Economy System in Soekarno Era

The economic system in the Soekarno era ran a Guided Economy system. In this economic system, the president was directly involved and regulates the economy. All economic activities are centered on the central government. As a result, economic activities in the regions have been disrupted and decreased. In the economic era, the Indonesian leadership repeatedly changed its economic design in line with the changing cabinet in power. In a guided economic system, economic behavior was determined by the government that makes decisions on most economic problems about what must be produced, how to produce it, and who consumes it. The guided economy system was shown by centralization of decision making. Government leaders as decision makers, centralized usually establish detailed and complex plans that provide economic command to all subordinates  and the people. Therefore, the command economic system was also called a guided economic system and a centrally planned economic system. Thus, in the command economic system, the government almost owns and controls all means of production (land or capital). In addition, the government also regulates the direct operation of all companies in various industrial sectors. So, the state was the employer of all work forces and determines how they should carry out their work. The government also determines the composition of the goods that must be produced and their distribution to all members of the community. Thus, in a command economy, the government was the holder of central decision making that answers the main economic problems through ownership and control of economic resources through the power to take and enforce decisions to members of the community.

The Best Economy System For Indonesia

In my opinion the best Indonesian economic system is a mixed economic system that implemented in 1998. Because in a populist economic system, it is people who hold active in economic activities, while the government creates a good climate for the growth and development of the business world. The characteristics of this economic system are: Relying on a fair market mechanism with the principle of fair competition. Able to realize environmentally sound and sustainable development. Guaranteeing equal opportunities in business and work. The protection of consumer rights and fair treatment for all people. And based on the characteristics of the populist economic system itself is more in accordance with those listed in the 1945 Constitution and also in accordance with the personality of the nation and the economy in Indonesia that does not adhere to and strongly reject liberalism, etatism, and unfair competition and concentration of economic power on one group in the form of a monopoly that harms society as in the previous Indonesian economic system, namely the economic system of democracy. The Indonesian state is considered less suitable to use a liberal economic system. Therefore according to experts using a mixed economic system is considered very appropriate. The Indonesian state uses a mixed economic system, because it is considered more suitable for a country that has a population below the poverty line which is still very high.