Economic System adopted by Indonesia Current

Since the founding of the Republic of Indonesia, has many state leaders at the time that
has redefined the shape the economy is right for the people of Indonesia, either individually or in
group discussions. As Bung Hatta himself, during his lifetime he had the idea, that the basis of
the economy of Indonesia in accordance ideals of helping is cooperative but not necessarily all
economic activities should be done in a cooperative, forcing the form has actually violated the
basic economic cooperatives. Likewise, the economic figures Indonesia at the time, Sumitro
Djojohadikusomo, in a speech in the United States in 1949, confirms that the aspired is a kind of
mixture of the economy. According to the 1945 Constitution, Indonesia economic system
contained in Articles 23, 27, 33 & 34. Economic Democracy chosen because it has the positive
traits that were (Suroso, 1993) The economy is structured as a joint venture based on the
principle of family.

Indonesia Economic System Current

Normatively ideal basis economic system Indonesia is Pancasila and the Constitution of
1945. Thus Indonesia's economic system is an economic system oriented to the Almighty God
(the enactment of ethics and moral religion, not materialism); Just and civilized humanity (not
familiar with extortion or exploitation); Persatuan Indonesia (entry into force of togetherness,
family principle, socio-nationalism and democracy in the socio-economic); Populist (prioritizing
the economic life of the people and the lives of many people); and Social Justice (eq /
emancipation, prosperity major public - not the prosperity of individuals).
Of the points above, justice is very central to the economic system of Indonesia. Fairness
is a starting point, the process and at the same destination. Article 33 UUD 1945 is the main
article bertumpunya Indonesia's economic system is based on Pancasila, the apparatus, namely
Articles 18, 23, 27 (paragraph 2) and 34.
Based on TAP MPRS XXIII / 1966, the following grains Economic Democracy (later to
become the provisions in the Guidelines of 1973, 1978, 1983, 1988), which includes the
affirmation of the application of Articles 33, 34, 27 (paragraph 2), 23 and beads derived from the
Articles of the Constitution of property rights yuang social functioning and the freedom to
choose the type of work. In the 1993 Guidelines grains Economic Democracy coupled with
elements of Article 18 of the 1945 Constitution in the Guidelines 1998 and 1999 Guidelines, the
grains of Economic Democracy is not called again and predicted "restored" to the original
Articles of the 1945 Constitution.
The cornerstone of this imperative normative-containing sublime moral and ethical
guidance, which puts people in the position of noble, as a sovereign people, the people as the
people who glorified God, who live in brotherhood with each other, help each other and work
together.
Indonesia's current economic system is a system of economic democracy that the national
economic system that embodies the philosophy of Pancasila and the 1945 Constitution which
berasaskan kinship and mutual cooperation of, by and for the people under the leadership and
supervision of the government. This economic system has the ideal basis of Pancasila and the
1945 constitutional basis.
Characteristic feature of the economic system of economic democracy:
1. The economy is structured as a joint venture on family principles.
2. Production branches which are important for the State and who dominate the life of the
people controlled by the State.
3. Earth, water, and natural riches contained therein controlled by the State and used for the
prosperity of the people
4. Property rights are recognized peorangan utilization must not conflict with the public
interest.
5. Destitute and abandoned children entitled to social security.
In the economic system in Indonesia should avoid them as follows:
1. System free fight liberalism, namely that fosters exploitation of people and other nations
2. etatisme system that provides an opportunity for the government to dominate the economy so
that it will turn off the potential and creativity of the people.
3. The system of economic monopolies that concentrate power pasa one group that would harm
society.
In this world economic system can be divided into three, namely, the capitalist system
that is oriented toward freedom and the hoarding of capital, a socialist economic system that
focuses on equity and the common welfare, as well as mixed economic system which is a
combination of the two economic systems above. Well, Indonesia is a country that included
adopting a mixed economy which combines with the liberal capitalist economic system. More
precisely Indonesia embraced democracy comes from the realization of economic philosophy of
Pancasila and the 1945 Constitution which berasaskan kinship and mutual cooperation of, by and
for the people under the leadership and supervision of the government.

Within a country, the dynamic process of economic development is influenced by two factors,
namely internal (domestic) and external (global). Which belong to the internal factors are the
physical conditions (climate), geographical location, quantity and quality of natural resources,
human resources, and initial conditions of the economy. The external factors include
technological developments, economic conditions and political world, as well as global security.

Islamic economic system in Indonesia

Syariah atau economic system of Islam is one of the economic system that also exists in
Indonesia. Islamic economic system is Indonesia's economic system which is basically derived
from Islamic law. In practice, the Islamic economic system is not so expect the huge amount of
profit but the emphasis on avoiding usury or not good things others in the economy. Islamic
economic system in Indonesia is growing very rapidly with tangible evidence that almost all
banks in Indonesia have sharia program for its customers.