Pancasila Economics as an indigenous development framework: Principles, institutional architecture, and empirical performance in Post-Reform Indonesia

Naufal Fairuz Adryan ()
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Naufal Fairuz Adryan: Faculty of Economics and Business, Universitas Brawijaya, Malang, East Java, Indonesia

Journal of Economic Epistemology and Philosophy, 2026, vol. 1, issue 1, 53-65

Abstract: 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

Keywords: Pancasila Economics; Indonesian economic development; cooperative economics; social justice; Article 33 Constitution (search for similar items in EconPapers)
Date: 2026
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DOI: 10.55942/jeep.v1i1.1922

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