ECONOMY SYSTEM IN SOEKARNO ERA
In the era of guided democracy,
President Soekarno run Guided Economy system. In this economic system, the
president was directly involved and regulating the economy. All economic
activities centered on the central government. As a result, economic activity
in the area to be disturbed and decreased. In the planned economy era Idonesia
repeatedly change the design of its economy with every passing incumbent
cabinet.
When the Indonesian government guided
economic adheres menumpuh inward wisdom '(Inward-loking police). This policy is
characterized by wisdom "Self-Reliance" (standing on their feet), and
wisdom were very restrictive, and then refused altogether investment
asing.Selama this period many overseas trade controlled by the Indonesian
government, either for short-term considerations on the balance of payments (by
limiting imports to offset the current account deficit) as well as non-economic
considerations.
Indonesia to develop indigenous
entrepreneurship and put important economic activity under national control in
1950 the government introduced the fort Program aimed at providing commodities
of import licenses for certain commodities only to Indonesian citizens. These
programs lead to large-scale corruption and seriously disrupt the political practice
as each party tries to obtain the results and only slightly efektik encourage
the growth of entrepreneurship. Many Indonesian entrepreneurs who sell their
licenses to importers of Chinese and Dutch, and Indonesian entrepreneurs was
only pretending to appear on the face of business. The company group commonly
called the company "Ali Baba".
The export volume of commodities
premiere Indonesia has grown fairly in the early 1950s, even exceeding the
level of volume that has been achieved in the late 1930s, Indonesia hardly
participate daam expansion of world trade that has occurred during the 1950s
and 1960s -an. Even during the period of 1953-1966 the volume of Indonesian
exports only grew by an average of one per cent in one year. The decline of the
role of foreign trade during the early 1950s were mainly due to production
equipment export industries Indonesia has suffered a lot of damage. This is the
result of the efforts President Sukarno who did not want in aid by Western
countries.