Market Monopoly Through the Lens of Pancasila: Balancing Economic Efficiency and Social Justice

Abstract

This study examines market monopoly from the perspective of Pancasila, Indonesia’s foundational ideology, emphasizing the balance between economic efficiency and social justice. While monopolistic practices can enhance productivity and resource optimization, they often risk creating inequality, limiting market access, and undermining societal welfare. By integrating the five principles of Pancasila—belief in God, humanitarianism, national unity, democracy through deliberation, and social justice—the study proposes a framework for evaluating and regulating monopolistic behaviors in a way that aligns with ethical, social, and economic values. Using qualitative analysis of policy documents, case studies, and literature, the research highlights how Pancasila-based economic principles advocate for fair competition, equitable wealth distribution, and responsible corporate governance. The findings suggest that applying Pancasila’s moral and social guidelines can mitigate the negative effects of market monopolies while maintaining efficiency, thus fostering sustainable economic development and promoting inclusive prosperity. This perspective offers valuable insights for policymakers, regulators, and scholars seeking culturally grounded approaches to economic governance.