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Pancasila economics is an economic system that is based on five principles in Pancasila. The term "Pancasila economy" first appeared in an article by Elim Salim in 1967.
Contents
In essence, a Pancasila economy is an economic concept that tries to avoid pendulum-like swings from one extreme (a Free Market economy) to the other (socialism). In simple terms, a "Pancasila economy" can be described as a market economic system with government control or controlled market economy. A Pancasila economy can be considered an example of a mixed economy system or a third way economic system.
Pancasila economy is claimed to a neoclassical approach promoting individualism and free markets that is adapted the values of Indonesian society, including religious values, culture, customs and norms.
Characteristics
The five basic characteristics of the economic concept of Pancasila are:
The Pancasila economic system has significant differences from liberal economic systems. It is oriented to the common people. Pancasila is also different from socialim, which does not recognize individual ownership.
Indonesia
The Pancasila economy system has been practiced significantly in economic development policy since Indonesian independence.
The principles of Pancasila economy were mandated by the Indonesian Constitution 1945. These include humanity, economic nationalism, economic democracy and justice.