Reason Many flee from Indonesia Foreign Company

Reason Many flee from Indonesia Foreign Company

News Update,JAKARTA - Economist Indef Dzulfian Syafrian phenomenon suggests many foreign companies to pull out of Indonesia in recent times is due to a number of factors. One of them is increasing competition in the business.

"They can not compete with their brand-another. For example Toshiba inferior to Samsung, Ford lost with Japanese cars like Toyota or Honda," he said, Monday (02/08/2016).

Furthermore, said Dzulfian, high cost of production. In the era of globalization, global supply chain is a necessity, it is almost impossible to produce a product does not require raw materials imported. "Especially in the context of Indonesia, the content of imported materials for national production was so high that we are very dependent on imports," he added.

Dzulfian said when the rupiah weakened as the current price of goods and materials imports become more expensive, which means increasing the cost of industrial production.

On the other hand, Indonesia's purchasing power is going down well due to the economic slowdown as well as the trust (confidence) the consumer is on the decline. Thus, consumers choose to save their money rather than for consumption.

Moreover, in the context of Harley Davidson, the increase in production costs due to an increase in the goods import tax, such as a luxury tax on the ownership of this bike. Consequently it became less lucrative again.

He revealed that the departure of these companies is a yellow light for the government to speed up the repair and improvement of investment climate and doing business (doing business) in the country. "Because if not, it is not likely other companies will also follow leave from Indonesia," said Dzulfian…(n/u)