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In the last two years, the world economy witnesses three type of crises emerging, namely fuel, food, and financial crises. Facing this crisis, Indonesian economy should indeed be ready for any short-term and long-term shocks to maintain sustainability of its performance. Based on these situations, this paper is aimed to oversee the nature of financial crisis and its effect on Indonesian economy. The study in this paper indicates that current financial crisis is an undeniable evidence of capitalism failure mainly caused by its paradigm and basic ideas which neglect the humanity. For this reason, turning economics back to meet the human needs and its philosophy is urgently required. Indonesia is still affected by current financial crisis and it is an important moment to evaluate capitalism-oriented economic policies as well as to oversee its suitable nature economic system which is relevant to the way of its people life.

Keyword: financial crisis, Indonesian economy, market fundamentalism.

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