The CELIOS report titled “Calculating the Impact of a Restorative Economy: A Way Out of the Economic Stalemate” highlights the potential of a restorative economy to increase Indonesia’s economic output tenfold over the next 25 years, from Rp203.26 trillion to Rp2,208.7 trillion. A restorative economy, which combines ecosystem restoration with inclusive growth, focuses on agriculture, forestry, and fisheries, which support more than 85% of Indonesia’s population. The study finds that allocating an additional 1% of GDP to these initiatives could reduce inequality by up to 15%, increase employment by 14%, and lower morbidity rates by up to 11%. Bhima Yudhistira, Executive Director of CELIOS, emphasizes, “The Prabowo administration could promote sustainable farming and fisheries practices and integrate them into the MBG (Makan Bergizi Gratis) program, prioritizing local food. This strategy could help reduce MBG logistics costs and maximize benefits for farmers and local businesses.”
The study also shows that the success of a restorative economy depends heavily on government policy support, including fiscal incentives, subsidy programs, and sustainability regulations. Media Wahyudi Askar, Director of Public Policy at CELIOS, stresses, “Under a Business-as-Usual scenario, local economic potential in agriculture, forestry, and fisheries will remain stagnant. However, with policies that promote a restorative economy—such as tax incentives, subsidy programs, and sustainability regulations—we can increase output more than tenfold. These policies will ensure that rural communities, which are often marginalized, can also benefit from economic development.”
Furthermore, empowering local communities is key to achieving a fairer distribution of income. Jaya Darmawan, an economist at CELIOS, says, “A restorative economy offers a major opportunity to distribute income more fairly. In the Progressive scenario, labor compensation rises to Rp842.1 trillion by year 25, compared with Rp64.9 trillion under BAU. A more equitable distribution of income not only reduces the gap between urban and rural areas but also strengthens social cohesion. By empowering local communities through technical training and access to technology, we can create a more inclusive and harmonious society.” The report stresses that a restorative economy offers a way to build an inclusive, sustainable, and resilient economy.
The CELIOS report titled “Valuation of Restorative Economic Impact: A Pathway to Overcoming Indonesia's Economic Stalemate” highlights the potential of a restorative economy to boost Indonesia’s economic output tenfold over the next 25 years, from IDR 203.26 trillion to IDR 2,208.7 trillion. By combining ecosystem restoration with inclusive economic growth, this approach focuses on agriculture, forestry, and fisheries—the backbone for over 85% of Indonesia’s population. The study finds that allocating just 1% of GDP to restorative initiatives could reduce income inequality by up to 15%, increase employment by 14%, and lower morbidity rates by 11%. Bhima Yudhistira, Executive Director of CELIOS, emphasizes, “The Prabowo administration could promote sustainable farming and fisheries integrated into the MBG (Makan Bergizi Gratis) program, so local food can be prioritized. This strategy could reduce MBG logistics costs and maximize benefits to farmers and local businesses.”
The report also underscores that the success of a restorative economy depends heavily on government support, including fiscal incentives, subsidy programs, and sustainability regulations. Media Wahyudi Askar, Director of Public Policy at CELIOS, stresses, “Under a Business-as-Usual scenario, local economic potential in agriculture, forestry, and fisheries will remain stagnant. However, with policies that promote restorative economy—such as tax incentives, subsidies, and sustainability regulations—we can increase output more than tenfold. These policies will ensure that rural communities, often marginalized, can also benefit from economic development.”
Furthermore, empowering local communities is crucial for equitable income distribution. Jaya Darmawan, an economist at CELIOS, notes, “A restorative economy offers a major opportunity to distribute income more fairly. In a Progressive scenario, labor compensation rises to IDR 842.1 trillion by year 25, compared to just IDR 64.9 trillion under BAU. More equitable income distribution not only reduces urban-rural gaps but also strengthens social cohesion. By empowering local communities through technical training and access to technology, we can create more inclusive and harmonious societies.” The report emphasizes that a restorative economy provides a pathway toward a more inclusive, sustainable, and resilient Indonesian economy.
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