1.
Problem
recognition, definition and evaluation
To find a standard salary of a country, we must
ensure several factors that can cause an increase / delay a State economy.
2. Development of the feasible alternative
According to the International Cost Factor Manual of Cost Data Online Richardson, note there are several factors namely:
· People
· History
· Government
· Foreign Business
· Taxation
· Regulatory Agency
· Trade Regulation
3. Development of the outcome
Labor standards must be different for each country by
looking on the alternative side. Can be explained as follows:
People : find out about education, life expectancy and work force.
History : tells the origins of the citizens and the establishment of a State.
Government : knowing the form of government, politics, security affairs,
economic etc.
Foreign business : knowing your existing business forms such country does free
trade zones or bonded zones.
Taxation : taxation system are regulated by government.
Regulatory agency : those relating to investment, issue licenses, permits and
formulate regulatory policy
Trade regulation : dealing export and import with other countries.
4. Criteria
From the above criteria chosen are all related lines
from each other. We can find out what percentage of the activities in the
government suppose to phase the project in engineering, construction and
procurement.
5. Analysis
Sample analysis was used for the State of Indonesia on Richardson Cost Data Online are:
6. Selection of alternative
if you are using references Richardson Cost Data Online
for State of Indonesia, the price of materials and labor cost multiplied by the
location of these factors. For example: the price of 8 inch globe valve
material is USD. 3,082.50, mechanical labor crew USD. 53 old workmanship 3
hours. then for the calculation of material and labor multiplied location
factor.
Local material prices USD. 3,082.50 x 0.78 = USD. 2,404.35 (price in Indonesia)
Local Labor USD. 53 x 3 x 0:31 = USD. 49.29 (Pertamina propose field labor is
labor and material)
7. Performance monitoring and post-evaluation of results
Any cost in reference to a foreign data base is not the
same on the location factor.
Here it must be remembered that there is a difference in ability between the
Indonesian and foreigners.
References:
Great job, Pak Heru!!! Nice start on your paper topic.
ReplyDeleteWhat you need to be careful about is using the US dollar as the basis for your analysis. See what Pak Trian is doing on his paper.
What you are probably going to find out is the government of Indonesia is manipulating the exchange rate. If they do this (and most governments do) then it invalidates the use of those indices.
What you might want to do is use the "Big Mac" Index to compare the costs of a Big Mac in different cities in Indonesia? Using the Big Mac Index is one way of fairly accurately calculating the city to city cost indices. Why? Because a Big Mac consists of local labor, plus some imported and some local materials, plus local rents, electricity and indirect costs.
What I would recommend you include in your paper is a comparison of what Richardson's has published and REFINE it based on the selling price of a Big Mac in different cities in Indonesia. (Which should be easy enough to find out with a few phone calls.)
To help you get started, here is the Big Mac Index http://www.economist.com/search/apachesolr_search/big%20mac%20index and if you Google on this topic, you will hundreds of very good articles to cite.
Bottom line- your topic is a VERY important one and will be very favorably received by the paper reviewers at AACE HQ.
Keep up the good work!!
BR,
Dr. PDG, Singapore