Indonesian Socialism in the Constitutional Perspective

Abstract

This article describes the fundamental principles of the Indonesian economic system as envisioned by the nation's founding figures. Ekonomi Kerakyatan (Proletarian Economy) - a concept pioneered by Muhammad Hatta is a defining element of Indonesian democracy which emphasizes the community empowerment. This indigenous "third way" predates Giddens' notions, representing an authentic Indonesian form of socialism rooted in Pancasila, the nation's philosophical foundation. This people-centric economy was grounded in principles of cooperation and familial ties. Employing a qualitative approach, the paper delved into the definition and conceptualization of Ekonomi Rakyat within the Indonesian constitutional framework. It explored the evolution of economic legislation and its implications for national development. Furthermore, it discussed efforts to rejuvenate the concept of a people-centered economy within Indonesia's economic democratic framework and legal structure. The research underscored that Indonesia's intrinsic economic system had yet to be fully integrated into national legal frameworks, significantly affecting the nation's understanding of prosperity. The results also suggested the necessity of articulating this economic system within a robust legal framework, a process contingent upon political dedication to drafting and enforcing pertinent laws.