Prabowo on the Meaning of Pancasila Economics: Religious, Humane and Just

The commemoration of Pancasila Day provided President Prabowo Subianto with an opportunity to champion the Pancasila economy. Prabowo said his government’s task is to transform the economy guided by Pancasila principles. ‘My historic task as the eighth President of Indonesia is to transform the nation, particularly our national economy. Transforming from an economy not fully based on Pancasila to one truly rooted in Pancasila,’ Prabowo stated in his speech at the Pancasila Building, Ministry of Foreign Affairs (Kemlu), Jakarta, on Monday, 1 June 2026. Second, a humane economy that strengthens national unity, where Indonesia’s wealth must be managed for the people’s prosperity. ‘Economic development must not merely produce statistical figures. It must deliver a better life for all Indonesians,’ Prabowo said. Third, the economy must prioritise national and public interests, not just benefiting a select few. Therefore, the government has established a commodity export agency, PT Danantara Sumberdaya Indonesia (DSI). The agency’s formation stems from Indonesia’s natural wealth having been long controlled by foreign entities and nations. Prabowo noted that most profits from natural resource sales flow overseas. ‘Hence, the government has implemented a one-stop export system for natural resources,’ he said. This is enshrined in Article 33 of the 1945 Constitution, which mandates Indonesia’s economy be structured on the principle of mutual cooperation. ‘Therefore, cooperatives must be strengthened, must rise up; they are a key tool to lift our people out of poverty and powerlessness,’ Prabowo said. The final principle of Pancasila economics, Prabowo stated, is social justice. ‘This is the goal of all our struggles. Economic growth must be accompanied by equitable distribution. Progress must be felt by all Indonesians,’ he stressed.