Indonesia has a complex economic system that includes elements of both socialism and capitalism. While it is officially classified as a mixed economy, many argue that the country leans more towards capitalism in terms of its economic policies and practices.

One of the key factors that contribute to Indonesia being considered more capitalist is its openness to foreign investment and trade. The country has a relatively liberal market economy that allows for competition, entrepreneurship, and private ownership of businesses. This has attracted foreign investors and multinational corporations to establish a presence in Indonesia, contributing to economic growth and development.

Additionally, Indonesia has implemented various economic reforms over the years to promote market-driven policies and reduce government intervention in the economy. This includes privatizing state-owned enterprises, deregulating industries, and promoting free trade agreements with other countries.

However, it is important to note that Indonesia also has socialist elements in its economic system. The government plays a significant role in the economy through policies and regulations that aim to promote social welfare, reduce income inequality, and provide basic services to the population.

For example, Indonesia has a social safety net in place that includes programs for poverty alleviation, universal healthcare, and education subsidies. The government also regulates certain industries to protect consumers, workers, and the environment from exploitation.

Overall, Indonesia can be seen as a country that combines both capitalist and socialist principles in its economic system. While it has embraced market-oriented policies to stimulate economic growth and attract foreign investment, it also emphasizes social welfare and government intervention to ensure equitable development and protect the interests of its citizens.