ridha Saputro, Arif Sari, Agatha Christy Permata Setyastrini, Ni Luh Putri Silvi Asna Prestianawati Sim, Yulia Melyanda Sir, Monsar Marito Smith, Alan Subhan Purwadinata Sudarnice, Sudarnice Susanto, M. Harri Trisna Trisna, Trisna Umiriyana, Umiriyana Uswatun Hasanah, Dinda Wahyudi Winda Sari Yogi Pasca Pratama, Yogi Pasca Yohanes Hadi Soesilo Yon Widiyono Yusi Pramandari Zuhdiyaty, Noor