JAKARTA - The transformation of development from an extractive economic model to a restorative economy is considered to require policy and financial support so that environmental restoration can produce sustainable economic benefits for the community.
Environment Minister Mohammad Jumhur Hidayat stated that the development paradigm needs to shift from practices that exploit the environment to development that goes hand in hand with ecosystem protection and restoration. He stated that environmental restoration should no longer be viewed as a burden, but rather as part of an economic development strategy.
"Until now, humans have been building while destroying the environment. Now the paradigm must change, to building while protecting the environment (development through environmental protection)," said Jumhur, at the screening of a documentary film and dialogue titled "Restorative Economics: Encouraging Policies and Financing for Nature-Based Initiatives" at the Institut Français Indonesia in Jakarta on Thursday (July 23, 2026).
He said the government is also collecting data on businesses that have caused environmental damage as part of efforts to encourage ecosystem restoration.
"We'll give those who have already caused damage a lesson so they'll restore the environment. We're currently collecting data on them. That's what we'll do later," he said.
This view is in line with the research results of The PRAKARSA who believes that ecosystem restoration needs to be positioned as an economic development strategy, not just an environmental agenda.
The Executive Director PRAKARSA Victoria Fanggidae said that experience in various regions shows that the success of restoration depends heavily on the ability to convert ecological benefits into economic value that is directly felt by the community.
"We want to present their voices from the field through this film. We hope that these research findings can be connected so they can become a shared agenda, reaching policymakers in Jakarta, and not become isolated movements," he said.
The research was conducted in four regions: Siak in Riau, Tamanmartani in Sleman, Sigi in Central Sulawesi, and Tampelas in Katingan Regency, Central Kalimantan. Restoration practices included agricultural land restoration, peat restoration, forest rehabilitation, and natural resource-based business development.
The PRAKARSA The study found that the success of a restorative economy is not solely supported by environmental awareness. These initiatives also require economic incentives, market access, institutional support, and financing schemes that enable communities to directly benefit from restoration activities.
According to the agency, this agenda is becoming increasingly important amidst the challenges of forest, peatland, soil, and various productive ecosystem degradation. Restoration efforts are also considered to contribute to the low-carbon development target, Indonesia's FOLU Net Sink 2030, and national emission reduction commitments.
Through this forum, governments, financial institutions, investors, business actors, civil society organizations, and academics also discussed opportunities to strengthen policies, partnerships, and financing schemes to expand nature-based initiatives. The forum is expected to be the initial step in developing a follow-up agenda, ranging from policy advocacy and financing development to strengthening the restorative business ecosystem in various regions.
Author: Ichsan Amin
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This article was first published in investor.id