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Indonesian Economic System Analysis

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Indonesian Economic System and ASEAN Economic Community
(A paper compiled by Anthony Nicolas T. / 016201400018)

Economic system is a crucial thing in a state. Having a good economic system means that we have a good foundation and guidance in allocating and processing the resources in the state to do economic activity in order develop the state’s welfare in the main core. Once the state does not have a strong economic foundation then it will be danger for the state since the state will not know what to do to develop their economy to achieve the welfare. Indonesia is a state that adopting Pancasila as its economic system based on article 33 constitution 1945 verse (1) and (4).
Verse (1)
“The economy is structured as a joint effort based on the …show more content…

But in the development of the state, Indonesia economic system tended to lean on other economic system, based on some factors that influenced the economic system either from internal sector or external sector based on the development of the International economic activity. Indonesia economic development is divide into three eras which are old order, new order, and reformation era where each system has its own characteristics as described below:
A. Old Order
During the old order, Indonesian people were suffering from economic problems inherited by the colonialism. Economic condition was very ironic in that moment as described …show more content…

Currently President Jokowi succeed to invite more investors to come to Indonesia by making some visits to some states like Japan, Korea, and many more. Basically, there is no significant change in economic system during the reformation era compared to the previous era. But the economic system, Pancasila which tends to liberalism, is developing day by day. Indonesian economic system is now more open to the market and foreign investment which is proven by the increasing of the foreign investments especially during the current president, Joko Widodo.
The tendency of Indonesian economic system to be liberalist, starting from President Soeharto to open the market for the investors and privatize some state-owned companies, President Habibie who tried to industrialize Indonesia, President Abdurrahman who tried to build the cooperation with Israel, President Megawati who privatized Indosat, and President Yudhoyono and President Jokowi who try to gain more investors, has brought some development in Indonesia. The system of Pancasila allows Indonesia to be flexible to choose which side it wants to lean to, yet still uphold the values as mentioned in the article

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