The rapid growth of artificial intelligence (AI) in Indonesia requires an ethical framework guided by the values of national identity, in addition to technical effectiveness. The UNESCO Recommendation on the Ethics of AI and the EU AI Act, among others, provide important guidelines at both technical and legal levels. However, they are Western-oriented, secular, and individualistic in their paradigms. An axiological gap occurs between such frameworks when applied to communal societies with transcendental responsibility like Indonesia.[1] This study offers an alternative ethical framework for AI based on the five principles of Pancasila. [2] through qualitative philosophical research using hermeneutics analysis, wherein current international normative orders on AIs are critically compared vis-à-vis the values embodied within Pancasila. The results suggest a framework of "Digital Humanism" as: 1) theocentric accountability (First Principle), 2) preservation of human dignity from digital reductionism (Second Principle), 3) prevention of algorithmic polarization to develop social cohesion (Third Principle), 4) XAI-Explainable Artificial Intelligence fosters deliberative democracy (Fourth Principle), and sharing technological benefits to prevent data monopolies (Fifth Principle). Finally, this study discovered that Pancasila is very much needed as a moral compass to ensure that Indonesia's digital transformation is humanistic, culturally oriented, and social.
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