<![CDATA[The rapid acceleration of the digital economy creates structural disruptions that fundamentally challenge the sustainability and relevance of grassroots economic institutions based on Pancasila in Indonesia. The aim: This research seeks to explore transformation strategies for cooperatives and MSMEs rooted in Pancasila values to navigate digital economic disruptions and to develop a grounded, practical transformation model. Methodology: A qualitative approach with constructivist grounded theory involving 118 informants from cooperatives, MSMEs, and community economic organizations across five districts in Lampung through in-depth interviews, participatory observation, and document analysis. Results: Three transformation pathways were identified: organic-adaptive, disruptive-accelerative, and hybrid-synergistic, with the third pathway demonstrating the most sustainable outcomes through the integration of digital technology with the principles of gotong royong. Conclusion: The sustainable transformation of grassroots economics requires a value-first approach that grounds digital adoption in the ethics of cooperation and community-based Pancasila principles.]]>
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