Pancasila Values and Islamic Public Finance in Indonesia: An Exploratory Study of Fiscal Perceptions and Descriptive Trends, 2020–2024.

Lia Kian; Sofyan Abas; Andri Brawijaya

Authors

Lia Kian University of Djuanda Bogor, Indonesia
Sofyan Abas University of Muhammadiyah Maluku Utara, Indonesia
Andri Brawijaya University of Djuanda Bogor, Indonesia

Keywords:

Pancasila Values, Islamic Public Finance, Tax Compliance, Fiscal Trust, Zakat, Sukuk

Abstract

This study explores the implementation of fiscal compliance in Indonesia by examining the influence of social, moral, and spiritual considerations on the fiscal decisions of policymakers and taxpayers. The conceptual model developed links the values of *Pancasila*, Islamic public finance ethics, institutional legitimacy, and the willingness to fulfill fiscal obligations. A quantitative approach was employed using a Likert-scale questionnaire administered to 23 respondents selected through purposive sampling, supplemented by primary and secondary data as well as a literature review. The analysis is descriptive, based on the “tax-to-expenditure ratio,” “zakat-to-expenditure ratio,” and “sukuk-to-expenditure ratio” for the period 2020–2024. The findings indicate that fiscal compliance is not shaped solely by the threat of sanctions, but also by perceptions of fairness, transparency, and moral responsibility. Respondents view *Pancasila* and religious ethics as relevant to fiscal integrity, though they express concerns regarding unequal enforcement, limited transparency, and the gap between stated values and administrative practices. The tax-to-expenditure ratio increased from 41.31% (2020) to 63.12% (2024), while the *zakat*-to-expenditure ratio rose from 0.46% to 1.34%. These increases in the tax, *zakat*, and *sukuk* ratios serve only as contextual or descriptive evidence; they do not constitute proof of improved compliance, trust, or ethical governance. The study concludes that aligning *Pancasila* with Islamic public finance ethics can provide a normative guide for fiscal integrity, with its effectiveness contingent upon an inclusive, transparent, and fair administration. The primary contribution is the exploratory B-BPF framework, rather than a causally tested statistical model. An exploratory framework for public finance based on behavioral principles (B-BPF) that integrates ideology, religious ethics, institutional trust, and fiscal behavior within the Indonesian context.

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