article high cost in indonesia

Problems of high cost economy is largely dominated by a few factors, Nazamuddin (2007) stated that there are four kinds of economic practices the high costs usually occur, namely:
1. Illegal levies;
2. Formal charges based on tax regulations with relatively high rates;
3. Imposition of double taxation and multi-layered;
4. Long bureaucratic.
Obstructions or leaks from the barriers that impede the minor, the major or even shut down the development process itself. Obstructions or leaks are often termed the ‘bottlenecking’.
Impact bottlenecking is going to result in ineffectiveness of development that impact the high economic costs (high cost economic). If development has not been effective, then it will only result in frustration for both national bureaucrats, technocrats, and small people.
There are various causes of high cost economy among the extortion (extortion), corruption, collusion, and licensing. These four closely interrelated with each other.
Ease of licensing can be a solution to reduce the actual practice of high-cost economy. More and more regulations will increasingly provide opportunities for corruption, collusion and extortion that led to the high cost economy. Is so severe the licenses in Indonesia? Is could have facilitated compounded why is still firmly held by our bureaucrats? Authorizes local autonomy as possible for the area to pick up the taxes and levies have spawned local regulations are problematic because it has a high cost economy in the region. As reported by the World Bank, compared to China and Singapore, a new permit to start a business in Indonesia will take much longer. In China it took 41 days, Singapore even it only took 8 days and Indonesia took 151 days.
We discuss only the economic costs that arise in the field. A simple example citrus fruit on top. For example, prices of citrus growers in Medan there 4 thousand dollars per kilo and will be distributed to Jakarta. Orange to fit into the truck alone is the term japrem neither the thugs who dominate the field rations. They do not work on the truck load of orange, but collect money whiz to force fit. Urus permit no cost to be incurred. Driver who took the truck, is equipped with some money for food, fuel, and of course money is prepared to launch an orange until the trip in Jakarta. Later, the truck driver will be met with the officer in charge of the transportation of land that stood in the door of public transport terminals, meet with brown uniformed officers who collect fees-that is, traffic control officers, officials at weigh stations, port officials, thugs streets, thugs central market and others. All of them asking for money ‚ neither are popularly referred to as. No wonder the price of oranges boosted to 12 thousand per kilo at the consumer level. Later, the price will be higher, if the oranges were distributed to other cities through the northern coast.
Problems with other commodities ensued were so similar, such as: rice, sugar, cooking oil, eggs, flour, peanuts, fruits, cement, wood, etc., of the price which should be cheap, we as consumers will get very expensive! Finally, the economic cost borne by the most high.
Another example For example, the price of orange seed and fertilizer prices should cost a lot of farmers get low prices. On the other hand, farmers are already ensnared by the middlemen. It could be that the price of oranges is 4 thousand dollars the farmers are even. Did not get anything.
The high economic costs can pose Some Economic Issues in Indonesia
1. High Unemployment.
From year to year, the problem of unemployment in Indonesia is growing. There is no surefire solution to tackle the high unemployment today. Procurement jobs alone to be sufficient to reduce unemployment in our country.
2. High Cost of Production
It was common knowledge in the industry in our country is that in addition to the cost of production is high enough not to mention the added costs that should not be issued. However, because of the safety factor in our country is still very low and the inability of the government to support and protect the industrial sector, as a result there are a lot of illegal levies that even recently conducted openly.
It is also finally making the cost of production is increasing. Worse yet, there is no definite solution to this problem. Even some industries are considered good enough eventually went bankrupt and prefer to turn into an importer who just simply provide warehouse and only a few workers compared with establishing a new industry. This should be of particular concern the government to address these issues and other economic problems in Indonesia.
Other economic problems in Indonesia
3. The Government‚ decision Less Right
We all know that in recent years this once very widespread circulation of goods from China in our country, is not it? Well, the cause is the government’s decision in the case of economic regulation that is less precise when viewed from the condition of the economies of Indonesia. At that time the government decided to join the ASEAN-China Free Trade Area (ACFTA). Finally it came to pass as we feel today. Local products almost lost with products originating from China.
4. Material Necessity Still Rare
Scarcity of basic commodities is one of the serious problems affecting the economic conditions of Indonesia. This problem will be felt at all in the time leading up to the big day as the feast of Idul Fitri, Christmas and other major holidays. Although governments sometimes raid the market to plunge immediately see the cause of the scarcity of basic commodities, but this action it is still far from resolving the problem itself scarcity of basic needs.
5. Banking interest rate Too High
You should know that one of the indicators to determine whether or not the economy is in a state interest rate. The higher or lower the interest rates in a country, it would greatly affect the economic conditions in the country. Well, for the bank’s interest rate in Indonesia is still considered too high so it still needs more attention from the government to tackle this problem.
6. The value of High Inflation
In addition to interest rates, another thing that also affect economic conditions in a country is the value of inflation. In Indonesia, inflation assessed value nearly sensitive enough. Even just because of high food prices in the market, the inflation rate is also affected. Result of the high inflation rate in our country, it will be popping the economic problems of Indonesia.
Descriptions in advance ultimately concluded reality that can not be denied that the economy is still a high-cost business character in Indonesia. Some things must be done to break this deadlock. First, the central government is responsible for the regulation to simplify its scope, such as taxation, assurance to investors, labor, and business closure. At this level, the performance of which has been achieved by neighboring countries, such as Thailand and Malaysia (Singapore unnecessary) could be a benchmark. Hidden costs incurred for these variables can be reduced with the use of technology, so that every payment process should not be there face to face between government officials and the (potential) investors. Meanwhile, concerning the number of procedures, reduction procedure is non-negotiable without compromising the broader substance.
for local governments needed serious steps to suppress the emergence of local regulations that anti-investment. Experience MoF and MoHA regulations that deprive thousands of troubled prove that the number of local government regulations that are inconsistent with the spirit of improving the business climate. Therefore, the central government should expressly provide penalties for regions that do not support the direction of improving the business climate / investment. As for areas that significantly contribute to the improvement of the investment climate (and directly reduce the high economic cost) need to be given incentives, both fiscal and non-fiscal scheme. It is this model that should be adopted by the government, both central and local levels, thus improving the investment climate is real in the future. Without this kind of systematic steps, the reduction of high cost economy simply be utopia.

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Susan  :  Good morning Mr.Harris

Harris  :  Good morning too susan. What time you get to the office?

Susan  :  7 o’clock mr. harris

Harris  : ok, how about you job, is there anything you do not understand?

Susan  : I have completed everything but if there is something wrong please understand.

Harris  : oh ok good, no problem. This afternoon we are meeting drngan insurance company. profit   purposes please be prepared meeting this afternoon

Susan  : oke mr. harris but before meeting I want talking with you, mr harris.

Harris  : oke, you want to talk about?

Sussan : sorry mr harris, I actually wanted to talk to if I want to withdraw from this company because I feel this job is not my field. so sorry again sir.

Harris   : what? Why? I do not want to lose a good employee and diligent as you susan. whether you're there be a period of ah with salary in this company?

Sussan  : no , sir. Ketikkan teks atau alamat situs web atau terjemahkan dokumen.

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diterjemahkan oleh Google secara otomatisThis had been my decision was unanimous.

Harris    : okay, if it is your will, I could not resist.

Sussan  : thank you, mr. harris