TUGAS SOFTSKILL BAHASA INGGRIS 2

Nama  : Surya Manogi

Kelas  : 1EA23

Npm   : 17212207

HIGH COST ECONOMY IN INDONESIAN

As we know, Indonesia is a large country that has a long history of independence. Just like the other independent countries, Indonesia has the right to determine their own path independence. And in this regard, Indonesia include them in the preamble of the 1945 Constitution. Indonesia declared that aspire to protect all the people, promote the general welfare, the intellectual life of the nation and the establishment of world order. Four basic principles which, according to the author of a nation where the destination is growing .

Four basic principles are then broken down further in the Long Term Development Plan (RPJP) Indonesia 2005-2025. That the mission of national development that aims to achieve the vision of Indonesia: INDONESIA INDEPENDENT, FORWARD, FAIR AND PROSPEROUS. In order to achieve the vision of the development need to be implemented development programs as a means to achieve justice and social welfare. This is in line with what is conveyed by Kartasasmita (1996) that the development is an attempt to enhance the dignity of the people in his condition are not able to escape from the trap of poverty and underdevelopment. Building a community means to enable or make them become self-sufficient. In essence, the development process should be put as the center position of the people must be-substantial (subject) rather than vice versa become marginal-residuals (object) that knocked dehumanization .

But along the way often leak or barriers affecting the development process itself . Obstructions or leaks from the barriers that impede the minor, major or even shut down the development process itself , Obstructions or leaks are often termed the 'bottlenecking' .

This is bottlenecking the impact will result in inefficiencies that impact on the economic development of the high cost (high economic cost). If development has not been effective, then it will only result in frustration for both national bureaucrats, technocrats, and small people .

The problem of high cost economy dominated by a few factors, Nazamuddin (2007) stated that there are four kinds of economic practices that typically occur high cost, 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

Also based UI research LPEM 2003 that corporate spending to cost "an extra or illegal charges" has reached 11 percent of the cost of production. This is certainly going to be a huge obstacle and can disrupt the investment climate in Indonesia is being built .

As we know, licensing is a mechanism which is common in every independent state. State in this case the government will try to implement licensing for one of them is driving the country's economy as well as for monitoring and controlling business activities. This licensing is required as a means to govern (bestuurszorg) to support improved quality of public services .

Besides a role in monitoring and control efforts, permitting the monetary field also serves to contribute to the country in the form of revenue to the state treasury, for example by charging a licensing fee to the applicant, or in the form of tax breaks given after the licensee conduct its activities and may also form the imposition penalties for violations committed by the licensee of the obligations which must be executable. In terms of investor or entrepreneur, this is a basic permit or legalization of the business they run. So that they can safely and comfortably carry or develop a business that they have. However, this permission could also backfire that actually impede the course of development. This licensing issues often become the topic of discussion in the sessions of the cabinet or at international meetings relating to economic and investment .

Licensing does not always reap the positive response from the public, licensing often a frightening specter for entrepreneurs and investors who want to run businesses in Indonesia. in Article 25 paragraph (4) and (5) of Law No.25 of 2007 on Investment explained that the license of the investment company will conduct business activities acquired through one stop service. In Article 26 paragraph (1) further said that the one-stop service that aims to assist investors in obtaining ease of service, fiscal facilities, and investment information, all of which was to culminate in legal certainty and investment climate in Indonesia .

But in fact not the case, not ensure legal certainty for investors in investing in Indonesia, permitting it to grow into a new arena fertile practice extortion and corruption. Biroktrasi licensing process convoluted regarded as one of the obstacles to the promotion of the economy in Indonesia. Thomas Darmawan Chairman of the Association Indonesian Food and Beverages (GAPMMI) said that the potential production cost can be saved up to 30 percent if the practice of extortion could be eliminated. This means that almost a third of the cost of production is extortion and the sale price to the consumer can be lowered up to 30 percent if the extortion practices eliminated .