RT Journal Article
A1 Naufal Fairuz  Adryan
T1 Pancasila Economics as an indigenous development framework: Principles, institutional architecture, and empirical performance in Post-Reform Indonesia
JF Journal of Economic Epistemology and Philosophy
YR 2026
VO 1
IS 1
SP 53-65
AB Pancasila Economics (ekonomi Pancasila) represents Indonesia's constitutionally embedded indigenous economic doctrine, articulated most systematically by Mubyarto and rooted in the five philosophical principles of the national ideology: divine monotheism, just humanity, national unity, deliberative democracy, and social justice. Despite its constitutional authority and increasing scholarly interest in non-Western development paradigms, Pancasila Economics remains empirically underexamined as a coherent and distinct economic system. Methods: This article employs a mixed integrative approach combining systematic conceptual analysis of the Pancasila economic doctrine with secondary quantitative analysis of Indonesia's national economic performance data (2000–2023) drawn from BPS Statistics Indonesia, World Bank Development Indicators, and UNDP Human Development Reports. Regression analysis examines the relationship between institutional manifestations of Pancasila economic principles—cooperative sector share, social protection expenditure, state enterprise investment, distributional equity, and participatory planning—and human development outcomes (HDI). Results: Indonesia's economic trajectory demonstrates selective congruence with Pancasila principles: poverty reduction has been substantial (from 18.4% in 2000 to 9.4% in 2023), cooperative GDP share has grown from 3.2% to 5.1%, and HDI has improved from 0.622 to 0.718. Regression results indicate that cooperative GDP share (beta = 0.387, p < .001), social protection expenditure (beta = 0.294, p = .002), and distributional equity (beta = 0.421, p < .001) are significant positive predictors of HDI. Discussion: These findings suggest that institutional configurations consistent with Pancasila economic principles positively associate with human development outcomes, while simultaneously revealing persistent tensions between constitutional mandates and neoliberal policy imperatives. Conclusion: Pancasila Economics offers a philosophically coherent and empirically relevant indigenous development framework with implications for comparative political economy and post-neoliberal institutional design in Global South contexts.
K1 Pancasila Economics, Indonesian economic development, cooperative economics, social justice, Article 33 Constitution
LK https://journal.privietlab.org/index.php/JEEP/article/view/1922
ER