THE ECONOMIC SYSTEM IN INDONESIA

The economic system in Indonesia is economic democracy is an economic system which came from by and for the people. The people play role active in economic activity, and government shares to give the direction and guidance of economic policy.

Fundament of economic system in Indonesia
Ideology fundament (phylosophical) : Pancasila
Structural fundament (operational) : UUD 1945 section 33 (23A-23G) section 27, section 34
Section 33 UUD 45, constitution of 1945 output of the fourth amandement states that :
1. The economy is arranged as collective work with by virtue of kinship principle.
2. Production branches which are vital for the state and which gains control of throng intention is controlled by the state.

3. Earth, water and natural resources which consist in it is dominated by the state and utilities as big as possible for the people’s prosperity.
4. The national economyis carried out by virtue of economic democracy on the principles of togetherness, efficiency, a fair deal, continuating, whith vision of environment, independence, and also balancing, advancement and unity of national economy.
5. Further regulation concering the implementation this section is arranged by-law
6. Operational fundament : Broad Outlines of the National’s Direction

Positif traits of economic democracy :
1. The economy is arranged as collective work by virtue of kinship principle.
2. Production branch which are vital for the state and which gains control of live throng intention is conrolledby the state.
3. Earth, water and natural resources which consist in it is dominated by the state and utilities as big as possible for the people’s prosperity
4. The sources of the state’s properties and finance are used with convenant of people representation.

Negative features :
1. Free fight liberalism
2. Etatisme
3. Monopoly

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