VIVAnews - Indonesia and China booked positive growth despite the global economic downturn. However, grease money practiced in the archipelago has resulted in the superiority of China against Indonesia.
"In a year, illegal levies may reach IDR3 trillion," said an economic analyst from Gadjah Mada University Mudrajad Kuncoro on Thursday, Feb 11. "The extra money must be allocated by companies when seeking raw materials, manufacturing processes, and export," he said.
Almost every phase of production and distribution is subjected to illegal levies.
"That's the reason of why we can't as competitive as China," he said.
He cited the median provincial minimum fee in provinces has only been due to a rise of 15 percent per year while Batam may have up to 250 percent per year.
China also has more productive workers with 12 hours of working per day compared to Indonesia, which only has 7-8 of working hours per day.
"Indonesia has more holidays than China. In addition, the machineries in China's factories are operated seven days a week," he said.
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Translated by: Bonardo Maulana Wahono
