TUGAS SOFTSKILL BAHASA INGGRIS 2 : HIGH COST ECONOMY INDONESIA (Conversation)

Nama : Angga Bimantoro
NPM : 11209920
Kelas : 1EA21 ( Kelas Pengulangan )

HIGH COST ECONOMY IN INDONESIA (CONVERSATION)

Susan Barners is an employee in insurance company. She is a hard worker. One day she was offered a new job that is better than the current job. But the head office in office Mr. harrys not want Mrs. Susan to move away from the workplace. Because she was in the value of having excellent potential. Here is a conversation Mr.harrys and Mrs. Susan

Mrs.Susan: Good morning sir

Mr.Harrys: Good morning susan

Mrs.Susan: How's she doing today sir?

Mr.Harrys: Good one .. How about you susan?

Mrs.Susan: I'm also very good at all sir ..

Mr.Harrys: Oh yeah, today we have a meeting with our business partners who will work with this company?

Mrs.Susan: Yeah, all right sir .. I will contact them in advance sir

Mr.Harrys: Be sure you prepare all the files that will be discussed in a later meeting.

Mrs.Susan: Definitely pack will I prepare all .. Sorry sir earlier, after the meeting there will be that I want to talk with you.This is very important.

Mr.Harrys: about what susan? seems very serious.

Mrs.Susan: yes sir this is serious

Mr.Harrys: okay we will discuss later

After completion of the meeting

Mr.Harrys: Susan what you want to talk about? What you want to withdraw from this company?
Mrs.Susan: That’s right sir, I did want to resign from the company.

Mr.Harrys: I strongly disagree to your decision. what are the reasons you want to quit?

Mrs.Susan: Honestly, I was very tired sir work here.

Mr.Harrys: Why?

Mrs.Susan: I work till evening and I received no salary comparable to what I've done so far.

Mr.Harrys: So that was the cause. I strongly disagree when you resigned from the company. Because I think you are enough potential employees in the company's.

Mrs.Susan: Thank you for your assessment sir.

Mr.Harrys: Well I tell you what, I will try to talk this all led to head of the company. I hopefully they approve it.

Mrs.Susan: Okey sir, I promise if approved will cancel my intention to resign from the company.

Mr.Harrys: Well then I'll let you in the near future.

a week later

Mr. Harrys: Susan, spatial me now

Mrs.Susan: Okey sir

Mr.Harrys: Susan, I've talked it all to the head of the company.

Mrs.Susan: Then what is his sir?

Mr.Harrys: Head of the company approved my proposal to raise the salaries of employees and additional overtime pay

Mrs.Susan: I am very happy to hear that sir.

Mr.Harrys: You are not so resigned from the company right?

Mrs.Susan: I want to keep my promise sir, I was not so resigned from the company. And I also want to thank you.

Mr.Harrys: Well, I am also very pleased to hear the answer from you.

Mrs.Susan: Yes sir, I will work even better for this company.

Mr.Harrys: Good susan, the company was in require employees like you.

Mrs.susan: Yes sir, I will not surrender to this company

Mr.Harrys: Ok, now you can go back to work.

Mrs.Susan: Once again thank you sir

Mr.Harrys: You are welcome susan

Mrs.Susan: Excuse me sir, good morning

Mr.Harrys: Good Morning Susan

 

TUGAS SOFTSKILL BAHASA INGGRIS 2 : HIGH COST ECONOMY INDONESIA ( ARTICLE )

Nama : Angga Bimantoro
NPM : 11209920
Kelas : 1EA21 ( Kelas Pengulangan )

High Cost Economy in Indonesia and Indonesian Competitiveness Implications

Implementation of the ASEAN - China Free Trade Area (ACFTA) can be regarded as an opportunity for the domestic industry to expand into China and Southeast Asia markets. However, this argument is questionable because in reality the competitiveness of Indonesian domestic industry is still relatively lower when compared with China and ASEAN member countries another. Based on the analysis of the Ministry of Industry, the competitiveness of industrial products and manufacturing Indonesia to ASEAN countries only 15% who have a strong competitive edge and nearly 60% of the products have weak competitiveness. Another case against China, the competitiveness of Indonesian products that are strong only 7%, remaining competitive are 29% and 55% weaker.

So, what exactly is the cause of the low competitiveness of Indonesia when compared to China. Mari Elka Pangestu, Minister of Trade, Republic of Indonesia, in an interview has said that competitiveness or competitiveness is determined by many factors, including external and internal factors. Own external factors closely related to competitiveness and comparative advantages of other countries who became Indonesia’s competitors.  For example, X products made in China that have very cheap prices and huge production scale is difficult to rivaled by Indonesia, making Indonesia the low competitiveness of the product X when compared with China. In addition to external factors, there are also internal factors that determine the competitiveness of the product, especially with regard to domestic factors, including human resources / employment, investment, production costs, and technology. These internal factors that require improvement and repair via a comprehensive government policy.

Low competitiveness of Indonesian products in international trade, which are influenced by internal factors of the domestic economy can be attributed to the high cost or high cost economy that still exist in the national economy. There are several aspects that lead to high cost economy in Indonesia, among other labor problems, problems of credit interest rate / high borrowing costs, bureaucracy / politics is not the least costly, and infrastructure issues. Five aspects will be discussed further to analyze the causes of high cost economy in Indonesia, which impact on the weak competitiveness of domestic products compared with products made in China.

Labor Issues

Problems of labor/labor is one of the causes of high cost economy in Indonesia. This also led to the competitiveness of Indonesia children’s products made it difficult to compete with similar products made in China.Widjanarko Tjokroadosumarto, Toys Indonesian Employers Association chairman (APMI) revealed differences in the treatment of the workers there, which led to the high cost economy. Workers in China earn better facilities than workers in Indonesia. Despite only receiving a salary of $ 100, labor in China is generally not necessary to rent housing for local government workers rented bungalow is available at a cheap price. Another case with workers in Indonesia are 30% of the salary used for the cost of the contract. Although labor costs in Indonesia are relatively lower than other ASEAN countries (except Vietnam), the cost to lay off workers in Indonesia is very high especially during the dismissal of employees in large numbers. When the issue of the mass layoffs of workers in Indonesia are usually massive demonstrations to demand the severance provision. It is then also contribute to the cause of high cost economy.

In addition, the regional minimum wage in urban areas are higher to make the company a

lot of building factories and hiring workers in rural areas are lower minimum wage. This would then have implications for the rising cost of transportation and supporting infrastructure expenditure (both of these aspects will be discussed in the next section).

Bureaucratic problems

Bureaucracy and political factors believed to be one of the main causes of high cost economy in Indonesia. Bureaucratic costs, both official and unofficial in some areas can reach 20% of the cost of production. The high cost of the bureaucracy will ultimately lead to the price of output produced Indonesia became more expensive when compared with products made in China. Furthermore, the cost of high cost economy due to the bureaucratic costs will also make the cost of Indonesia's exports are higher than its competitors, including China. Bureaucracy problem is aggravated by mental corrupt government officials. To ensure the smooth running of the business and the ease of taking care of licensing, entrepreneurs often have to give bribes to the officials concerned. Given the amount of kickbacks was not a little amount so that the total cost to be incurred to run a business entrepreneur is getting bloated.

Interest Rate Credit Problems

Unlike the interest rate in China is relatively low in order to support the growth of their industry, mortgage interest rates are still high in Indonesia. This has implications for the interest rate on the higher costs of loan that must be borne by the company to obtain financing. Furthermore, interest rates People's Business Credit (KUR), which is the most potent source of funding for the SME sector in Indonesia is people lending rates second highest in the world, after Myanmar. Meanwhile, interest rates are ideally designed for the development of the SME sector should be in the single digits or a maximum level of 10%. In fact, the current interest rate for micro KUR in Indonesia over Rp 20 million for loans down by 22%. Meanwhile, retail KUR interest rates for loans of Rp 20 million to Rp 500 million, amounting to 14%. Meanwhile, lending rates in China and Thailand ranged only at the level of 4-8%. Therefore, industrial products China and Thailand have higher competitiveness than Indonesian products.

Infrastructure problems

Infrastructure in Indonesia at present is in a bad state and requires special attention. In the year 1994/1995 damaged roads are still around 109 820 km. However, until 2003, long-damaged roads has reached nearly 170,000 miles. Based on estimates, the need to improve the roads around Rp 6.5 trillion. Sumatra highway that length is 2343.5 km and 1172.2 km in length Pantura level of damage to date has reached 25 percent and 22 percent, and the necessary funds to fix around Rp 5.3 trillion. If these circumstances continue, within the next 10 years of economic lost 40-50 field will reach trillions of dollars.

Infrastructure problems in Indonesia is not optimal quality of road infrastructure, as there are many. Land roads damaged in the economy, limited access of the center-the central area of production to marketing, as well as to urban outlets and the existing highway is not optimal support regional development. Declining quality of existing road infrastructure in economic lines, especially in the East Cross northern coast of Java and Sumatra, which caused excessive charge and dimensions, as well as limited maintenance funds. This resulted in vehicle operating costs and the costs of moving goods become expensive and competitive levels decreased. Basically, the availability of adequate infrastructure is expected to reduce the high cost economy. Infrastructure (particularly road infrastructure and port infrastructure) are inadequate in some provinces may hinder the smooth flow of goods export and transport of goods between regions that require the company to incur additional costs. If this continues, the competitiveness of domestic products will also likely further decline.