To Strengthen Pancasila Economy, Lawmaker Proposes National Economic System Law

Indonesian Member of Parliament Nurdin Halid has proposed the creation of a National Economic System Law to solidify the "Pancasila Economy." This initiative comes in response to President Prabowo Subianto's recent affirmation of the importance of economic principles rooted in Pancasila and the 1945 Constitution.

Halid views President Prabowo's statement on Pancasila Day as a pivotal moment to reinforce the direction of national economic development. "For me, the President's firm statement on the Pancasila Economy on Pancasila Day, June 1, 2026, is a declaration to uphold the ideology of the NKRI Economic System. It is logical that Pancasila as the state ideology is translated into the state economic ideology. Thus, the Pancasila Economic ideology is a direct offspring of the state ideology," Halid stated on Sunday.

He further explained that the core values of the Pancasila Economy are embedded in Article 33 of the 1945 Constitution, which governs the national economic development system and strategy. "I strongly agree with the President's statement that Pancasila is the great consensus of the Indonesian nation. Well, the Pancasila Economy is the ideal that becomes the soul or spirit, which is abstract. Article 33 is the basic system and grand strategy on how the abstract is regulated and realized. Therefore, Pancasila and the 1945 Constitution are the great masterpieces of this nation's founders," he added.

Halid also noted that several programs under the Prabowo-Gibran administration reflect efforts to translate the mandate of Article 33 into concrete policies. One such initiative is the planned establishment of Village/Kelurahan Cooperatives (KDKMP), designed to reach approximately 83,000 villages and sub-districts across Indonesia. This aligns with Bung Hatta's "broomstick philosophy," emphasizing collective strength. However, Halid cautioned that KDKMPs must adhere to universal cooperative principles, ensuring professional management, member ownership, and democratic control to avoid the pitfalls experienced by previous cooperative models.