Economic philosophy in Indonesia's new Prabowo government: Pancasila economics, developmentalism, and neoliberal residues

Safri Adriansyah ()
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Safri Adriansyah: Faculty of Economics and Business, Brawijaya University

Journal of Economic Epistemology and Philosophy, 2026, vol. 1, issue 1, 28-39

Abstract: Indonesia's Prabowo Subianto administration has begun with an explicit claim that economic policy should be anchored in Pancasila, sovereignty, and an activist state role. This opinion article examines the economic philosophy implied by the early agenda and evaluates whether it represents neoliberal continuity, developmental statism, or a hybrid alternative. Using an Introduction, Methods, Results, and Discussion (IMRAD) structure, this article applies a critical conceptual review and document analysis to official policy texts, macroeconomic data, and peer-reviewed literature on neoliberalism, Pancasila economics, Indonesian developmentalism, oligarchy, and social investment. The findings indicate that the administration's philosophy is not a purely neoliberal project. Its central elements are state managerial authority, human capital welfare, economic sovereignty through resource downstreaming, and strategic asset mobilization through Danantara. However, neoliberal residues remain visible in investment discipline, global capital, performance metrics, asset optimization, and market-compatible instruments. Therefore, this article characterizes the new policy orientation as Pancasila developmentalism with neoliberal instruments. Its legitimacy depends on transparent fiscal rules, independent evaluation of the free nutritious meal program, strong governance of Danantara, conflict-of-interest safeguards, local participation, and ecological accountability. This article contributes a philosophical framework for assessing Indonesia's new economic direction and proposes criteria for judging its scholarly and policy credibility.

Keywords: Indonesia; Prabowo Subianto; Pancasila economics; neoliberalism; developmentalism; Danantara; free nutritious meal program (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:prv:jeeppv:1918

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DOI: 10.55942/jeep.v1i1.1918

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