The low numeracy skills of elementary school students in Indonesia, reflected in the stagnation of PISA scores over the past decade, demand a radical reconstruction in mathematics pedagogy. This study aims to conduct an in-depth analysis of the implementation of numeracy literacy in fifth-grade mathematics learning through a literature review approach. The focus of this study is directed at three fundamental aspects: the conceptual redefinition of numeracy literacy within the Merdeka Curriculum framework, the identification of empirical problems at SD Negeri Maospati 1, and the formulation of a strategy for integrating local contexts as a stimulant for critical reasoning. The research method used is descriptive qualitative based on literature studies with content analysis techniques applied to various policy documents, leading scientific journals, and global assessment reports. The results show that numeracy literacy in fifth-grade students is often hampered by a mechanistic approach that separates numbers from students' social realities. This study proposes that the transformation of numeracy skills can be achieved through the "Contextual-Kinesthetic Numeracy" learning model that utilizes the local ecosystem of Magetan, such as market economic activities and agricultural data, as concrete manipulative media. The findings indicate that the integration of authentic problems significantly improves students' data-based prediction and decision-making abilities. The conclusion of this study emphasizes the urgency of a paradigm shift from algorithmic mastery to functional reasoning mastery to create graduates with adaptive life skills in the era of disruption..