Economic Freedom in Indonesia: Challenges and Contemplations

Economic Freedom in Indonesia: Challenges and Contemplations

The concept of economic freedom is often discussed in the context of global rankings and international comparisons. However, in the case of Indonesia, it raises unique questions due to its constitutional and cultural framework. With specific national principles guiding economic organization, the country faces challenges that limit its economic freedoms. In this article, we will explore the reasons behind the lower levels of economic freedom in Indonesia, particularly in light of the nation's constitutional stipulations and the current political climate.

The Constitutional Framework: A Barrier to Economic Freedom?

Indonesia's constitution, which serves as the cornerstone of its legal and political system, outlines the principles of economic organization. Article 33 of the constitution is particularly relevant in this context, as it lays out the foundational principles of Indonesia's economic structure.

Article 33, Paragraphs (1) to (4):

The economy shall be organized as a common endeavor based upon the principles of the family system.

Sectors of production which are important for the country and affect the life of the people shall be under the powers of the State.

The land, the waters and the natural resources within shall be under the powers of the State and shall be used to the greatest benefit of the people.

The organization of the national economy shall be conducted on the basis of economic democracy upholding the principles of togetherness, efficiency with justice, continuity, environmental perspective, self-sufficiency, and keeping a balance in the progress and unity of the national economy.

These stipulations reflect a societal commitment to communal and state-controlled economic systems, which naturally diverge from more liberal and capitalistic approaches. This inherent tension between constitutional imperatives and market-based freedoms can create a complex environment for businesses and investors, hampering the development of economic freedom.

The Current Political Climate: A Dual Reality

Despite the constitutional framework, Indonesia currently faces a complex reality influenced by political dynamics. There is a notable contrast between the strong pro-Pengkuda Islam signals in the public and the quieter expressions of liberal values from the populace. This disparity is reflected in the behavior and priorities of the electorate.

Understanding Pro-Pengkuda Islam:
Islam Horsers, or Pengkuda Islam, are politicians who leverage Islam to further their ambitions for power. This strategy is most effective at the national level, where media and broader structures amplify their messages. At the grassroots level, personal experiences and familial well-being often take precedence over political agendas, leading to a more nuanced and context-specific political landscape.

The Implications for the Electorate:
In Jakarta, where the spoilt and more urbanized voters may have forgotten their roots, and the limited number of options available constrain their choices, the prevailing political climate can have a significant impact on who gets elected. While individuals might recognize the shortcomings of leaders, systemic challenges such as media narratives, social pressures, and the limited scope for grassroots influence can make it difficult for the populace to signal clearly for change.

Conclusion: Balancing Tradition and Modernity

The struggle between economic freedom and constitutional principles in Indonesia is a multifaceted issue that extends beyond mere economic analysis. It is deeply rooted in the cultural, political, and social fabric of the nation. As Indonesia continues to navigate this terrain, it is crucial to recognize the importance of balancing traditional values with modern economic policies that can foster growth and development.

Understanding and addressing these challenges is essential for policymakers and citizens alike. By promoting greater awareness and engaging constructively with the constitutional framework, Indonesia can work towards a more balanced and prosperous economic future.

Keywords: economic freedom, Indonesia, constitutional principles, pro-Pengkuda Islam, economic democracy