The characteristics of the market economy system with the elements of planning

The characteristics of the market economy system with the elements of planning are
characteristics of the Pancasila economic system. Ideologically Indonesia
embracing the concept of economic democracy with the principle of fairy life
balance. The Indonesian nation is a nation that craves
harmony in life. Alignment between individuals and
society, between individuals and nature, individuals and their creators, and
harmony between the people of Indonesia and the people of the world.
The principle of harmony means rejecting the form of extremism. So, the system
the Indonesian economy can not take root in an economic system
command and liberal market economic system. Both forms of system
the economy does not contain within itself the element of harmony and
balance. The space of the Pancasila economic system tends to lie
midway between the command economy system and the economic system
market in a balance position.
Article 33 of the 1945 Constitution gives guidance regarding
the direction and scope of the type of economic behavior that needs to be developed
in Indonesia. The main behavior is expected to be held by the unit
cooperative economics. Economic behavior that controls the strategic aspect
for the state and society is expected to be held by the company
country. The rest, carried out by private economic units.
Economic development is the result of various merging efforts
factors of production, such as nature, labor, capital, and skills.
The pace of development is closely linked to the development of various factors
this production. The better and more and more production factors
successfully this factor is processed in economic activity, is increasing
also the pace of development.
Modernization of the economy in Indonesia, causing the emergence of industry
in society. To support the progress of industrialization in
Indonesia, please note the following points.

1. Capital
   Industrial capital in Indonesia has been open since its existence
   Foreign Investment Law in 1967 and
   The Domestic Investment Act of 1968.
   The entry of foreign capital to Indonesia is not always able
   profitable. Therefore, careful calculation is required,
   especially in its use so it can give birth to investment
   which corresponds to the planned targets.
2. Employment
   Indonesia has human resources reserves
   abundant for labor, but the problem is
   creating a ready-made workforce. That is, having
   adequate skills in their respective fields.