My opinion about the best economic system for Indonesia and the economic system in the Soekarno era

My opinion about the best economic system for Indonesia
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.