Economic democracy

In the context of the first long-term development cycle (1969- 1994), the matter of the implementation of the principles of economic democracy contained in Article 33 of our Constitution has been a frequent subject of discussion among economic observers and legal experts.

This is caused among other things by the existence of different interpretations. Therefore the general impression has been that those principles are not entirely being put into practice. It is often said that a shift has occurred in the interpretation of our principles of economic democracy, which dictates that a state of welfare should be attained for all.

Such differences in interpretation are made possible by the fact that there are no clear-cut formal definitions of what we understand by the phrase "fields of production that are important to the state and control the livelihood of the people". It is generally understood that these sectors, whatever they are, must be controlled by the state.

It is odd that although we are against the system of free- flight liberalism because it is contrary to our principles of economic democracy, we do not have any law capable of countering the tendency for economic power to become concentrated in the hands of individuals.

At present it is becoming more and more unclear which "fields of production that control the livelihood of the people" must be controlled by the state and which ones can be run by private business.

-- Suara Pembaruan, Jakarta