JAKARTA, July 23, 2026 - The PRAKARSA Promote restorative economics as a primary approach to national development. Restorative economics should not simply be positioned as a collection of environmental projects, but rather as an economic model that restores ecosystems, strengthens community livelihoods, and creates sustainable economic value.
This message emerged in a film screening and panel discussion entitled "Restorative Economy: A Counter-Extractive Solution" as a dissemination event for restorative economic research conducted by The PRAKARSA in four sites: Siak, Sigi, Tamanmartani, and Tampelas.
Held at the Institut Francais Indonesie (IFI), the film screening and panel discussion (23/7) were also attended by the Minister of Environment, Moh. Jumhur Hidayat, government representatives from various ministries/institutions, regional governments, monetary authorities, philanthropy, the private sector, Civil Society Organizations (CSOs), media, academics, and various other invited guests.
In his remarks, the Executive Director of The PRAKARSAVictoria Fanggidae emphasized that a restorative economy is no longer an option, but a necessity. "This is in line with UN Decade on Ecosystem Restoration 2021–2030, Indonesia's commitment to Second NDC and targets FOLU Net Sink 2030"And various other achievement targets," said Ria. Victoria also emphasized that the research's key findings demonstrate that a restorative economy relies heavily on the strength of cross-stakeholder networks.
Minister of Environment, Moh. Jumhur Hidayat, reminded of the importance of the balance between growth maniac and blind environmentalist, and emphasizes that sustainable development is the sweet spot between economic growth, social well-being, and environmental sustainability. Jumhur argues, "We are now in the second phase of development (unconventional), where, unlike the first phase, our goal is to be more 'intimate' with nature while also generating economic value."
In addition to the Ministry of Environment and Forestry, the government, through the Ministry of Forestry, is also intensifying restoration projects, such as the rehabilitation of 12 million hectares of critical land, Social Forestry (PS) of 8,3 million hectares, and Customary Forests of 1,4 million hectares, in addition to the 50 million hectares of Carbon Reduction. The Director of Forestry Business Development and Utilization, Ilham, stated that "The economic value that can be generated is 13,4 billion tons of CO2, with a total potential PNBP of IDR 2 trillion." For this reason, Ilham invited contributions from the private sector and the community to achieve this target.
Beyond ideas and programs, discussions and research findings also touched on financing. Kurniawan Agung, Director and Head of the Green Finance Economics Group at Bank Indonesia, emphasized the importance of supply-side interventions. "Supply-side interventions, such as macroprudential liquidity incentives to maintain inflation, and demand-side interventions, such as supporting infrastructure and carbon emission monitoring tools for MSMEs and other institutions, support a sustainable economy." Rama Hidayat, Assistant Manager of AVPN, also emphasized the role of philanthropy in providing initial funding for green projects, through impact investing and business matchmaking with funders through programs like AVPN's Impact Collab.
On the policy side, M. Jauhari, Coordinator of the Sigi Multistakeholder Coordination Forum (FKMP), emphasized the importance of local restorative initiatives being captured by binding policies and regulations, such as the Sigi Green Regional Regulation. Program Director of The PRAKARSAYuanda Pangi Harahap offered two policy recommendations, providing incentives for local initiatives. "Not only in the form of material, but also facilitating licensing and integrating policies at the central and regional levels," he said.
Mushrahmad Igun, one of the driving forces behind restorative economic initiatives at the local level, highlighted the most fundamental prerequisite. "We must believe in the local community, its products, its capacity, and its capabilities. Initiatives like this must also grow elsewhere, according to the potential and challenges of each region," explained the man, familiarly known as Gun.
The PRAKARSA Indonesia already has many restorative initiatives worth expanding. The next challenge is ensuring the country doesn't stop at targets and commitments, but instead develops policies, financing, and institutions that enable local initiatives to become a real part of the national economic transformation.
A restorative economy must be a development agenda capable of restoring nature, creating jobs, increasing people's incomes, and reducing Indonesia's dependence on extractive economic activities.