Cendekia Iklim Indonesia Joins CELIOS Forum to Promote Restorative Economy in Indonesia

CELIOS Forum: Restorative Economy in Indonesia

In November 2024, CELIOS launched its report on the Potential and Valuation of Restorative Economy Impact. The discussion aimed to present findings on the feasibility of implementing a restorative economy model in Indonesia, assessing its macroeconomic impacts. CELIOS believes the restorative economy can connect profitable economic activities with environmental sustainability and social prosperity, contributing to a more balanced and resilient future for the country.

The event attracted a wide range of stakeholders, including government representatives, civil society organizations, research institutions, and academia. CII, a prominent advocate for climate-conscious economic models, was invited as a key speaker alongside Bappenas and other organizations.

CII was represented by Rizky Deco, CII's economic researcher, who participated as a panelist in the discussion titled, "Valuation of the Restorative Economy's Impact: A Solution to Economic Stagnation." Deco emphasized the importance of the CELIOS report in advancing discussions on alternative economic models that prioritize environmental recovery and social welfare. He also pointed out the need for scientific rigor in defining key economic assumptions and methodologies to strengthen the credibility and practical application of restorative economy strategies.

Potential of Restorative Economy in Indonesia

Research presented at the forum revealed Indonesia’s immense potential for adopting restorative economy practices. The report identifies 23,472 villages across Indonesia with high potential for restorative economic initiatives. However, the implementation of these initiatives requires careful planning, oversight, and collaborative efforts to ensure sustainable resource utilization for both local communities and the environment.

Despite the potential, challenges persist. Over 95% of villages have yet to implement restorative economy initiatives, indicating a need for more proactive actions from local governments and communities. Additionally, 23,653 villages are grappling with harmful economic practices, particularly in the extractive industry, which contributes to ecosystem degradation. If these unsustainable practices continue, they will threaten the livelihood of indigenous communities, further exacerbating environmental destruction.


Benefits of a Restorative Economy

The research conducted by CELIOS also highlights the transformative benefits of restorative economy initiatives. For example, allocating just 1% of GDP towards restorative economy projects could:

• Reduce social inequality by lowering the Gini ratio by 15%
• Increase employment rates by 14%
• Lower morbidity rates by 11%

In a more progressive policy scenario, sectors such as agriculture, plantations, and fisheries could generate IDR 203.26 trillion in economic output over the next 25 years—substantially outpacing the IDR 24.79 trillion projected under a business-as-usual (BaU) approach.

CII’s Commitment to Advancing the Restorative Economy

Cendekia Iklim Indonesia (CII) remains committed to advancing the restorative economy agenda in Indonesia. By engaging in discussions like the CELIOS report launch, and conducting its own primary and secondary research, CII continues to play a pivotal role in shaping Indonesia’s future, where economic growth and environmental restoration go hand in hand. CII hopes this research will spark continued dialogue and collaboration among stakeholders to develop sustainable economic solutions tailored to Indonesia's unique context.