High Cost Economy in Indonesia
Chief Economic Minister Hatta
Rajasa said that the government had continued to reduce various barriersthat
create high economic costs. The government had consistently taken steps on
reducing high economiccosts such as in the construction of infrastructures like
toll roads, expansion of seaports and building dry ports. Besides that,
the government also continued to reduce bureaucratic constraints, regulations
thatdiscouraged investment and fighting against illegal levies. Earlier, a number
of businessmen complainedof high production costs. They considered that there
were still a lot of home works the government had toaccomplish. President
Susilo Bambang Yudhoyono had previously stressed the importance of reducinghigh
costof economy(http://en.voi.co.id/voi-news/2733-indonesian-govt-continues-to-reduce-high-cost-economy)
Manpower and
Transmigration Minister Muhaimin Iskandar asked the local government tosuppress and eliminate the high cost economy practices in their respective regions. "One of theefforts to raise the wages of the worker / laborer is to
suppress and eliminate the causes of thehigh cost burden on business in Indonesia,"
for the cost of an expensive venture into economic barriers
that create difficulties entrepreneurs develop their business and increase the
wages of workers significantly,"We
continue to encourage local governments to improve the climate of employment in
theregion,
by eliminating the practices of extortion, simplify licensing convoluted and
unclear charges that had been burdening other entrepreneurs,"
business in Indonesia
can raise workers'wages when a decline in
the cost of production, the emphasis (high cost economy), improvementof
infrastructure and processes are easy and inexpensive.Kemnakertrans Party has issued the Minister of Manpower and
Transmigration of Indonesia No.13 of 2012 on Components and
Implementation Phases Living Needs Achievement is arefinement Regulation of the Minister of Manpower and
Transmigration No.17/MEN/VII1/2005.Dalam
perfecting new Permenakertrans the original number of species need46 types of
components turned into 60 types KHL KHL component. In addition there are 8 typesof
adjustment / addition of quality and quantity of the KHL and 1 change type
needs.
The government continues to try to
find a system of remuneration that berasaskan justice, well- being in
accordance with the growth and development of the Indonesian economy. But
certainlythe workers
should be paid a decent wage and welfare, so that the process of industrial production
continued to increase and to boost up the economy of the country, with
suppressedhigh cost economy, wages will rise, increasing labor productivity and
worker well-being can beachieved. " is ultimately the competitiveness of
industries in Indonesia will increase and attractinvestors to expand employment
opportunities that people need,"(http://www.antaranews.com/berita/341244/muhaimin-tekan-high-cost-economy-agar-upah- pekerja-naik)
