How to cite:

Alexander Seran (2024) Reinventing Ethical Substance of Pancasila in Article 33 of the 1945

Constitution: a Study of Indonesia’s Actual Economic System Based on Honneth’s Young Hegelian

Concept of Social Recognition, (06) 08,

E-ISSN:

2684-883X

Alexander Seran

Atma Jaya Catholic University, Indonesia

Email: [email protected]

Abstract

We observe social conflicts arise for a myriad of reasons such as politics, economics, and

differing cultural and religious identities. This essay is elaborated through a critical

interpretation of Indonesian political economy as it is written in Article 33 of the 1945

INTRODUCTION

Cooperatives are cooperation or cooperation. Based on Law no. 25/1992, a cooperative

is a business entity consisting of a group of people whose activities are based on the principle

of cooperation/cooperation to drive a people's economy based on family. The definition of

cooperatives in Law no. 25/ 1992 reflects the views of one of the founding figures of the

Unitary State of the Republic of Indonesia (NKRI) Dr. (h.c.) Drs. Mohammad Hatta, that

cooperatives as business entities are a milestone in economic development and development

as joint ventures that use the principles of kinship and cooperation (Wulansari, 2017). Thus,

cooperative.

5. Sales of goods are adjusted to the prevailing market price and payment must be in cash.

6. There is no discrimination in terms of ethnicity, race, religion and political sect.

7. The goods being traded are genuine goods, not damaged, fake or KW goods.

8. Members receive education on an ongoing basis.

cooperatives by the government, Government Regulation Number 9 of 1995 concerning the

Implementation of business activities savings and loans by cooperatives, Government

Regulation Number 33 of 1998 concerning Capital participation in cooperatives, Minister of

Cooperatives and SMEs Decree Number 98 of 2004 concerning Notaries making cooperative

deeds, Minister of Cooperatives and SMEs Regulation Number 10 of 2015 concerning

Cooperative Institutions, Minister of Cooperatives and SMEs Regulation Number 15 of 2015

2015 concerning savings and loan businesses by cooperatives, Minister of Cooperatives and

SMEs Regulation Number 9 of 2018 concerning the Implementation and Development of

Cooperatives, and Ministerial Decree Number 22 of 2020 concerning Procedures for

submitting data on cooperative debtors in the context of providing interest subsidies/margin

2. In its management, cooperatives must be democratic.

3. Distribution of business results is given fairly according to the portion of each member's

contribution to the cooperative.

4. Providing compensation to capital providers according to the amount of capital provided.

5. Prioritize independence.

The embodiment of cooperatives as business entities in the form of primary or

secondary cooperatives. Based on Law no. 25/1992, Article 15 states that primary

cooperatives are cooperatives that are founded by individuals and have more than 20

members. Secondary cooperatives are cooperatives founded by cooperatives whose members

are also cooperatives. Based on the type of business, primary cooperatives and/or secondary

3. Service cooperatives are cooperatives that provide services (except savings and loans) for

the needs of members and non-members.

4. Savings and loan cooperatives are cooperatives that serve members and non-members by

providing savings and loan services as the institution's sole business activity. s.

Service cooperatives are cooperatives that provide services (except savings and loans)

for the needs of members and non-members. Savings and loan cooperatives are cooperatives

that serve members and non-members by providing savings and loan services as the

institution's sole business activity. The benefits of being a member of a cooperative are still

limited apart from the rights of cooperative members to share the remaining business profits

(SHU) based on the amount of capital invested and the amount of profit obtained by the

3552 Syntax Idea, Vol. 6, No. 08, Agustus 2024

Social Recognition” is both intriguing and thought-provoking (Seran, 2017). It combines

elements of ethics, constitutional law, economics, and philosophical concepts, making it a rich

and multidisciplinary topic. Hannah Arendt's works (1972; 1990; and 2006) can be used to

sharpen understanding of citizens' rights and the state's obligation to protect and comfort

every citizen. Thus, recognition of the interrelationship between the state and citizens is

strengthened to prevent social conflicts or find solutions to the relationship between the state

and citizens as an inseparable whole.

Exploring the ethical substance within the context of Article 33 of the 1945

economic landscape through a fresh perspective. Axel Honneth Kampf um Anerkennung : zur

moralischen Grammatik sozialer Konflikte (1994). Translated into English by Joel, A.,

entitled The Struggle for Recognition: The Moral Grammar of Social Conflicts, 199.

interactions, identities, and societal structures greatly reflects the character of modern society

in stark economic differences: discriminatory, exploitative, and unfair. The unified world of

life is abandoned by economic competition for power in political leadership which

strengthens and perpetuates class differences. Emancipation is therefore a character of

togetherness in a multicultural world of life. Reinventing the ethical substance of togetherness

in the world of life is a condition and way to save democracy in practice rather than just

Constitution is a requirement for practicing economic democracy to achieve national goals as

written in the Preamble to the 1945 Constitution.

The problem in this study is that social conflicts emerge from a complex interplay of

values, interests, and identities. Whether rooted in politics, economics, or cultural differences,

these conflicts demand thoughtful resolution. The conflict related to Article 33; 1945

Constitution raises the following research questions. What is the content, understanding and

implementation of Article 33, Paragraphs (1-5) of the 1945 Constitution. How to restore

political and economic praxis in accordance with the values of a multicultural world of life.

The aim of the study is to maintain life together in the unity of the nation state and her

sustainability in the future. Developing politics and economics by ignoring the conditions of

paradigms and approaches to create a holistic understanding of complex phenomena. The

research methodology uses in this research is constructivism paradigm to understand the cases

of the contents and weaknesses in the implementation of Article 33, Paragraphs (1-5) of the

1945 Constitution. (Panjwani, 2017) in their respective works on the methodology of science

emphasize the same thing, namely, the importance of paradigms, approaches, and research

methods. The paradigm of this research is interpretivism. The approach used is qualitative

with a case study method for the implementation of article 33 of the 1945 Constitution.

Findings in analysis and discussion of the problem of this study may help in formulating the

conclusion as reinventing ethical substance of Pancasila practicing Article 33 of the 1945

Constitution.

Belief in one (the Almighty) God

Just and civilized humanity

Indonesian Unity

Democracy led by wisdom in

deliberation/representation

Social justice for all Indonesian people

known as the Investigation Agency for Preparatory Efforts for Independence (abbreviated as

BPUPKI), is a body formed by the Japanese military occupation government in Java. The

Japanese military government, represented by the 16th and 25th Army command, approved

the formation of BPUPKI on March 1, 1945. This body was formed as an effort to gain

support from the Indonesian people by promising that Japan would help the process of

Indonesian independence. BPUPKI has 67 members, chaired by Dr. Kanjeng Raden

Tumenggung (K.R.T.) Radjiman Wedyodiningrat. The task of BPUPKI is to study and

investigate matters relating to aspects of politics, economics, governance, and matters

necessary in efforts to establish an independent Indonesian state. Pancasila was formulated by

Sukarno on 1 June 1945 in the first BPUPKI Session which took place from 29 May to 1 June

3554 Syntax Idea, Vol. 6, No. 08, Agustus 2024

role in the history of Indonesia's struggle for independence. Pancasila and the 1945

Constitution were accepted and established as the State Foundation and State Constitution on

August 18, 1945, the day after the Proclamation of Indonesian Independence on August 17,

1945.

Article 33 of the 1945 Constitution holds significant importance in shaping

policies and practices. As the ethical substance of the 1945 Constitution, Pancasila is the

crystallization of historical experiences that are woven into a single region called Indonesia.

The brief description of Indonesia and her history are pertinent and relevant to understanding

and appraising what is happening as her present’s difficulties or problems.

while the other 135,576,278 people are women (49.5 percent). Indonesia has a population of

around 3.45% of the total world population and her population growth is currently at a rate of

0.82% per year. With a land area of around 1,811,570 kms, the population density is around

153 people per km.

The capital city of Indonesia is Jakarta. Form of her Government is republic with the

head of government is president. State philosophy is Pancasila means five principles that

serve as ethical substances of the 1945 Constitution. National flag is red and white while her

national anthem is Indonesia Raya (means Great Indonesia). The currency of Indonesia is

Rupiah. The climate is tropical with the temperature 19-34C. Indonesia has 3 time zones.

Western Indonesia standard time is GMT plus 7 hours covers islands of Sumatera, Java, and

namely, "The economy is structured as a joint effort based on the principle of kinship. This

shows the importance of cooperation and togetherness in managing the country's economy.

Second, the value of social justice for the state and which affect the lives of many

people are controlled by the state. Thus, the earth, water and natural resources contained

therein are controlled by the state and used for the greatest prosperity of the people. The value

of Justice emphasizes that the use of natural resources is for the welfare of all people.

Article 33 of the 1945 Constitution states the important role of Pancasila in Indonesia's

national economic system (Kompas Com (2021) as follows:

a. The principle of kinship in Article 33 of the 1945 Constitution rejects economic activities

that prioritize competition and individualism, so the entire economic structure, from the

c. The principle of economic democracy in Paragraph (4) requires that the Indonesian

economy runs in accordance with democratic principles which emphasize togetherness,

efficiency, justice, sustainability, environmental awareness, independence, and maintaining

a balance of progress and unity. national economy. In accordance with democratic

principles, the Indonesian economy must be regulated and obeyed as a law in accordance

with the words of Article 33 Paragraph (5), namely, "Further provisions regarding the

implementation of this article are regulated in law" so that it must be obeyed by all

citizens.

The data in the Fourth Amendment to the 1945 Constitution is interesting to discuss

regarding the ethical content of Pancasila in Article 33 of the 1945 Constitution.

Constitution as the State Constitution.

Social Welfare is the title of Chapter XIV regarding Article 33, Paragraphs (1-3) of the

original text of the 1945 Constitution (before the fourth Amendment of the 1945 Constitution

in 2002). Social welfare is the goal of economic activities and Article 33 (1-3) is "condition"

of the possibility to attain the goal. Requirements in Article 33 (1-3) are antecedents which

must be fulfilled so that the objectives stated in the title "Social Welfare" can be achieved.

The determination of conditions for economic activities in accordance with Pancasila values

is emphasized in the Explanation of the 1945 Constitution as follows.

Article 33 states the basis of democracy, that economic production is carried out by all,

for all under the leadership or supervision of members of society. It is the prosperity of

them. Only companies that do not control the lives of many people can be in the hands of one

person. Earth and water and the natural wealth contained in the earth are the basic principles

of people's prosperity. Therefore, it must be controlled by the state and used for the greatest

prosperity of the people (Stated in the Explanation of the 1945 Constitution) as follows:

a. The formulation of the title of Chapter “Social Welfare”

b. Building a company that is in accordance with the mandate of Article 33 of the 1945

Constitution is a cooperative.

c. Branches of production that are important for the state and that control the lives of many

people must be controlled by the state. Otherwise, the reins of production will fall into the

hands of someone in power and the people who are oppressed by them.

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empower cooperatives as partners to achieve national goals through the practice of political

democracy and economic democracy.

The Fourth Amendment to the 1945 Constitution regarding Article 33 with the change

of title in Chapter XIV to "National Economy and Social Welfare" the addition of Paragraphs

(4-5) without an official explanation as the original version of the 1945 Constitution has

caused pro and con opinions in the community. Here are some aspects that are often debated:

a. Ownership and Management of Natural Resources in the name of the state can hinder

innovation and efficiency. This assumption stems from their opinion that the private sector

may be more efficient in managing these resources. However, there are also supporters of

Article 33 who argue that state ownership ensures the use of natural resources for the

may be hesitant to invest in sectors controlled by the state. However, there are also those

who believe that foreign investment must be in line with national interests and people's

welfare as mandated by Article 33.

d. The Balance Between Public and Private Interests is an ongoing debate. There are those

who argue that Article 33 limits the role of the private sector too much, while there are also

other groups who argue that the state must ensure social justice and the welfare of the

people.

e. Some groups argue that Article 33 needs to be reformed to accommodate global economic

and technological changes. On the other hand, supporters of Article 33 argue that

constitutional values must remain relevant and protect the interests of the people.

The amendment to Article 33 in the 1945 Constitution is intended to strengthen

Indonesia's political and economic policies in accordance with national and international

economic dynamics. Thus, the interpretation of the Amendment of Article 33 in the 1945

Constitution into five paragraphs (1-5) must be changed along with the development of

history and economic thought in Indonesia. It means, ownership and management of natural

resources must be regulated in the interests of the wider community and avoid detrimental

exploitation. State-Owned Enterprises (BUMN) must play a strategic role in ensuring public

services and economic sustainability according to the principles of kinship, social justice, and

sustainability. Foreign investment must therefore be in line with national interests and

people's welfare in a balanced collaboration between public and private interests to ensure

husbandry sectors. Extractive businesses have an important role in utilizing natural resources,

opening jobs, and increasing economic profits. Extractive economic activities that involve the

people will increase people's awareness of economic democracy and political democracy in

environmental security-oriented economic activities and community welfare-oriented

economic activities (Sutrisna, Kurnia, Siagian, Ismadji, & Wenten, 2022). This is important to

consider morally and decide politically, including:

First, how to use natural resources efficiently and sustainably by involving the

community in managing natural resources such as mines, forests, and plantations together

with the state or state-owned enterprises as the implementation of Article 33, (1-5) in the 1945

Constitution.

people's welfare and sufficient stability for investment.

Fourth, how State-Owned Enterprises (BUMN) are responsible for managing vital

sectors such as energy, transportation and telecommunications can affect the efficiency,

quality of service and resilience of the country's economy.

Fifth, what is the balance between public and private interests in managing natural

resources? The private sector also plays a role in creating jobs, innovation, and economic

growth.

Amendment of Article 33 (1-5) in the 1945 Constitution is a manifestation of the

noble values or morality of Pancasila that in economic practice, Pancasila values underlie and

legitimize economic development to bring justice to all Indonesians. Article 33 contains the

of kinship.

Article 33, Paragraph (2) Branches of production which are important for the state and

which affect the lives of many people are controlled by the state. Article 33 Paragraph (3)

Earth and water and the natural resources contained therein are controlled by the state and

used for the greatest prosperity of the people. The meaning of Article 33, Paragraphs (2 and 3)

is that all branches of production from the earth and water which affect the lives of many

people can be processed and used by the state for the benefit of the wider community and for

the prosperity of the people. Control by the state means that the economy is not only

controlled by individuals or groups of people but must be used for the benefit of the wider

community and for the prosperity of all people. Therefore, control of economic resources that

3558 Syntax Idea, Vol. 6, No. 08, Agustus 2024

sustainability, environmental awareness, independence, and maintaining balanced progress

and national economic unity. This means that the economic system cannot be directly

controlled by the people, but can be represented by people's representatives, such as the

Assembly of People's Representatives (MPR), House of Representatives (DPR), Regional

Representative Council (DPD), and president.

From Article 33, Paragraphs (1-4) it can be concluded that the national economic

system is run through the principle of kinship, giving authority to the state to manage the

Indonesian economic system, by making economic democracy the basis, which is also

followed by the principles of togetherness, efficiency, justice, sustainability, environmentally

friendly, independent, and maintaining balanced progress and national economic unity.

Pancasila Revives Hegelian Concept of Social Recognition

Honneth’s study of Hegel’s social and political philosophy is focused on the division

and development of the idea of reason and freedom as the guiding force of history. Honneth

shows that Hegel thinks of reason and freedom in two phases during his lifetime.

of reason and freedom as dialectically fulfilled at the end of history as one and only

conception of truth about morality in the form of the State.

Hegel was influenced by both the empiricist theory of social contract and the Kantian

subjective theory of morality. However, Hegel offered a new understanding of history and

Historians display the thing itself without dragging it before their tribunal and judging

it. Yet things are different in the history of philosophy. Pancasila is about the history of

philosophy regarding the foundation of a nation-State. The question about Pancasila is

therefore the question about what is the deed in the event of the emergence of Pancasila? As a

history of philosophy, Pancasila necessitates how it is to be understood? (Poespowardojo &

Seran, 2021). As a history of philosophy, Pancasila is not just the first sight as a matter of fact

but the insight.

Hegel explained in the Phenomenology of Spirit (Hegel, Miller, & Findlay, 1977) that

the historical development of civitas from its natural stage of ethical life to the state as the

objective and full realization of a society into a constitutional state (the universal and absolute