Page 10 - FLIP BOOK ECONOMIC PROBLEMS AND HOW TO SOLVE THEM BY SELA PUTRI AGUSTIANI
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If the price of goods in the market soars and there is scarcity, the government can
set a limit on the selling price.
Pros and Cons of a Mixed Economic System
The freedom of the private sector and the community in carrying out economic activities, as well
as supported by government policies, keeps the economy stable. In addition, the advantage of a
mixed economic system is that it increases the creativity of entrepreneurs or MSME players.
Even so, the government always tries to prevent business monopoly by the private sector. So, the
business competition remains healthy. What are the disadvantages? Hmm, unfortunately the
application of a mixed economic system is sometimes one-sided. If the government intervenes
too little, it allows the market or liberal economic system to prevail. Conversely, if government
intervention is too strong, it will lead to a command economy system.
Economic System in Indonesia
After discussing 4 economic systems, you must be curious, right, about what economic system
applies in our country? The answer is, Indonesia adheres to the Pancasila economic system
which is the development of a mixed economic system, but based on Pancasila and the 1945
Constitution.
Characteristics of the Pancasila Economic System
All economic activities are based on a sense of kinship.
The government controls important resources for the welfare of the people. For
example, electricity and air are controlled by state-owned enterprises.
Economic activities must be environmentally sound, so that there is no
exploitation of resources.
Pros and Cons of the Pancasila Economic System
First, every Indonesian citizen is given the right to be creative as long as they do not violate the
policies set by the government. Second, the economy is prioritized for the welfare of the people.
However, the Pancasila economic system also has weaknesses, such as decision-making that is
too slow because it must consider the common interest.
