High Cost Economy in Indonesia

Chief Economic Minister Hatta Rajasa said that the government had continued to reduce various barriers that create high economic costs. The government had consistently taken steps on reducing high economic costs 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 that discouraged investment and fighting against illegal levies. Earlier, a number of businessmen complained of high production costs. They considered that there were still a lot of home works the government had to accomplish. President Susilo Bambang Yudhoyono had previously stressed the importance of reducing high 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 to suppress and eliminate the high cost economy practices in their respective regions. "One of the efforts to raise the wages of the worker / laborer is to suppress and eliminate the causes of the high 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 the region, 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), improvement of 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 a refinement Regulation of the Minister of Manpower and Transmigration No. 17/MEN/VII1/2005.Dalam perfecting new Permenakertrans the original number of species need 46 types of components turned into 60 types KHL KHL component. In addition there are 8 types of 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, wellbeing in accordance with the growth and development of the Indonesian economy. But certainly the 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 suppressed high cost economy, wages will rise, increasing labor productivity and worker well-being can be achieved. " is ultimately the competitiveness of industries in Indonesia will increase and attract investors to expand employment opportunities that people need," (http://www.antaranews.com/berita/341244/muhaimin-tekan-high-cost-economy-agar-upahpekerja-naik)