In my opinion, the best economic system in Indonesian country is using the Pancasila economic system, namely the economic system that takes good things from the capitalist and communist economic systems and discards the bad of both. The Capitalist economic system is Market Mechanism, that is, everything about the economy is left to the market. While the Communist economic system is a Centralistic economic system, that is, everything is regulated by the government. But in reality, today almost no country uses the economic system purely. Indonesia is more appropriate to use the Pancasila (mixed) economic system because there are still many Indonesian people currently below the poverty line. If Indonesia uses the capitalist economic system, it will impoverish the community. Most Indonesians have businesses that are still classified as small and medium enterprises that still cannot compete perfectly with large businesses. Therefore, the role of the government (Communists / Socialists) is needed to assist in regulating or providing policies so that the Industry can develop. In pure capitalism, the government is not permitted to do this, therefore pure capitalism cannot be applied in Indonesia. Market failures are still common, which can be caused by a lack of even information and accessibility to transportation and communication facilities. If the economy is left to the full market, then there will be a market failure that will make the economy worse. Economic problems such as inflation and high unemployment can arise and cause low economic growth and eventually poverty will occur. The role of government is needed in regulating the market.
The economic system in the Soekarno era
In the mid-1950s, the most powerful labor organization
was the SOBSI trade union federation, which was very close to the PKI. In 1957,
he claimed to have 2.7 million members. Because most large businesses and
industries are still large, the PKI and the SOBSI can request national permits
in their organizational campaigns. In 1957, General Nasution went to Washington
to request a loan of US $ 650 million for military assistance. The United
States rejects it; then he went to Moscow and received US $ 250 million in
credit from the Soviet Union. In 1958, Indonesia requested US military
assistance again and accepted it. The game of one party against the other is a
characteristic of Sukarno's presidency. In the 1960s, the economy deteriorated
due to political instability. They have a young and inexperienced government,
which has a poor and successful success. During the fall of Sukarno in the
mid-1960s, the economy was below the economy of 1,000%, shrinking export
revenues, destruction of infrastructure, factories operating at minimal
capacity, and investments that could be ignored. The nationalization of
Sukarno's business with the Netherlands opposed the economy more than helped
him. Civil servants and military officers who run companies on behalf of the
government need to be difficult to compete in the world market, and find
themselves tempted by corruption - which is preferred because those who get
smaller because of what works. Sukarno did not nationalize the entire oil
industry, but left critical operations in the hands of Caltex, Stanvac and
Shell.