Production costs

Production costs

From Bisnis Indonesia

The President has instructed that all bribes and all levies not associated to production should be stopped. A follow-up measure taken by the minister of manpower eradicated 37 levies on supervision of safety and health norms. I hail the President's instruction and minister's action.

Workers have long struggled against all kinds of illegal levies to have the chance to live a better life. Workers' pay makes up only 10 percent of production cost, whereas bribes add between 25 and 30 percent to the cost of production.

There are two categories of levies. The first one is the levy officially and regularly collected by government -- not within the framework of the state budget. Occasional levies may also be collected in relation to specific events such as independence anniversary celebrations, road development and youth activities. The second category is the levy illegally collected by certain officials for their own benefit. The bribes are difficult to detect.

In my opinion, only public involvement in the effort to curb illegal levies will bring positive results. The government should give a fair chance for the workers to support the government's plan to wipe out illegal levies so that the companies can raise worker's pay, welfare and morale.

MUCHTAR PAKPAHAN

Jakarta