CHAPTER I

INTRODUCTION
A. Background
The current economic development has increased several percent. However,
economic development in Indonesia can not be separated from the many changes that
have been made and implemented in the economy in Indonesia. To the authors then
make a paper on "Economic Development in Indoneisia".
B. Purpose
The goals to be the writer explained, namely:
1. Definition of economic development
2. Kinds of Economic System in Indonesia
3. The economic development in Indonesia
4. Factors Affecting Economic Development in Indonesia
5. The problems faced by Indonesia in the development of the economy in Indonesia
C. Problem
How can economic history in Indonesia
1. What is the definition of economic development
2. What are the Types of Economic Systems in Indonesia
3. How Perkembanagn economy in Indonesia
4. What are the Factors Affecting the Economic Development in Indonesia
5. What are the problems faced by Indonesia in developing the economy in Indonesia

CHAPTER II
DISCUSSION
1

A. Definition of economic development

The term is often mixed blend economic development with economic growth,
and pemakaiannnya always changing, so it looks understanding between them being
equal. However, some economists, such as Schumpeter (1911) and Ursula Hicks
(1957) has attracted a common difference between terms of economic development
and economic growth (competition, 1993). According to the experts the economic
development refers to the problems of the underdeveloped countries, while economic
growth refers to the problems of developed countries. Similarly, according to
Maddison (1970), he said that in developed countries the increase in the level of
income is usually called economic growth. Whereas, in poorer countries it is called
economic development. But there are also other economists who think that the
economic growth is synonymous with economic development, such as the opinion of
Arthur Lewis (1954), as well as Egypt and Baldwin (1973).
B. Kinds of Economic System in Indonesia
1. Capitalist Economic System
According to Sanusi (2007: 14), the capitalist system is an economic system
in which wealth is mainly privately owned productive and production is mainly
carried out for sale.
2. Socialist Economic System
Dumairy explained, a socialist economic system is the existence of various
mechanisms distorasi in the market has made it impossible to work efficiently,
and that the system is not an economic system that does not take seriously the role
of capital.
3. Mixed Economic System
Sanusi explained in a mixed economic system in which power and freedom
are running simultaneously, although in different levels. There is also a mixed
economic system in which the role of government power is relatively large.

C. The economic development in Indonesia

The economic development of Indonesia is now optimistic that economic
growth increased. With the growth and increasing national income we can see the
development and progress in other countries. With the national income per year
Indonesia is able to provide progress. Macroeconomics is very influential in the
current economic growth, one of the economic growth that can be seen by the
2

domestic demand will be the main pillar of economic performance. In addition,

exports and imports and investments also affected.
In view of the very few in the banking sector's macro economy we can feel
the increased economic growth. Bank Indonesia (BI) predicts economic growth
throughout the first quarter of 2013 will still grow high, ie in the range of 6.4 percent.
So far this year, the Indonesian economy is projected to grow in the range of 6-6.5
percent.
Governor of Bank Indonesia Nasution revealed it in a meeting with Commission XI
(in charge of financial and banking) parliament, on Monday (14/2). "The outlook for
the economy will continue to improve and is expected to be higher," Nasution said.
He said domestic demand will remain the main pillar of economic performance. In
addition, exports and imports, as well as investment, will also grow rapidly. He added
that Indonesia has been through challenges in 2010. With significant economic
growth in the last year, namely 6.1 percent, will be easier to achieve the growth target
in 2013. However, still high inflation will be a serious challenge in this year.
D. Factors Affecting Economic Development in Indonesia
1. Natural factor
Natural factors very big influence on economic development in Indonesia,
especially the position of the State of Indonesia said fertile and have great natural
resources. Lam resources, such as soil conditions, soil fertility, kondidi Ikim and
the weather, and the natural resources of a country
2. Factor Technology
Technology is a reference in the classification of a State against the
classification developed or developing countries. Advanced countries tend to use
advanced technological equipment, while developing countries tend to be more
didom, inasi with the traditional things. It can be seen from the infrastructure of a
region or sophisticated goods that exist dala an enterprise.
3. Culture Factor
Culture also determine the extent to which economic perkembangn in
Indonesia, misalny custom and ability in managing a business.
4. Factor Quality of Labor
The higher the quality of the workforce of a country, the more rapid economic
development of a country and the country will not add foreign labor again.
E. The problems faced by Indonesia in the development of the economy in
Indonesia
1. Unemployment
3

This is a classic problem that has not been resolved completely. From year to
year the number of unemployed in Indonesia is growing. Government efforts to
create jobs have not been able to resolve this issue.
2. The High Cost Economy
It is also a classic problem in the industrialized world. There are many things
that lead to high production costs. Among them is extortion / bribes is not only
done in secret but not infrequently done openly.
3. Economic Regulation
Several times the government issued a decree on the regulation of the
economy which is not considered appropriate for the Indonesian economy.
4. Scarcity Staples
Market operations are often done by the government when food prices started
to move up certainly does not help resolve this problem. Scarcity of basic
commodities is a problem that is very common in regions outside Java due to
technical reasons such as transportation.
5. Higher Interest Rates Banking
The interest rate is one indicator of healthy / absence of Indonesia's economy.
Interest rates are too high or too low will affect the economy.
6. The high value Inflation
Inflation would be devastating for a country's economy, including Indonesia.
In Indonesia alone, the inflation rate is high and many subsequent economic
problems that occur due to this inflation. In addition, inflation in Indonesia is very
'sensitive' easy ride. For example, although only influenced by the high price of
cayenne some time ago.
BAB III
PENUTUP
A. Conclusion
The economic development in Indonesia are relatively stable today. It can be
seen from the statement of Bank Indonesia (BI) stating THAT the economic
development of Indonesia that has passed the challenge in 2010. For subsequent years
Indonesia will experience economic growth even though little by little. However, we
must also be careful that inflation premises at any time will be struck.

B. Suggestion

The economic development in Indonesia has reached a stable level and is

expected to increase every year. We also as young people need to participate in
economic development in Indonesia, such as by setting up labor-intensive industries.

BIBLIOGRAPHY
Fahri, An Economic Khoerul.2009.Pengembangan Negara.Bandung: Algensindo
Tata, Hesana.2004.Pendidikan Ekonomi.Bandung: Algesindo
Nana, Economic Dila.2003.Belajar Menyenangkan.Jakarta: Inandra publishe

MAKALAH
PERKEMBANGAN EKONOMI DI INDONESIA
DALAM BAHASA INGGRIS

Disusun Oleh :
Nama

: DESIANA. NAUW

NIM

: 1660201009

Jurusan

: Ekonomi Pembangunan

Semester

: I (Satu)

Dosen Pengajar : Mikha Tati Yuki, S.Pd, MM

SEKOLAH TINGGI ILMU EKONOMI (STIE) BUKIT ZAITUN

TAHUN AKADEMIK 2016/2017
[

FOREWORD

Praise the author turning to the presence of God Almighty because trahmat say: His
gift paper and Economic Developments in Indonesia can be completed on time.
The author would like to thank all those who have helped in the process of making paper in
Indonesia's Economic Development. The author realized in paper Economic Development in
Indonesia is far from perfect.
Therefore, the authors expect criticism and suggestions from readers. End the authors
expect Papers Economic Development In Indonesia, this can be useful for the readers.

Sorong, December 7 2016

DESIANA. NAUW

TABLE OF CONTENTS
i
FOREWORD...............................................................................................................

TABLE OF CONTENTS.............................................................................................

ii

CHAPTER I INTRODUCTION.................................................................................

A. Background...................................................................................................
B. Purpose..........................................................................................................
C. Problem Formulation.....................................................................................

1
1
1

CHAPTER II DISCUSSION.......................................................................................

A.
B.
C.
D.

Definition of economic development............................................................

Kinds of Economic System in Indonesia......................................................
The economic development in Indonesia......................................................
Factors Affecting Economic Development in Indonesia...............................
8

2
2
3
3

E. The problems faced by Indonesia in the

development of the economy in Indonesia....................................................

CHAPTER III CLOSING...........................................................................................

A. Conclusion.....................................................................................................
B. Suggestions....................................................................................................

5
5

BIBLIOGRAPHY.......................................................................................................

ii