INDONESIA ECONOMIC SYSTEM
Economic problems is essentially the transformation or processing problems fulfilling / satisfying the needs, the form factors of production, namely labor, capital, natural resources and skills (skill) into goods and services.
The economic system is a branch of economics that addresses the issue of decision-making in the governance structure of the organization to address issues of economic-to achieve national goals of a country. According Dumairy (1966), the economic system is a system that regulates and economic relations between people with a set of institutional arrangements life, then it says also that the economic system does not have to stand alone, but relates to philosophy, and lifestyle of the people point of view place stand. The economic system is actually the only one of the elements in a system of supra society. The economic system is part of the ideological unity of society in a country.
In countries with regimes leiberalisme political ideology of democratic governance, economic ideology generally embraced capitalism with economic management based on market mechanisms. In these countries tends to be etatist State of the Union organizer with a centralized bureaucratic structure. The economic system of a country is said to be typical of so distinguished from the prevailing economic system or implemented in other countries. Based on some corners reviews like:
1. Ownership system resources or factors of production
2. Flexibility competition people to each other and for each other
receive a reward for his performance
3. Levels of the role of government in managing, directing and planning
business life and the economy in general.
Indonesia Economic System
As we know that what determines the form of an economic system but the basic philosophy of the state upheld, it is used as the criteria of the institutions, particularly the economic institutions that became the embodiment or realization of philosophy.
The struggle thinking about what the economic system should be applied in Indonesia has started since Indonesia has not achieved its independence. Until now the struggle continues this thought, this is reflected in the development of thinking about economic system Pancasila SEP. According to Sri-Edi Suwasono (1985), the struggle thinking about ESP is essentially an interpretation of the dynamics of economic provisions in the 1945 Constitution.
1. Article Economy In 1945
Article 33 UUD 1945, is a production branches that dominate the lives of many goods and services that are vital for human life, and are available in limited quantities. The review of the failure of a vital particular item continues to change according to the dynamics of economic growth, improved living standards and increased demand.
Thus the interpretation of the articles on the above that dominated much thinking SEP. Thoughts on ESP, is a lot, but there are some that need to be discussed in detail because they are faunding father and economy figures who participated coloring our economic system, including:
a. Thought Mohammad Hatta (Bung Hatta)
Bung Hatta Proclaimers apart as leaders of Indonesia, also known as the formulator of article 33 of the 1945 Constitution. Hatta bung drafting article 33 is based on the bitter experience of the Indonesian people who for centuries ruled by foreign nations that embrace liberal-capitalistic economic system. The application of this system in Indonesia has caused misery and squalor, therefore according to the Bung Hatta good economic system to be implemented in Indonesia should family feels.
b. Thought Wipolo
Thought Wipolo delivered by Wijoyo Nitisastro debate on article 38 of the Provisional Constitution (article is identical to Article 33 of the 1945 Constitution), 23 september 1955. according Wilopo, article 33 SEP means strongly rejects the liberal system, therefore SEP also rejected the private sector is the driving The main liberal-capitalistic economic system
c. Thought Wijoyo Nitisastro
Thought Wijoyo Nitisastro was a response to the thought Wilopo. According Wijoyo Nitisastro, Article 33 UUD 1945 so interpreted as a rejection of the private sector.
d. Thought Mubyarto
According Mubyarto, SEP is not a capitalist economic system and socialist. One of the differences with capitalist or socialist SEP is a view of man. In a capitalist or a socialist system, humans are viewed as rational beings who have a tendency to fill the need for material.
e. Thought Emil Salim
The concept of SEP Emil Salim is very simple, the system of the market economy with the planning. According to Emil Salim, in system achieved a balance between a command system to a market system. "Typically an economic system depends closely with the ideology espoused the ideas of a nation".
Sumitro Djojohadikusumo in a speech to the School of Advanced International Studies in Washington, USA Date February 22, 1949, confirmed that aspired to the Indonesian nation is a kind of mixed economy. Certain business fields will be nationalized and run by the government, while others will continue to be located in a private business.
Indonesia's Economic Growth
Since independence in 1945, during the old order, the new order until the present (the reform) Indonesia has gained a lot of political and economic experience. The transition from the old order and the new order has provided a dynamic political climate although eventually lead to authoritarianism, but the economic life changed for the better.
1. Old Order (1945-1966)
At this time the economy is growing less encouraging, as a result of political instability and frequent change of cabinet.
2. New Order period (1966-1997)
Faced with such an economy, the transitional government set economic policy priorities steps as follows:
a. Combating inflation
b. Replenish stocks of food, especially rice reserves
c. Rehabilitating economic infrastructure
d. Increase exports
e. Provide / create jobs
f. Invited back foreign investors
3. Reform Period (1998-present)
In this reform period characterized by economic crisis monoter which continues to be an economic crisis that has yet to show signs of recovery towards. Although there is economic growth of around 6% for 1997 and 5.5% for 1998 where inflation is but inflation still high at around 100%. In 1998 almost all the sectors experiencing negative growth, it is different with economic conditions in 1999.
Factors Affecting Economic Growth in Indonesia
The factors that affect the growth of Indonesian economists, in general are:
1. Factors of production
2. Factors Investment
3. Factors foreign trade and balance of payments
4. Monetary policy and inflation factors
5. Factors of state finances