Economy System in Soekarno Era

          In the era of guided democracy, President Soekarno runs guided economic system. In the mid-1960s, the political situation and the economy in Indonesia were in the disaster. After independence in 1945 (and termination of a conflict with the Netherlands in 1949), this young country beset with internal politics are dangerous because some political forces – including the military, nationalist, Islamist, parties and Communist-mutual opposite each other. For a decade, Sukarno, Indonesia's first President, enough success to stem the threat from these forces. The Indonesian economy quickly deteriorated due to debt and inflation, while exports weakened. Foreign exchange eamed from the country’s plantation sector fell from USD $442 million in 1958 to USD $330 million in 1966. Soekarno implemented the command economy system as applied especially in the flow of Communist countries. Indonesia’s economy is very bad caused by political instability in the country wich is reflected, among others, by the occurrence of some rebellion in a number of areas. The peak of the economic devastation Indonesia happened in 1966 toward the and of a long period, i.e. the occurrence of hyperinflation which reached 650%.

The Best Economy System for Indonesia

Indonesia is a country that is very rich in its natural wealth, but Indonesia still cannot be called an advanced country because there is still a lack of knowledge for processing its existing wealth. Indonesia has done various economic systems both from a liberal economic system, an economic system of etatism, a mixed economic system and a Pancasila economy. But in reality Indonesia is still classified as a developing country. Now, which economic system is suitable for Indonesia? In my opinion the economic system that is suitable to be applied in Indonesia is the Pancasila economic system. The reason is because the economic system is based on ideology of the Indonesian nation which isPancasila. So the Pancasila is not only an ideology, but there is an application and goals to achieve in that ideology. The economic system must be oriented to the God (the enactment of the ethics and morals of religion rather than materialism), Indonesian union (togetherness, nationalism and democracy in the economy), popularism (which must prioritize people's economic life), and social justice (hence the main prosperity of society is not individual prosperity). If this system is carried out properly by the government and the community, prosperity will be seen, but in reality there are still many elements of the government that can not be trusted, so are the people. They still against our ideology sometimes. It needs a high awareness of both the government and the community to achieve the goals of a country.