JAKARTA: Indonesia companies’ uncontrollable cost is estimated to reach 20%-30%. The uncontrollable costs pose a high cost that hit Indonesia's economy efficiency, said Analyst from Center for Economics and Development Studies of Chamber of Trade and Industry Ina Primiana.
Uncontrollable cost is costs beyond company’s controllable cost which is usually in the form of bribes to expedite or facilitate the business activities. Meanwhile, controllable costs, among others, are raw material costs, the cost of the production process until the cost of taxes and levies.
Uncontrollable costs, she believed, burden all phases of the economy from upstream to downstream.
The uncontrollable costs including additional costs at the port on the highway to import raw materials or export finished products, the burdensome levy and cost of fuel and vehicle damage caused by poor infrastructure.
The main causes of high uncontrolled costs are corruption, complicated bureaucracy and poor infrastructure. (T05/aph)