IMPLEMENTATION OF PANCASILA ECONOMIC POLICY AS A PARADIGM OF NATIONAL ECONOMIC DEVELOPMENT

Abstract

This research aspires to explore the application of the Pancasila paradigm in government policies related to national economic development. The research method used is a normative approach with a descriptive-analytical approach that utilizes secondary data through library research. The research results show that the implementation of the Pancasila paradigm in the Society 5.0 era requires the application of basic principles as the basis for economic policy, with a focus on justice, shared prosperity, and sustainability, in line with the essence of Pancasila values as the state's philosophical foundation. However, in practice, Indonesia adopts an economic system approach that involves free market components as well as government and private intervention in the public economic sector. Pancasila also functions as the basis for the formation of a legal system in Indonesia, which reflects national development goals that include spiritual, physical, individual, social, and spiritual aspects. By aligning the principles of Pancasila into the context of economic development in the Society 5.0 era, Indonesia aims to strengthen an economic structure centered on local wisdom, reduce economic equality, and increase shared prosperity in all regions of the country.