Constitutional Justice Daniel Yusmic P. Foekh speaking giving a presentation at a national seminar on “Pancasila-Based Investment” by the Christian University of Indonesia, Thursday (11/11/2021) at Nusantara Building V of MPR/DPR/DPD Complex, Jakarta. Photo by Humas MK/Bayu.

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Friday, November 12, 2021 | 07:36 WIB

JAKARTA, Public Relations—Constitutional Justice Daniel Yusmic P. Foekh gave a presentation on “The Constitutional Court and Economic Interpretation of Pancasila” at a national seminar on “Pancasila-Based Investment” by the Christian University of Indonesia (UKI) onsite and online on Thursday, November 11, 2021 at Nusantara Building V of MPR/DPR/DPD Complex, Jakarta. MPR Speaker Bambang Soesatyo, Constitutional Justice of 2003-2009 Maruarar Siahaan, 6th Vice President Try Sutrisno, and UKI Rector Dhaniswara K. Harjono were in attendance.

“As a state ideology, Pancasila is the manifestation of the values that live in society. These values become the way of life of Indonesian people in their everyday life. It became the material cause of Pancasila that reflects the original characteristics of the Indonesian nation,” he said.

Pancasila Economy

Justice Foekh then explained Pancasila economy, which he said is a moral and political solution toward the reconstruction of Indonesia’s national economy. According to Mubyarto, in the Pancasila economy, the economy is driven by economic, social, and moral stimuli. In addition, the entire community has a strong will towards social equality (egalitarianism), in accordance with humanitarian principles and economic priorities in a strong national economy, which means that nationalism drives every economic policy.

“In addition, the Pancasila economy is characterized by cooperatives, which is the pillar of the economy and is the most concrete form of mutual effort. There is also a clear and firm balance between planning at the national level and decentralization in the implementation of economic and social activities,” he explained.

In the 1945 Constitution, Justice Foekh said, the national economy is regulated in Article 33, which reads, “(1) The economy shall be prepared as joint efforts based on family principle; (2) Production branches significant to the state and anything controlling the life of many people shall be controlled by the state; (3) Soil and water and natural wealth contained therein shall be controlled by the state and used for the welfare of the people to the utmost; (4) The national economy shall be held based on economic democracy with the principles of togetherness, efficiency with justice, sustainability, environmental perception, independence, and by keeping the balance of the national economic progress and unity; (5) Any further provisions on the implementation of this article shall be stipulated by virtue of law.”

The Interpretation of “Controlled by State”

Justice Foekh added that there is the phrase ‘controlled by the state’ in Article 33 paragraphs (2) and (3). According to the Constitutional Court in Decision No. 001-021-022/PUU-I/2003, this phrase “must be interpreted to include state control in a broad sense originating from the concept of people sovereignty over all sources of ‘earth and water and the natural resources contained therein’ including public ownership by the people’s collective over said resources.”

In the 1945 Constitution, the collective people mandates the state to make policies (beleid) and govern (bestuursdaad), arrange (regelendaad), manage (beheersdaad), and oversee (toezichthoudensdaad) for the welfare of the people to the utmost, he said. The governing function is exercised by the government through its authority to issue and revoke permits (vergunning), licenses (licentie), and concessions (concessie).

Justice Foekh revealed that the arranging function is exercised through legislative authority by the House of Representatives (DPR) and the Government, and the regulatory authority by the Government (executive). The managing function is exercised through shareholding and/or direct involvement in the management of state-owned enterprise (BUMN) or state-owned legal entities (BHMN) as institutional instruments through which the state c.q. the Government utilizes its control over these resources for the greatest welfare of the people.

Next, the oversight function is exercised by the state c.q. the Government in supervising so that state control over important production branches and/or those that control the livelihood of the people is really carried out for the greatest welfare of the people.

“Thus, investment and the economy must be aimed at the greatest welfare of the people, including in the management of natural resources,” Justice Foekh stressed.

Writer        : Nano Tresna Arfana
Editor        : Nur R.
Translator  : Yuniar Widiastuti (NL)

Translation uploaded on 11/15/2021 11:19 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

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