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High cost to do business in Indonesia has been long known, even had close relationship with politics. indication of high cost economic is the effect of the strong political influence and inhibiting economic growth in Indonesia. High cost economic is proportional to activity of corruption. The higher the level of corruption, the higher costs that must be borne folk as consumers. The economic costs come from hidden costs such as illegal fees, theres not bureaucracy and simplification of permissions, including taxation models. Hidden costs such as illegal fees made businessmen tend to move the illegal fees load these into the cost of production, namely on the shoulders of labor. Even the price of goods to be set high. Therefore, do not be surprised if the import goods of China flooding the Indonesian market, the price is much cheaper. Moreover, because of the high competition in the market, the deal with illegal fees load these, businessmen tend to push labor costs rather than raise the price of goods. Bureaucracy and political factors believed to be one of the main causes of high cost economy in Indonesia. The high cost of bureaucracy eventually lead to the price of output produced Indonesia became more expensive when compared with products made in China. Furthermore, the high cost economy caused bureaucratic costs will also make the cost of Indonesia's exports are higher than other countries. This problem is made worse by the mental corrupt government officials who accept bribes from businessmen to assure smooth the business and easy of hold of licensing. Same problem with loan interest rates, loan interest rates in Indonesia is still rated high. the interest rate has implications on the higher costs of loan that must be borne by the company to gain financing sources. interest rate Rural Business Loans which is the source of the most potential funding for business sector small and medium in Indonesia is the lending rates folk second highest in the world, after Myanmar. Meanwhile, interest rates are ideally meant for the development of the business sector small and medium should be in the single digits or a maximum level of 10%. Therefore, Indonesian products less competitive with neighboring countries such as Thailand products.

Infrastructures in Indonesia is now in bad situation and requires special attention. Infrastructure problems in Indonesia is not optimal quality road infrastructure services. Decreased quality of road infrastructure services there in economic lines caused by cargo and dimensions excess, as well as limited maintenance funds. This resulted in vehicle operating costs and the costs of moving goods become expensive and competitive levels decreased.

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