Pancasila Economy: Forgotten Dream or Weapon Against Inequality?
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Published:
Jul 5, 2025
Keywords:
Economic justice, Empowerment, Micro enterprises, Pancasila economy, Sustainability
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Abstract
Purpose: This study investigates strategies to integrate the foundational values of Pancasila into Indonesia’s economic system, with a focus on strengthening the people’s financial sector and reducing reliance on dominant capital groups.
Study Design/Methodology/Approach: The research applies a library-based methodology, drawing from both classical and contemporary literature. It synthesises theoretical perspectives into an integrative framework that reflects the philosophical and socio-economic dimensions of Pancasila.
Findings: The analysis reveals that the Pancasila economy offers a concrete alternative to prevailing models marked by inequality and exploitation. When policies reflect Pancasila principles through asset redistribution, support for micro and small enterprises, and governance that prioritises community welfare, Indonesia can reduce internal disparities while offering a globally relevant model of inclusive development.
Originality/Value: With consistent and determined implementation, the Pancasila economy can redefine development paradigms by promoting human dignity, inclusive empowerment, long-term sustainability, and equitable prosperity. This model illustrates that ethical foundations and social justice can coexist with economic advancement.
Article Details
How to Cite
Suud Sarim Karimullah. (2025). Pancasila Economy: Forgotten Dream or Weapon Against Inequality?. Jurnal Lemhannas RI, 13(1). https://doi.org/10.55960/jlri.v13i1.1023
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References
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Rizki Aris Suseno, W., Sri Umi Mintarti Widjaja, & Sugeng Hadi Utomo. (2022). Internalization of The Economic Morality Of Pancasila in Economic Behavior on Economic Education Master Students in Universitas Negeri Malang. International Journal Of Humanities Education and Social Sciences (IJHESS), 2(1), 73–84. https://doi.org/10.55227/ijhess.v2i1.211
Sahab, A., Nauvarian, D., Larasati, N. D., & Hennida, C. (2024). Indonesian foreign investment policy under oligarchic economy: striking balance between economic nationalism and liberalization. Journal of the Asia Pacific Economy, 1–19. https://doi.org/10.1080/13547860.2024.2361575
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Suyahman, S., Karimullah, S. S., & Syahril, M. A. F. (2025). Intersectionality in Social Justice: Unpacking the Complexity of Oppression. Jambura Law Review, 7(1), 275–308. https://doi.org/10.33756/jlr.v7i1.27828
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Zulkarnaen, Z., Maisaroh, M., & Izmuddin, I. (2024). Islam and Pancasila Democratic Economics: Islamic Criticism of Capitalist and Socialist Economic Thought. Proceeding of The International Conference on Business and Economics, 2(1), 94–108. https://doi.org/10.56444/icbeuntagsmg.v2i1.1606
Baswir, R. (2024). Peluang dan Tantangan Pengamalan Pancasila Dalam Bidang Ekonomi. 4(1), 1–9. https://doi.org/10.52738/pjk.v4iX.523
Budimanta, A. (2024). Struktur Ekonomi Pancasila (Pancasilanomics). 4(1), 1–27. https://doi.org/10.52738/pjk.v4iX.522
Guritno, B., Dewi, R. S., Arianti, F., Utama, A. S., Norvadewi, N., Anggara, O., & Andiyan, A. (2023). Culture of Islamic economic principles and democracy and welfare based on Pancasila Ideology. Journal of Intercultural Communication, 23(1), 55–65. https://doi.org/10.36923/jicc.v23i1.43
Harefa, A., & Harefa, J. E. (2024). Implementation of Pancasila Economic System Based on Sustainable Development Based on Kinship. Advances In Social Humanities Research, 2(7), 954–966. https://doi.org/10.46799/adv.v2i7.275
Karimi, S. (2024). Sistem Ekonomi Pancasila, Keadilan Sosial, dan Neoliberalisme Global. 4(1), 1–10. https://doi.org/10.52738/pjk.v4iX.526
Karimullah, S. S. (2022). Moral Values Internalization of Pancasila in the Education System: A Response to the Problems of Radicalism. Technical and Vocational Education International Journal (TAVEIJ), 2(01), 32–38.
Karimullah, S. S. (2023). Actualization of Pancasila As an Integrative Paradigm in Forming Imagination and Creativity. Pancasila: Jurnal Keindonesiaan, 3(1), 11–21. https://doi.org/10.52738/pjk.v3i1.141
Kian, L., Purwanti, A., & Sabri, M. (2021). Internalisasi dan Instansionalisasi Kebijakan Ekonomi Pancasila. Pancasila: Jurnal Keindonesiaan, 1(1), 45–56. https://doi.org/10.52738/pjk.v1i1.23
Kim, M. S. (2024). Agonizing Pancasila: Indonesia’s state ideology and post-foundational political thought. Journal of Political Ideologies, 1–23. https://doi.org/10.1080/13569317.2024.2408230
Liddle, R. W. (2013). Improving the quality of democracy in Indonesia. Indonesia, 96, 59–80. https://doi.org/10.1080/00074918212331334140
Lital, H. N., & Utama, Z. M. (2023). Implementation of Islamic Economics in Indonesia as a Form of the Pancasila Economic System. In Islamic Economic Institutions in Indonesia: Are they Successful in Achieving the Maqasad-al-Shari’ah (pp. 43–57). World Scientific. https://doi.org/10.1142/9789811272691_0003
Meliala, A. J., & Woods, J. A. (2022). The History of Indonesian Economic Law. International Conference on Law Studies (INCOLS 2022), 219–236. Atlantis Press. https://doi.org/10.2991/978-2-494069-23-7_21
Mubyarto, M. (1999). Sistem dan politik ekonomi berjiwa kenyataan. Economic Journal of Emerging Markets, 4(2), 121–125. https://doi.org/10.20885/ejem.v4i2.6880
Mubyarto, M. (2003). Teori Investasi dan Pertumbuhan Ekonomi dalam Ekonomi Pancasila. Journal of Indonesian Economy and Business (JIEB), 18(3), 218–224. https://doi.org/10.22146/jieb.6631
Mubyarto, M. (2004). Menuju Sistem Ekonomi Pancasila: Reformasi Atau Revolusi. Journal of Indonesian Economy and Business (JIEB), 19(1), 16–26. https://doi.org/10.22146/jieb.6586
Mubyarto, M., & Bromley, D. W. (2002). Ilmu Ekonomi dan Pembangunan Indonesia (A Development Manifesto for Indonesia). Journal of Indonesian Economy and Business (JIEB), 17(1), 1–12. https://doi.org/10.22146/jieb.6704
Munir, S., Haryono, A., Soesilo, Y. H., & Masruro, U. (2024). Internalization of Pancasila Values in High School Economic Learning in the Digital Era. KnE Social Sciences, 252–265. https://doi.org/10.18502/kss.v9i21.16688
Retnoningsih, Y. D., & Jamin, M. (2024). Indonesia’s Pancasila Economy: The Significance of Law in Sustainable Development. International Conference on Cultural Policy and Sustainable Development (ICPSD 2024), 634–640. Atlantis Press. https://doi.org/10.2991/978-2-38476-315-3_86
Rizalihadi, T. (2019). Kemandirian Usaha Kreatif Berbasis Online Untuk Tercapainya Ketahanan Ekonomi Nasional. Jurnal Lemhannas RI, 7(4), 23–28. https://doi.org/10.55960/jlri.v7i4.108
Rizki Aris Suseno, W., Sri Umi Mintarti Widjaja, & Sugeng Hadi Utomo. (2022). Internalization of The Economic Morality Of Pancasila in Economic Behavior on Economic Education Master Students in Universitas Negeri Malang. International Journal Of Humanities Education and Social Sciences (IJHESS), 2(1), 73–84. https://doi.org/10.55227/ijhess.v2i1.211
Sahab, A., Nauvarian, D., Larasati, N. D., & Hennida, C. (2024). Indonesian foreign investment policy under oligarchic economy: striking balance between economic nationalism and liberalization. Journal of the Asia Pacific Economy, 1–19. https://doi.org/10.1080/13547860.2024.2361575
Sen, A. (1988). The concept of development. Handbook of Development Economics, 1, 9–26. https://doi.org/10.1016/S1573-4471(88)01004-6
Sitorus, A. P. (2023). Pancasila Legal Theory and Indonesia’s Marine Economic Rights Management in International Law. Media Syari’ah: Wahana Kajian Hukum Islam Dan Pranata Sosial, 25(1). https://doi.org/10.22373/jms.v25i1.15946
Subroto, W. T. (2015). Revitalization of pancasila economic system in the globalization era. International Journal of Economics and Financial Issues, 5(4), 860–867.
Suyahman, S., Karimullah, S. S., & Syahril, M. A. F. (2025). Intersectionality in Social Justice: Unpacking the Complexity of Oppression. Jambura Law Review, 7(1), 275–308. https://doi.org/10.33756/jlr.v7i1.27828
Taba, I. (2024). Evolusi Pemikiran dan Lingkungan yang Berubah menuju Knowledge Base Society: Sudut Pandang Ekonomi Pancasila. 4(1), 1–10. https://doi.org/10.52738/pjk.v4iX.524
Utomo, B., & Setiyono, Y. Y. (2024). Leveraging Digital Technology in Micro SMEs to Enhance Indonesia’s Economic Prosperity. Jurnal Lemhannas RI, 12(3), 391–402. https://doi.org/10.55960/jlri.v12i3.985
Waluyo, E. B., & Guritno, B. (2023). Harmonizing Ecotourism In Indonesia: Balancing The Green Economy, Cultural Heritage, And Biodiversity. International Conference On Digital Advanced Tourism Management And Technology, 1(1), 376–399. https://doi.org/10.56910/ictmt.v1i1.81
Waluyo, Najicha, F. U., & Hermawan, S. (2019). Law in the Globalization and Its Influence on Economic Development and Environmental Preservation based on Pancasila and the Indonesian Constitution of 1945. Proceedings of the 3rd International Conference on Globalization of Law and Local Wisdom (ICGLOW 2019), 317–321. Paris, France: Atlantis Press. https://doi.org/10.2991/icglow-19.2019.78
Wardhana, I. W., Syahyuti, S., Jamal, E., & Silalahi, S. A. F. (2024). Urgensi dan Strategi Pengarusutamaan Ekonomi Pancasila dalam Pembangunan Ekonomi Nasiona. 4(1), 1–10. https://doi.org/10.52738/pjk.v4iX.520
Yahya, A., Fadlulloh, Q. H., Nurdin, N., & Imanullah, M. N. (2024). Integration of Pancasila Values in Economic Legal engineering for National Development. Walisongo Law Review (Walrev), 6(1), 56–70. https://doi.org/10.21580/walrev.2024.6.1.22259
Zulkarnaen, Z., Maisaroh, M., & Izmuddin, I. (2024). Islam and Pancasila Democratic Economics: Islamic Criticism of Capitalist and Socialist Economic Thought. Proceeding of The International Conference on Business and Economics, 2(1), 94–108. https://doi.org/10.56444/icbeuntagsmg.v2i1.1606