Pancasila economics

Pancasila economics (Indonesian: Ekonomi Pancasila), also known as "Indonesian populist economics" (Indonesian: Ekonomi kerakyatan Indonesia), is an economic system which aims to reflect the five principles of Pancasila. The term "Pancasila economy" first appeared in an article by Emil Salim in 1967. Mubyarto is one of the staunchest of the Pancasila economic theorists.

In essence, a Pancasila economy is a system that tries to avoid pendulum-like swings from one extreme (a free market economy, known in Indonesia as free fight liberalism) to the other (state socialism, especially of the Soviet kind). In simple terms, a "Pancasila economy" can be described as a market economic system with government control or a controlled market economy. A Pancasila economy can be considered an example of a mixed economy or a third way economic system.

A Pancasila economy is seen as a counterbalance to a neoclassical approach promoting individualism and free markets that is adapted the values of Indonesian society, including religious values, culture, customs and norms.

The concept of Pancasila economics was first conceived in the early days of the New Order as part of the regime's De-Sukarnoization and "cleansing of Communist, 30 September Movement and PKI remnants from Pancasila" which was aimed for what the regime claim as a "return into a pure, consequential Pancasila".