Indonesia’s socio- political transformation toward democracy system within decade should stimulate on its people socio- economic mobility mindset. Democracy is associated with higher human capital accumulation, lower inflation, lower political instability, and higher economic freedom. Indonesia’s abundance of production factor must be driven by high qualified human capital to reach its national economic development.
The accumulation of factors of production cannot alone explain economic development. They are necessary input in production, but they are not in themselves sufficient for economic growth to occur. Human creativity and productive entrepreneurship are needed to combine these inputs in profitable ways, and hence an institutional environment that encourages free entrepreneurship becomes the ultimate determinant of economic growth.
Challenging economic fundamental principles like equilibrium models, rational agent, by applying insight from other disciplines like theoretical physics or quasi empiricism mathematics might be the way forward of an entrepreneurial economics. The reform of Indonesia’s democracy should facilitate the distribution of education chance and better information access.
The sustainability of Indonesia’s economic development within global competition lies on the current local business player’s adaptability toward future competitive economic change, thus the young knowledgeable entrepreneur should take center stage in any effort to explain long- term economic development.
Submitted to :
IICIES Call for Papers 2010, The 2nd Indonesia International Conference on Innovation, Entrepreneurship, & Small Business, Universitas Multimedia Nusantara, Serpong, Tangerang.
Written by :
Galih Prasetya Utama ( working paper for company internal affair)
Literacy Based on :
Primary Data Based on :
Working Research ( Company Database)