I hope this ‘Government & Business’ thread can be like the ‘Jokes’ thread where we can post our jokes without expecting comments or questions from other members. But on this thread will be serious matters regarding government policies affecting businesses in Indonesia. As foreigners who invested in Indonesia, there is not much we can do to improve the business climate here. One way of helping this country is to express our opinions (and frustrations) through this forum hoping some big shot reads about it. I’ll start with a few of my own…
INFORMATION AND COMMUNITY FOR EXPATS IN INDONESIA
Government & Business
- Thread starter mauricio
- Start date
The Ministry of Trade and KADIN
The Minister of Trade recently signed an MOU with KADIN (Indonesian Chamber of Commerce & Industry) which will require importers & exporters to be members of KADIN. Now, as members of KADIN, you have to pay membership fees and other contributions for “this & that”. So it is a burden to some companies, especially the smaller ones. And how about exporters who ship “once in a blue moon”, like the wooden arts & crafts in Central Java? Do they have to become members of KADIN first before being allowed to ship?
The Minister of Trade recently signed an MOU with KADIN (Indonesian Chamber of Commerce & Industry) which will require importers & exporters to be members of KADIN. Now, as members of KADIN, you have to pay membership fees and other contributions for “this & that”. So it is a burden to some companies, especially the smaller ones. And how about exporters who ship “once in a blue moon”, like the wooden arts & crafts in Central Java? Do they have to become members of KADIN first before being allowed to ship?
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Constitutional Court ruling on employment of husband and wife
Husband and wife can now work for the same company. Previously some companies will require one to resign if they wish to get married, now the company cannot do that. Does the Constitutional Court knows how a corporation is run? Did they ask for opinions from the business sector?
Husband and wife can now work for the same company. Previously some companies will require one to resign if they wish to get married, now the company cannot do that. Does the Constitutional Court knows how a corporation is run? Did they ask for opinions from the business sector?
Constitutional Court ruling on autonomy
Now it seems the central government is "powerless" to revoke laws issued by provincial governments or even regency, according to a Constitutional Court ruling based on Indonesia's autonomy law. So are we going to expect more sharia-like laws (for example)? Not to mention local laws created to "tax" businesses.
Now it seems the central government is "powerless" to revoke laws issued by provincial governments or even regency, according to a Constitutional Court ruling based on Indonesia's autonomy law. So are we going to expect more sharia-like laws (for example)? Not to mention local laws created to "tax" businesses.
Corn
The government has declared that Indonesia is now self-reliant on corn. Reality is, the government is not allowing corn imports and feed mills are forced to import wheat as a substitute for corn to produce animal feeds. Watch out, egg and chicken price may go up.
The government has declared that Indonesia is now self-reliant on corn. Reality is, the government is not allowing corn imports and feed mills are forced to import wheat as a substitute for corn to produce animal feeds. Watch out, egg and chicken price may go up.
Rice
Rice policy causing millers to close their business, one of Indonesia’s biggest will lay off about 1,700 workers http://ekonomi.kompas.com/read/2017...bisnis-beras-pt-tiga-pilar-phk-1.700-karyawan
Rice policy causing millers to close their business, one of Indonesia’s biggest will lay off about 1,700 workers http://ekonomi.kompas.com/read/2017...bisnis-beras-pt-tiga-pilar-phk-1.700-karyawan
So would that some Regency’s would like to have a government like Ache, that will be fun,
Chinese Medicine
The Indonesian government is making it difficult to import Chinese medicines. Many Indonesians, rich & poor, rely on it for minor ailments as well as life-saving remedies. Sure they get free treatment with BPJS, but the queue is long and it takes hours of waiting. BPJS is suited for those with chronic disease and those requiring hospitalization. To ease the financial burden of BPJS, the government should make it easier to import Chinese medicine so people can buy it and avoid going to the hospital. At the moment, tax is high and import regulations are complicated (if not impossible), so you go to Chinese medicine shops and you see empty shelves. On the other hand, you go to supermarkets and you see lots of imported goodies. Why the stark contrast? The government is failing to see that Chinese medicine is an essential item consumed by the masses.
The Indonesian government is making it difficult to import Chinese medicines. Many Indonesians, rich & poor, rely on it for minor ailments as well as life-saving remedies. Sure they get free treatment with BPJS, but the queue is long and it takes hours of waiting. BPJS is suited for those with chronic disease and those requiring hospitalization. To ease the financial burden of BPJS, the government should make it easier to import Chinese medicine so people can buy it and avoid going to the hospital. At the moment, tax is high and import regulations are complicated (if not impossible), so you go to Chinese medicine shops and you see empty shelves. On the other hand, you go to supermarkets and you see lots of imported goodies. Why the stark contrast? The government is failing to see that Chinese medicine is an essential item consumed by the masses.
Hardcopy & Softcopy
The government is going high-tech, applications can be done online… but have to submit hardcopy… and softcopy too. I don’t know what they do later with all the papers (hardcopy) in their office. Do they shred them (before selling it as scrap)? There must be tons of it each year. How about the USB Flash Drive (softcopy)? Where are they discarded?
The government is going high-tech, applications can be done online… but have to submit hardcopy… and softcopy too. I don’t know what they do later with all the papers (hardcopy) in their office. Do they shred them (before selling it as scrap)? There must be tons of it each year. How about the USB Flash Drive (softcopy)? Where are they discarded?
Don’t really know about Chinese medicine, when my wife and I were first married, strange red marks would appear on her arms and legs, incredibly itchy and would drive her mad with the irritation, they would then disappear as strangely as they had appeared, eventually we go to this Chinese doctor who lived locally, well we got the strangest concoction you could imagine, it was leaves branches and anything else, all had to be boiled up, it really stunk, you were supposed to apply it to the itchy marks, failed miserably , so off to Pondok Indah hospital to see a specialist, several tests, result an allergy to Nickel, so dispense with the watch, the back is nickel, nickel belt buckle, nickel earrings, result no more problems, Chinese medicine fail,
My daughter has or I should say had a painful ovarian cyst, several treatments of acupuncture and some strange Chinese mixtures, results total failure, vist to a superb hospital in Penang, success,
Me, I tried some Chinese mixtures and acupuncture for my ankle osteoarthritis, again total failure, I haven’t tried any western medicine other than some pain killers which with long term use cause all sorts of problems, so I suppose on that case a draw
That is my experience of Chinese medicine, I suppose there must be some benefits as there are a billion Chinese and most swear by it, me, not at all
My daughter has or I should say had a painful ovarian cyst, several treatments of acupuncture and some strange Chinese mixtures, results total failure, vist to a superb hospital in Penang, success,
Me, I tried some Chinese mixtures and acupuncture for my ankle osteoarthritis, again total failure, I haven’t tried any western medicine other than some pain killers which with long term use cause all sorts of problems, so I suppose on that case a draw
That is my experience of Chinese medicine, I suppose there must be some benefits as there are a billion Chinese and most swear by it, me, not at all
@Anglian
One of the many things which amazed me when I first arrived here was the popularity of Chinese medicine. There were all sorts of people buying at the stores, from civil servants to office/factory workers to business owners. Once I asked why Chinese medicine when Western medicine is safer and more effective as it has been scientifically-tested. He answered that Chinese medicine has been tested on humans for thousands of years, not just on animals in a laboratory setting. Recently, Western medicine just discovered that there is a connection between high blood pressure and kidney when the Chinese had already known this since about 4 thousand years ago. Of course, at that time, they didn’t know about high blood pressure, but they knew that a kidney not working right can cause symptoms which we now associate with high blood pressure. Personally, I don’t see a TCM physician if I have a health problem. I never had acupuncture in my life too, but I have taken Chinese medicines in pills, tablets, capsules, and syrup (not the concoction kind) for minor ailments like flu, colds, cough, sore throat, etc. I guess after living in Indonesia for decades, I am becoming like an Indonesian.
One of the many things which amazed me when I first arrived here was the popularity of Chinese medicine. There were all sorts of people buying at the stores, from civil servants to office/factory workers to business owners. Once I asked why Chinese medicine when Western medicine is safer and more effective as it has been scientifically-tested. He answered that Chinese medicine has been tested on humans for thousands of years, not just on animals in a laboratory setting. Recently, Western medicine just discovered that there is a connection between high blood pressure and kidney when the Chinese had already known this since about 4 thousand years ago. Of course, at that time, they didn’t know about high blood pressure, but they knew that a kidney not working right can cause symptoms which we now associate with high blood pressure. Personally, I don’t see a TCM physician if I have a health problem. I never had acupuncture in my life too, but I have taken Chinese medicines in pills, tablets, capsules, and syrup (not the concoction kind) for minor ailments like flu, colds, cough, sore throat, etc. I guess after living in Indonesia for decades, I am becoming like an Indonesian.
Indonesia’s export manufacturing industry
Last week, the President was blaming ITPC (Indonesia Trade Promotion Center) for not doing their job of promoting the export of Indonesian products. Indonesia’s 2017 export value of manufactured products is far below Thailand and Malaysia, and even lower than Vietnam too. The President compared the population of the said countries and realized how far Indonesia is behind… Indonesia’s population is bigger than the three countries combined. But I won’t blame ITPC, it is useless to promote if the country’s product cannot be competitively priced. Importers always buy from suppliers who offer the best price. How can other countries produce the same product at lower price? Why is the cost of production in Indonesia so high? I think the President should examine this instead of blaming ITPC. But of course, the country can save a lot of money by shutting-down ITPC.
Cost of production is high in Indonesia because;
1. Permit for employing foreigners cost a lot of money, the government should revoke DPKK and simplify the process.
2. Logistics cost is high, and why is it high? Because transporters (both land & sea) have to pay a lot “here & there”, just imagine, it is cheaper to ship a container to neighboring countries than a domestic port.
3. Wage is okay but labor cost is high, how come? Here’s an example, you need three workers to do the same job in Indonesia whereas in Vietnam you need two and in China just one.
4. Interest rate is high, if you borrow from the bank.
5. Corruption is still prevalent from the lowest rank, and it is a strain to the finances of a company. If you don’t “pay”, nothing gets done. You want to fight and complain… forget it, we are here to do business. Actually, I don’t see corruption getting less in this generation because civil servants still “pay” to get their job/position. You see, if you “pay” for something, you want a return of your “investment” in the future, don’t you? And when you start to enjoy the “profits”, you don’t want to stop the practice anymore.
6. Multilayered taxation is making the cost of materials used in production expensive. For example, VAT, everything you buy has VAT. If you sell locally, you can cross the VAT you paid with the VAT you collected from your customers. However, if you do export only, you cannot cross the VAT… you can get restitution or rebate though, but will you get back your money 100%???
Last week, the President was blaming ITPC (Indonesia Trade Promotion Center) for not doing their job of promoting the export of Indonesian products. Indonesia’s 2017 export value of manufactured products is far below Thailand and Malaysia, and even lower than Vietnam too. The President compared the population of the said countries and realized how far Indonesia is behind… Indonesia’s population is bigger than the three countries combined. But I won’t blame ITPC, it is useless to promote if the country’s product cannot be competitively priced. Importers always buy from suppliers who offer the best price. How can other countries produce the same product at lower price? Why is the cost of production in Indonesia so high? I think the President should examine this instead of blaming ITPC. But of course, the country can save a lot of money by shutting-down ITPC.
Cost of production is high in Indonesia because;
1. Permit for employing foreigners cost a lot of money, the government should revoke DPKK and simplify the process.
2. Logistics cost is high, and why is it high? Because transporters (both land & sea) have to pay a lot “here & there”, just imagine, it is cheaper to ship a container to neighboring countries than a domestic port.
3. Wage is okay but labor cost is high, how come? Here’s an example, you need three workers to do the same job in Indonesia whereas in Vietnam you need two and in China just one.
4. Interest rate is high, if you borrow from the bank.
5. Corruption is still prevalent from the lowest rank, and it is a strain to the finances of a company. If you don’t “pay”, nothing gets done. You want to fight and complain… forget it, we are here to do business. Actually, I don’t see corruption getting less in this generation because civil servants still “pay” to get their job/position. You see, if you “pay” for something, you want a return of your “investment” in the future, don’t you? And when you start to enjoy the “profits”, you don’t want to stop the practice anymore.
6. Multilayered taxation is making the cost of materials used in production expensive. For example, VAT, everything you buy has VAT. If you sell locally, you can cross the VAT you paid with the VAT you collected from your customers. However, if you do export only, you cannot cross the VAT… you can get restitution or rebate though, but will you get back your money 100%???
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My Daughter was offered a position in the Drug enforcement Agency here, cost plus being a Virgin,150 million didn’t have a problem with the Virgin part but we didn’t think 150 mil was worth it, the money we were told was for uniform and training, her friend who is the same height as my daughter, 154cm and in the agency is really scary, she tells me she slaps dealers around and has a gun in her handbag, I wouldn’t trust her with a pencil case, she says she isn’t corrupt but some how here salary is 10 mil a month
I should have said with add ons if you know what I mean
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