Reconstruction of Capitalist Management in Indonesia: Integration of Collectivism Values, Local Wisdom, and Sustainable Welfare Orientation

Abstract

The debate over the relevance of capitalism in modern management practices continues to rage, particularly in developing countries with distinct social and cultural characteristics from Western countries, the epicenter of capitalism's development. Indonesia, as a collectivist nation, faces challenges in adopting a capitalist management model that tends to be individualistic and profit-driven. This study aims to analyze the relevance of capitalist management in Indonesia, identify forms of capitalism that align with the characteristics of Indonesian society, and offer an integrative model of capitalism and local social values. The study employed a qualitative approach, employing literature reviews and conceptual analysis of the development of organizational management practices in Indonesia. The results indicate that capitalism remains relevant in increasing organizational efficiency, innovation, productivity, and competitiveness in the digital era. However, the implementation of pure capitalism has the potential to lead to social inequality, work pressure, exploitation of human resources, and weaken social solidarity. Therefore, organizations in Indonesia require a hybrid capitalist management approach that integrates profit orientation with humanistic values, collectivism, social responsibility, and environmental sustainability. This model is considered more appropriate to the character of Indonesian culture, which places a balance between economic interests and social welfare as a crucial part of organizational life.