COMPARISON OF ECONOMIC SYSTEM BETWEEN INDONESIA AND

SWEDEN

CHAPTER I
INTRODUCTION

1.1 Background
Economy is an inseparable part of human life. The economy also has an
important role to maintain the stability of the life of the nation and state. The level
of growth and development of a country can be seen from its economic indicators.
Each country, in achieving its goals, uses a different economic system. The
economic system is one of the tools to achieve the common life goals of a nation or
state. When comparing the existing economic systems, it has been seen that each
economic system has very contrasting differences. However, among these
differences there is one a very striking similarity, namely that every economic
system is structured to achieve a glorious final goal. The final condition is an ideal
human civilization, in which humans, both as individuals and as a group, enjoy
wealth, justice, prosperity and complete independence. Therefore, if all economic
systems have the same goals, of course all economic systems must be assessed with
uniform criteria. Thus, the assessment will be very objective.
A good economic system is an economic system that is able to deal with
uncertainty. Every government in the world, including the governments of
Indonesia and Sweden, have different strategies to achieve their goals, although
basically the goal of each country is the same, namely to improve the nation's
standard of living by increasing the economy as much as possible. The global
economy in its current development towards trade transactions between countries
is experiencing a shift in outlook. This is used by countries in the world, both
developing and developed countries. The increase in the domestic economy of a
country can be reflected in the economic development which has increased which
is marked by increased economic growth. As a good citizen of Indonesia as well as
a student of Sultan Ageng Tirtayasa University, it is very important to understand

1
Economic System in the country of Indonesia, as well as its comparison with the
Economic System of the Sweden.

The conclusion that can be drawn from a comparison of the economic

systems between Indonesia and Sweden is that the goals of the economic system
are the same, because they both have the goal of state responsibility for the welfare
of its citizens. Indonesia and Sweden have a similar economic system which is
designed as a Welfare State. The welfare state is briefly defined as a country where
the state government is considered responsible for guaranteeing a minimum
standard of living welfare for every citizen.
Indonesia as a developing country with a welfare state system with a
minimalist model still provides very minimal benefits for its citizens. Thus, the
community should not continue to rely on assistance and depend on the government.
The responsibility for personal well-being lies with each individual, without relying
on government assistance which is still undermined by corrupt acts. In fact, if the
government does not only focus and prioritize the national social security system
on health, which in fact is still in need, the government should also focus and make
effective the improvement of the quality of human resources first, namely by
improving and building the moral and mental aspects of the people.
Therefore, efforts are made to increase the quality of human resources
through the level of education and this should be considered and prioritized to be
the main focus of the government. Because it is from the world of education that
human morals, mentality and morals are formed, so as to produce human beings
who are educated and have high ideals and are anti-corruption. Looking at the
powerlessness of this government, it gives a signal that the state is not yet ready to
answer and embody the concept of a welfare state even with a minimal model.
Unprepared the state precisely in its human resources who are mentally corrupt and
still use social security policies for political purposes only.