This qualitative study examines political ideology mainly on Pancasila and its association in the development of Indonesian films. Like other countries, Indonesia has undergone a change of political system from time to time. Indonesian Ideology and its political system evolved in three phases: Orde Lama (the old order), Orde Baru(the new order) and Orde Reformasi (the reformed order) that directly or indirectly form the narrative and plot of popular Indonesian films. As a policy of the nation-state, pancasila that emerged during the era of Orde Lama is influential not only to enlight the creation of national identity but to form popular views in various contexts including filmmaking. Thus, this study will analyse the importance of Pancasila as a major element in the making of popular Indonesian films and various challenges to maintain its role as important ideology for establishing the national identity of the state.