Advantages And Disadvantages Of Market Model Of Indonesia

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Indonesia is a country that has great economic potential inside it; a potentioal that has been noticed by other countries because of the resources in Indonesia. It is one of Southeast Asia’s largest economies that rapidly showing signs of newly advanced economic development. The economic condition in develop countries including Indonesia cannot be separated from the influences like economic system and economic development pattern that has been applied, the development of physical infrastructure and social, and the development level that already achieved in the colonialism period.
Indonesia, as a country that had ever been colonized by four countries; Portuguese, England, Netherlands and Japan directly or indirectly surely get some influences from those
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This economic system wants individual freedom in the conduct of economic acitivity. Which is mean that everybody have their rights to admit their existence and freely compete each others. Adam Smith as the pioneer of this economic system mentioned that this market is to control the allocation of optimum resources to achieve a high level of economic growth through individual freedom. The market, according to Smith doesn’t need the plan or supervision from any party, either it is government or other institution, let it be just the way it is or what we are known laissez faire = Let it be.
There are some advantages and disadvantages by using this market model economy system. By using this market model it will foster inisiative and people’s creation in controlling economic activities. Furthermore, every individual deserve their own product resources and their compete each others to lead the economic. In addition, the goods that they produce have high quality because if it is not then nobody buys it. There is high efficiency and efectivities because every economic action is based on seeking

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