The strengthening of national character and civic engagement within Islamic educational institutions faces ideological polarization challenges rooted in the historical dynamics of the state-religion relationship. This study aims to analyze the alignment of Pancasila’s ideological values with Islamic teachings and formulate their implications for national character building within the framework of Islamic Education. Employing a Systematic Literature Review (SLR) method with a qualitative-descriptive approach, this study conducts in-depth content analysis of educational policy literature, theological documents of religious organizations, and historical-philosophical sources. The findings reveal that Pancasila serves as a kalimatun sawa (common platform) that shares substantive cohesion with universal Islamic values: Tawhid (Pillar 1), Ukhuwah Basyariyah (Pillar 2), Hubb al-Wathan (Pillar 3), Syura (Pillar 4), and Al-‘Adl (Pillar 5). The theological foundations developed by mainstream organizations such as Nahdlatul Ulama and Muhammadiyah through the concepts of Dar al-Sulh and Darul Ahdi wa Syahadah can be effectively internalized into the Islamic Religious Education (PAI) curriculum and learning strategies. Pancasila represents a harmonious synthesis of Islamic theology and national identity. These findings offer theoretical and practical contributions to Islamic Educational institutions by providing an integrative internalisation model of ideological values to protect students from radicalism while reinforcing moderate national character.
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