BAHASA INGGRIS BISNIS 1

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.