Since the founding of the Republic of Indonesia, many state leaders when it has formulated the proper shape economy for Indonesia, both individually and through group discussions. For example, Bung Hatta himself, during his lifetime he had the idea that the fundamental economy of Indonesia in accordance with the ideals of mutual help is cooperative, but not necessarily all economic activities should be done in a cooperative, forcing it actually violates basic forms of economic cooperation.

Similarly, the Indonesian economy figures at the time, Sumitro Djojohadikusomo, in a speech in the country the United States in 1949, insists that he aspired was sort of mixed economy. However, in the subsequent development of agreed upon a new economic shape of which is named as an Economic System Pancari that contain essential elements and called Economic Democracy.

Despite a history that will tell the real situation ever happened in Indonesia, according to the 1945 Constitution, the economic system is reflected in the articles 23, 27, 33 and 34.
Economic democracy chosen because it has positive traits are:
1. The economy is structured as a joint venture based on the principle of kinship
2. Branches of production that are important to the State and welfare of the majority controlled by the state
3. Earth, water and the natural riches contained therein shall be controlled by the state and used for the prosperity of the people.
4. Simber-state financial resources and wealth are used to plot people's representative institutions, as well as monitoring of existing policies on representative institutions as well.
5. Citizens have the freedom to choose a job that you want and have a right to employment and decent living
6. Individual property rights are recognized and their use should not be contrary to the public interest
7. Potential, initiative and creativity of every citizen is developed entirely within the boundaries of which are not detrimental to the public interest
8. The poor and abandoned children dipeihara by country
Thus in the Indonesian economy was not allowed any:

Free Fight Liberalism, namely the freedom of businesses that do not control that allows the exploitation of the economically weak, with the result of increasing the breadth of the gap of the rich and the poor.

Etatisme, the participation of government that is too dominant so deadly motivation and the creation of communities to develop healthy competition.

Monopoly, a form of concentration of economic power in a particular group, so it does not give the consumer another option to not follow the wishes of the monopoly (Monopolist)

The economic system that never embraced by the nation of Indonesia, among others:

Liberal Economic System
Liberal economic system ever adopted by Indonesia in 1950-1957 or rather the economic system is an economic system adopted by the nation's first post-independence Indonesia. The economic system embraced by the nation Indonesia in a very short period of time because it is considered not capable of fixing the financial problems faced by Indonesia when colonized by the Dutch and Japanese.

Economic systems etatisme
In 1959 Indonesia switched from Liberal to Economic System Economic etatisme. Indonesia adopts the beginning of the economic system from a presidential decree issued by President Soekarno on July 5, 1959. Additionally Liberal economic system failure also became a consideration for Indonesia to move into the economic system etatisme. But as Liberal economic system, economic system etatisme also considered not capable of fixing the financial problems in Indonesia. This is because the barrier for indigenous entrepreneurs to take over the company that has been left by the colonizers.


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