Economic System In Indonesia

Best Economic System in Indonesia

In this advanced era, Indonesia can be regarded as a country that have a good opportunities in the growth of its economic system. The large amount of labor and infrastructure that has improved quite well, made Indonesia's economic system also increase. The existing economic system can be developed and adapted to the current conditions of Indonesia while still adhering to the Pancasila and the 1945 Constitution. Indonesia's economic system will always increase depending on how the government accumulates various indicators. Such as encouraging private investment, infrastructure development efforts and it is estimated that investment can contribute quite a lot. Young scholars also may not focus on being to be an employees, but must be brave to become a young entrepreneurs. Keep in mind, to improve Indonesia's economic system there must be an effort from the government. In addition, the community must also support the government to make it happen. The resources that are owned must also be utilized well for the welfare of the community and a better future for the country.

Indonesia Economic System in Soekarno's Era

In the period of the 1950s Indonesia adopted a guidance development model in economic management, with a basic pattern of Growth with Distribution of Wealth where the role of the central government was very dominant in regulating economic growth (planned universal development). This model was not successful, because the complexity of the economic, social, political and security problems faced by the government and wanted to be resolved together and simultaneously. The culmination of the failure of old-order economic development was a hyper inflation that reached more than 500% at the end of 1965. Indonesia didn't fully adapted the capitalist economic system, but also integrated it with economic nationalism. An inexperienced government still interferes in production activities that affected many people. Plus political turmoil, resulting in instability in the country's economy. Almost all of the economic programs of the Soekarno government failed in the middle of the road. A guided economic system requires all elements of the Indonesian economy to became instruments of the revolution. In a guided economy, economic activity is emphasized in the concept of mutual cooperation and kinship as formulated in Article 33 of the 1945 Constitution.