1. Understanding
Economic System
Some expert
opinions related to the economic system, among others:
a. Chester A Bemand said that: "The economic system is
an integrated entity that is kolestik in which there are the parts and each
part is it has the characteristics and limits tersendir"
b. Dumatry (1996) says that: "The economic system is a
system that regulates and economic relations between people with a set of
institutional endurance".
c. Gregory Grossman and M. Manu
says that: "The economic system is a set of components or elements comprising
the units and the economic agents, as well as economic institutions are not
only interrelated and interact but also to some extent mutually supporting and influence. "
d. According to M. Hatta:
"The economic system is good to be applied in Indonesia should be based on
the principle of kinship".
2. The elements
in the Economic System
a. Economic units such as households, firms, trade unions,
government agencies and other institutions related to economic activity.
b. Economic actors such as consumers, producers, workers,
invstor and related officials.
c. Environment Natural Resources (SDA) and Human Resources
(HR), Capital Resources (SDK), Resource Technology (SDT).
d.
3. Function
Element Economic System
The
functions to be performed during the economic activities, such as:
a. production functions,
b. consumption, distribution,
c. investment,
d. regulation
Results of economic activity depends on how the economic
system elements that perform its functions.
4. Purposes
Economic System
Objective
economic system of a country generally includes four main tasksa:
a. Determine what, how much and how the products and
services needed to be generated.
b. Allocate the gross national product (GNP) for household
consumption, public consumption, capital stock replacement, investment.
c. Distribute national income (PN), among the members of
society: as wages / salaries, corporate profits, interest and rents.
d. Maintaining and meningkatkann economic relations with
foreign countries.
5. Characteristics
of the Indonesian Economy
Indonesia as
a country keupulauan (archipelago) has special characteristics, which is
different from the neighboring ASEAN countries, even different countries of the
world so laindi economy has its own characteristics.
Characteristics that affect the Indonesian economy :
Characteristics that affect the Indonesian economy :
a. Geography
-
Indonesia is
the largest archipelago in the world, consisting of 13,677 islands large -
small (6,044 islands has a new name, including 990 inhabited islands);
stretching from 60LU until 110LS along 61 146 km., Has the economic potential
varies due to differences natural
resources, human resources, soil fertility, rainfall (Sutjipto, 1975).
-
Indonesia
covering an area of 5,193,250 km2 area, 70 percent (± 3,635,000 km2) consists of the oceans (be a maritime nation)
is strategically located because: it has a cross position (between the Asian
continent and the continent of Australia), a world traffic lane (between the
Atlantic Ocean and the Sea Pacific)
and into the lungs of the world (the largest tropical forest).
-
Dealing with
communication difficulties dann transportation between islands (regions) for
the transport of goods and passengers; flow of goods is not smooth; sharp
difference in the price of goods; differences in educational opportunities and
opportunities (field) work; struggle is a potential gap.
b. Demographic
Factors
-
Indonesian
state number 4 in the world because of more than 310 million people. Uneven
distribution of the population (two-thirds live in Java), most of whom live in
rural areas (agriculture), melting-eyed as small farmers and peasants burah
with very low wages.
-
HR Quality
Low: ± 80% SD educated workforce. Low
productivity due to the low living standards: the average consumption of the
Indonesian population RP 82 226 per month (1993), but 82% of the population
earn below the RP 60,000 per month per capita (Sjahrir, 1996).
-
Indonesia,
which has a population of over 210 million people in need of various goods,
services and facilities are large in size life (food, clothing, housing, etc.).
But
on the other hand our ability to produce (productivity) is low. This will
create the conditions for the emergence of poverty-prone.
-
Social,
cultural and political
Social:
Indonesian nation made up of many tribes (heterogin) with beraagam culture,
customs, values, religions and different beliefs. Because
of differences in background, knowledge and skills are not the same, then the
vision, perception, interpretation and response (actions) they are the same
issues can be different, which often lead to social conflict (SARA).
-
Culture: The
Indonesian people have a lot of local culture, but in fact we do not have a
national culture (except Indonesian). But
as one of the nation's "East" (an independent nation and build the
economy since the end of World War II), the majority of Indonesian people are
still unaffected (embrace) "culture" East, cultural orientation
status. Cultural
orientation status is characterized by: the spirit of pursuing hidupunya rank,
position, status (with social symbols); weak work ethic; happy to relax; levels
low discipline, lack of respect for the time (hours rubber). His
opponent "culture" western cultural achievement orientation with the
opposite characteristics
-
Political:
Dutch colonialists came before, the Indonesian people living under the rule of
kings. Hundreds
of Indonesian people living under the influence of feudalism and colonialism. The
main characteristic of feudalism, among others, is the cult of the individual
(king always honored). The
main characteristic of colonialism, among others, are authoritarian (like a
master to slave).
-
The remains
of the influence of feudalism (cult of personality) and the influence of
colonialism (otiriter) until now has not been washed away. This
is especially felt in the arena and the political upheaval in Indonesia. Behavior
that is less democratic than the political elite and the less respect the human
rights behavior of the authorities, the political hamper the democratization
process in Indonesia. This
in turn inhibits the creation of economic democracy.
-
From the
description of the influence of the above factors can disimulkan that the
Indonesian economy contains three potential vulnerability.
-
Three
potential vulnerability that became characteristic of the Indonesian economy
is:
-
Potential
rawann disparities, particularly disparities between regions (islands). This is
mainly as a result of the influence of geography.
-
Potential
vulnerable to poverty, especially rural poverty in the blood. This
is mainly as a result of the influence of demographic factors and cultural
factors.
-
Potential
prone to rupture, especially inter-ethnic divisions, sectarian (elite)
politics. This
is mainly as a result of the influence of socio-political factors