Economy system is the System of National Economy of Indonesia, which has a principle of the family, popular sovereignty, moral Pancasila, and show genuine interest of the people’s economy.
Over prerequisite populist economic system based on social justice
- Sovereign in the political field
- Independent economic
- Personality in the field of culture
- Refresher economic nationalism against all forms of injustice and the system of economic policy
- Sustainable approach to development that multidisciplinary and multicultural
- Review of education and teaching science, economics and social sciences in schools and colleges
Bung Hatta in Daulat Rakyat (1931) wrote an article titled People’s economy in danger, while the Bung Karno 3 years earlier (August 1930) in defense in Bandung District Council economic destiny of the people writing the following:
“People’s Economy retracted monopoly system, and pushed completely extinguished (Sukarno, Indonesia Sue, 1930: 31)”
If we refer to the Pancasila state basis or on the provisions of Article 33 UUD 1945, then there is a popular word but must not be merely an adjective that means populist. The word democracy as the sound principle of the Pancasila should be written 4 full of populist, led by the inner wisdom of deliberation / representation, which means none other than the Indonesian-style democracy. So is the people’s economy (the system) of a democratic economy. The definition of economic democracy or a (system) of a democratic economy fully contained in the explanation of Article 33 of the 1945 Constitution which reads:
“Production is done by all for all inspection, under the leadership or community members. Prosperity of society that preferred not wealth individuals. So the economy shall be organized as a common endeavor based on the principle of the family. Build company that is in accordance with the cooperative.
Economy based on economic democracy, prosperity for all people! Therefore production branches are important for the control of the state and the people live must be controlled by the state. If not, the reins of production fell into the hands of the people in power and a lot of people ditindasinya.
Only companies that do not dominate the life of the people should have in the hands of individuals.
Earth and water and natural resources contained in the earth are the main points of the prosperity of the people. Because it must be controlled by the state and used for the prosperity of the people. “
It is unfortunate that the explanation of economic democracy is now no longer exist because the whole explanation of the 1945 Constitution the Assembly decided to remove the reasons naive, that difficult to accept, that “in other countries there is no Constitution or the constitution that use explanation.
The purpose of the application of the expected economy system
- Develop a berdikiari Indonesia economically, politically sovereign, and the personality that berkebudayaan
- Promote sustainable economic growth
- Encourage the equitable distribution of income of the people
- Increasing the efficiency of national economy
- Increased budget spending discipline with the main purpose of combating the practice of corruption, collusion and nepotism (KKN) in all its forms
- Abolition of monopolies through the organization of a fair competition mechanism (unfair competition)
- Increased allocation of revenue sources to local governments state
- Possession and ownership of agricultural land redistribution to peasants
- Cooperatives Act reform and the establishment of cooperatives “true” in the various efforts and activities of midwives. That need to be observed, increasing people’s welfare in the context of people’s economy is not based on the paradigm lokomatif, but the paradigm of the foundation.