Indonesian Economic System

Indonesian Economic System



When discussing about the economic system in Indonesia , surely we would know that the economic system in Indonesia is experiencing a financial crisis since the commencement of the reform movement by opponents of Suharto . In ancient times , the interest rate is very low rupiah against the U.S. dollar , but at the moment the exchange rate against the dollar has increased so that the rupiah is not very valuable in the eyes of the world . Besides Indonesia's debt to western countries are very large making the Indonesian nation worse off . Each day will have to pay interest on the debt that is becoming increasingly accumulate . If this continues and is not addressed, then forced Indonesia to sell some islands to other countries to pay debts of the hundreds of trillions .

This is also compounded by the increasingly widespread corruption in government institutions . Government agencies that are supposed to be representative institution of the people exploited by certain elements to accumulate money on a large scale through the streets of corruption . Indonesia ranks 118 as the most corrupt countries . Corruption is detrimental to the state , money that should be used to pay the debt it used actors who are not responsible for their own gain .


Indonesian Economic System

This makes the increasing poverty in the country of Indonesia . Welfare of the people should be the responsibility of the government ignored its completion without any solution . For the banking problem , banking system in Indonesia is running stable . But the custom in Indonesia country that is still deeply ingrained is the presence of loan sharks or Debt Collector . Debt Collector to give a loan to someone but with very high interest rates .

This certainly will increasingly ensnare the poor as most of the borrowed money from the Debt Collector comes from the grassroots level or less capable . Indonesia has embraced a wide range of economic system but all the economic sitem not been able to fix the financial problems faced by the people of Indonesia . The economic system ever embraced by the people of Indonesia , among others :

Liberal Economic System
Liberal economic system ever adopted by Indonesia in 1950-1957 , or more precisely the economic system is an economic system that is embraced by the nation's first post- independence Indonesia . The economic system is embraced by the nation Indnesia in a very short period of time because it is considered not capable of fixing the financial problems faced by Indonesia when colonized by the Dutch and Japanese .
Economic System etatisme
In 1959 Indonesia Economic system switched from Liberal to etatisme Economic System . Indonesia adheres to the beginning of the economic system is derived from a presidential decree issued by president Soekarno on July 5, 1959 . Additionally Liberal economic system failures also become a consideration for Indonesia to move into the economic system etatisme . But as the Liberal economic systems , economic systems etatisme also considered not able to fix the financial problems in Indonesia . This is due to the existence of barriers to indigenous entrepreneurs to take over the company that has been left by the colonizers .
Mixed Economic System
Mixed economy system is often regarded as a framework or starting at the earlier economic system based on the values ​​of Pancasila . Mixed economic system embraced by the people of Indonesia began in 1967-1998 . This economic system is in Indonesia for a long time because it is considered able to control inflation or price spikes drastically goods and lasted continuously . At the time economic etatisme Indonesia adopts , a surge in inflation drastically up to 650 % per year . With the economic system of Mixed expected inflation crisis that hit Indonesia at that time can be reduced and minimized .
Pancasila Economic System
The development of a mixed economic system is a system of Pancasila economy considering a mixed economic system is regarded as pioneering a system of Pancasila economy . The reason for the change to the economic system of Pancasila is due to the financial crisis caused by the global economy at the time. This would have a negative effect on the economy of the nation Indonesia considering Indonesia is still in the category of developing countries and have not been able to become a developed country .

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