Definition of Economic Actors, Types, Roles, Interactions and Examples

Definition of Economic Actors

The definition of economic actors is all parties who carry out economic activities (production, distribution, and consumption), whether for individuals or organizations (government or private).

Parties that have a role, namely as economic actors, are households, producer companies, governments, financial institutions, and foreign communities. All of these parties have their own roles and influence each other in the economy of a country.

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Types of Economic Actors

Human life is inseparable from the existence of daily economic activities or activities in which all are involved in their respective roles. Below are some of the economic actors including the following:

Family Household (Consumer)

This family household is an economic actor whose scope is small, whether it's an individual or a group The next group consisted of aunts, grandfathers, mothers, children, uncles, fathers, grandmothers, to house assistants. stairs.

All households certainly need goods and services to fulfill their daily needs. To meet all the necessities of life, of course, the family household then spends its income to then buy all kinds of goods or services needed.

And to earn income, the family household group then utilizes their production factor, namely labor, to then be sold to company households.

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Household Production (Producer)

The company is an organization developed by a person or group of people with the aim of being able to produce all kinds of goods and services needed Public. In other words, the company is an economic unit established with the aim of producing goods and services in an effort to meet the needs of the community. To be able to produce goods and services, of course, input is needed, namely in the form of labor (HR), basic materials and materials assistants (SDA), then capital goods, such as the means of production which are then combined with production technology under the leadership of a entrepreneur

These production companies or households are all forms of business that run a business that has a permanent and permanent nature continuously to then gain economic benefits, and is also established, operates, and is domiciled in the territory of the country Indonesia.

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Financial institutions

These financial institutions are all parties who carry out financial activities or activities, both banks and non-banks, to then assist in improving the economy of a country.

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Government Household

This government is a party that has a very important role in the economy with its task of regulating and controlling the economy in a country with all kinds of economic policies to be able to prosper the citizens his country.

Some government policies in the economic sector include the following:

1. Forming fiscal policy, this is a policy related to state revenues and expenditures.
2. Making monetary policy, this is a policy related to regulating the amount of money in circulation in controlling the rate of inflation.
3. Making international financial policies, these are all kinds of policies in the financial sector related to the international world. For example, such as international trade and economic cooperation with other countries.

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Overseas Society or Household

Every region of the country everywhere certainly has geographical conditions and people who are also different. This then results in each of these countries having different natural and human resources.

The difference in resources then causes each country to have dependence on other countries because they cannot meet their own needs. That is why every country in the world then conducts foreign trade.

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The Role of Economic Actors

In this case, in general, the role of economic actors is as a driver of activities or activities production, distribution and consumption activities in realizing a prosperous, just and equally. And for more details will be described as follows:

1. Household

In economic activities, consumers or households have two roles, including the following:

As a consumer in goods or also products and services in meeting their needs.
As a provider of production factors, such as land or land, capital, raw materials, labor, as well as entrepreneurs (entrepreneurs). The role is as a provider of raw materials can or can be tangible by owning a field that is overgrown with many mahogany trees or also teak, then the wood is then sold to a furniture company so that it can then be processed into home furniture stairs.

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2. Company

Below is the company's role in economic activities or activities, including the following:

Buying factors from several production supports, for example: raw materials, capital, paying for labor and also entrepreneurs.
Managing or also combining factors of production in producing goods or services. Here the company then has a role, namely as a producer.
Selling goods or services which are then produced for households (consumers), people outside the region, government, foreign communities or others.
Responsible for the welfare of employees and also the community around the company environment.

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3. Government

The Government's Role is as follows:

1. The Government's Role as Producer

Below is the role of the government as a producer

As a producer, the government can or can act as a producer or also as a provider of public services for the community.

Below are examples of production results from government companies:

1. Petroleum operated by Pertamina
2. The health sector in the form of health centers and hospitals
3. Cement run by PT. Cibinong
4. Law and security in the form of police, military and judicial bodies badan
5. Steel run by PT Krakatau Steel
6. State School Education and State Universities (PTN)
7. Electricity is run by PT PLN Persero
8. Post run by PT POS Indonesia
9. The aircraft is operated by PT Dirgantara Indonesia

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2. Role of Government as Consumer

As a producer, the government of course then needs services or other goods produced by a company.

For example, like in an office, the government certainly needs production products such as cabinets, desks, and computers and stationery.

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3. Government as Regulator of Economic Activities

Not only being a producer as well as a consumer, this government also has a role as a regulator of economic activities or activities.

In this role, the government then has the right to issue regulations and policies related to economic activities or activities.

The regulations issued by the government of course refer to Pancasila as well as the 1945 Constitution and the outlines of the applicable State Policy.

Below are some examples of regulations from legislation issued by the government as follows:

1. UU no. 22 of 1999 whose contents are about Regional Autonomy.
2. UU no. 25 of 1999 which contains the financial balance between the central and local governments.
3. UU no. 27 of 2003 which contains about Geothermal.
4. UU no. 13 of 2003 which contains about Manpower.

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4. Overseas Society

The role of this economic relationship can then take the form of trade, employment, and capital.

Here's the explanation:

1. Trading

Cooperation with foreign parties can or can be in the form of trade, namely imports and exports. Example: China then exports the advanced technology to Indonesia. Then both parties will later get additional foreign exchange from these trading activities or activities.

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2. Labor Exchange

As we know, Indonesia has a lot of sending workers abroad. And each of these workers will provide foreign exchange for Indonesia. Apart from that, there are also many foreign workers who then work in Indonesia. And basically they work as experts in a particular company.

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3. Sources of Foreign Investment

One way to increase the prosperity of the people in a country is to make foreign investment (investment). For Indonesia, this investment is very profitable. Indonesia is then able to attract foreign investors, because labor in Indonesia is cheaper than in other countries. Moreover, Indonesia is a market nation because of its large population.

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4. Lender

In carrying out a development, of course it will require very large funds. Therefore, when the country is experiencing financial difficulties, the country will then borrow funds from other countries as well as international financial institutions.

Below are international financial institutions:

1. World Bank or World Bank
2. Asian Development Bank or ADB
3. Islamic Development Bank or IsDB
4. International Monetary Fund or IMF

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5. Helper

Assistance which is then given by people abroad is basically in the form of a development project physical or service activities or activities in cooperation with the local government. The aid is then given to countries in need free of charge.

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Activities of Economic Actors

Below are the activities of economic actors including the following:

Family Household (Consumer)

Below are some of the main activities or activities of the household including the following:

1. Get income from the company/producer in the form of salary, wages, interest, profit, and rent.
2. Earning income from the financial institution in the form of interest on their deposits.
3. Spend their income on the goods market.
4. Saving part of their income in a financial institution.
5. Paying taxes to the government.
6. Make purchases on the money market because they need cash to then shop for daily needs.

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Household Production (Producer)

Below are some of the activities or activities of a group of companies or producers including the following:

1. Produce products, be it goods or services, and also have a role, namely as an entry in the market for goods/services.
2. Utilize all kinds of production factors that exist in household consumption to then carry out the production process.
3. Apply for the working capital credit to financial institutions to then build or develop their business.
4. Determine the purchase of all kinds of capital goods and other stock items.
5. Paying taxes to the government on the sale of the goods it produces.

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Financial institutions

Below are some of the activities or activities of a group of financial institutions including the following:

1. Collect funds from all kinds of parties, be it consumer households or companies.
2. Provide business capital credit for companies/ producers in improving their production performance.
3. Providing demand deposits for financial transaction activities or activities.

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Government Household

Below are some activities or government activities in the economy including the following:

1. Collect direct taxes as well as indirect taxes.
2. Spending all government needs where the funds come from state revenue.
3. Make loans from abroad to then help finance development in the country.
4. Hire expert workers to then help with all kinds of government tasks and jobs.
5. Provide the needs of the type of currency for the community.

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Overseas Society or Household

Some of the activities or economic activities carried out by foreign communities include the following:

1. Provide the need for certain goods to be imported by other countries.
2. Carry out export and import activities or activities with other countries to equally meet the needs of each country.
3. Investing is by providing credit to be able to finance development activities or activities carried out by the government as well as the domestic private sector.
4. Entering the Indonesian money market is as a money channel, namely from abroad then requesting credit, as well as rupiah currency, which is for the needs of all their company branches located in Indonesia country.
5. As a liaison media for the domestic money market with foreign money markets.

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Interaction Between Economic Actors

In carrying out economic activities or activities, the four economic actors then interact with each other according to all kinds of transactions carried out. Family households buy goods and services from production households (companies) as well On the other hand, the production household (company) then buys the factors of production from the household family.

The company then pays taxes to the government and vice versa the government builds all kinds of things public facilities and infrastructure in the interests of family households as well as production households (company). Family households then production households (companies) as well as the government carry out activities or activities export activities abroad and vice versa from our foreign people also then import goods.

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Examples of Economic Actors

Based on the explanation above, examples of economic actors are as follows:

1. Family/consumer household economic actors
   An example is like people buying food at the shop
2. Household economic actors company/producer
   An example is like a chip manufacturer packing chips that they want to sell
3. Government household economic actors
   Examples are like tax collection by the government
4. Foreign household economic actors
   An example is the distribution of imported products from abroad

Thus the explanation of the Definition of Economic Actors, Activities, Types, Roles, Interactions and Examples, hopefully what is described can be useful for you. thank you