Mixed economic system is a system that shows the role of government and private sectors in overcoming the economy problem so it does not happen in full mastery of a group of people over economic resources. Mixed economic systems are also referred to as economic democracy, welfare state, or Keynesianism.

The characteristics of mixed economy system are as follows:
a. The private companies also engage in economic activities, but the sectors concerning the livelihood of the people is managed by the government.
b. Most interactions occurred in the market economy, but the government still intervened with its economic policies. For example to protect consumers, the government is using pricing policies on (ceiling price). To protect the manufacturers, the government is using the basic price policy (floor price). Thus, government intervention do to make healthy economic life, prevent monopoly, and prevent and overcome if the economic crisis.
c. The existence of competition in economic activity, but does not lead to adverse competition because the government monitored.

In economic democracy must be avoided negative traits following:
a. System of free competition. This system shows the exploitation of humans and other nations. In addition, this system will lead to weakness in the structure and maintain the position of Indonesia in the world economy.
b. Etatisme system. This system provides an opportunity for the state and its apparatus is dominant. In addition, the system is urgent and deadly potential, creativity, and initiative of economic units outside the state sector.
c. Monopoly and unfair competition. Concentration of economic power in the form of monopoly should be avoided because it can harm the community. In addition, it will also lead to economic inequality.

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The economic system is a system that regulates economic life, in order to achieve a desired goal. Each country has different ways to regulate its economic life, it depends on the philosophy and ideology that was followed.

Kinds of economic systems in the world of various kinds, some of them:
a. Liberalism or economic system of capitalism, namely an economic system which gives full freedom to every individual to compete to pursue profit maximization. In this economic system is very dominant role of capital owners.
The characteristics of the liberal economic system are as follows:
1. each individual is free to have the factors of production.
2. each individual’s free choice of employment.
3. each individual is free to enter agreements.
4. government indirectly regulate economic life.
b. Economic system of socialism, namely an economic system that held and controlled by the state. The intention is that the government owns the economy to provide welfare to the community.
The characteristics of the economic system of socialism, including:
1. no freedom for the individual in the attempt.
2. economy is controlled and regulated by the government.
3. individual property rights over capital and means of production are not recognized.

c. Mixed economic system, namely an economic system is a combination of the economic system of liberalism with socialism. In this economic system that plays there are two sectors, namely the state sector and private sector. This economic system is often found in countries that are developing.
The characteristics of mixed economic systems are:
1. government is active in economic activity.
2. state control of the branches of production that dominate the life of the people.
3. private ownership of the means of production are recognized.

Mixed economic system is an economic system that combines the good characteristics of a market economy system and centralized economic system.

The characteristics of mixed economic system as follows:
a. Government participates directly in the economy.
b. The government’s role is to create economic policies such as monetary and fiscal policy.
c. Government to make rules or law.

Judging from the size of the government’s role in the economy, mixed economic system can be grouped into three, as follows:
a. A balanced mix of economic systems. This happens when the government’s role in the management of the economy comparable to the role of the private sector.
b. Mixed economic system is biased toward liberals. This happens when the government’s role in managing the economy is smaller than the private sector role.
c. Mixed economic system is biased toward a socialist. This happens when the government’s role in managing the economy is greater than the private sector role.