Wednesday, April 16, 2008

High cost of transportation

I read a report in a Jakarata newspaper that the cost of transportation in Indonesia is much higher than several neighbouring countries, such as Malaysia, Thailand and Vietnam. (Singapore is not mentioned).

This high cost adds to the total business costs, and affects competitiveness of business in Indonesia.

This cost affects businesses in two ways:
a) Cost of transporting goods
b) Cost of workers getting to work.

Lesson: It is important to reduce transportation cost, to make an economy more competitive.

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