Pancasila Economy: Forgotten Dream or Weapon Against Inequality?

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.