This paper frames a restorative economy as a fiscal and policy shift away from extractive growth toward ecosystem repair and social equity. It identifies two major obstacles: an investment gap (Indonesia lacks a dedicated restorative-economy budget) and policy limitations, with about 80% of existing related policies judged to have less-than-ideal implementation conditions. To close the funding gap, the authors project Indonesia will need IDR 892.15 trillion in total restorative-economy financing through 2045 (about IDR 37.41 trillion per year). The report situates this agenda within a broader global context of environmental degradation and argues that fiscal architecture must explicitly fund restoration to deliver inclusive, long-term growth.
On the revenue side, the study quantifies sustainable and progressive tax options capable of generating IDR 222.78–241.62 trillion per year to finance restorative initiatives. The breakdown includes a carbon tax (~IDR 69.75T), a windfall tax (~IDR 42.71T), a coal production tax (IDR 28.76T or 47.59T, depending on scenario), and a “tax the super-rich” (~IDR 81.56T). By coupling these measures with stronger policy execution and multi-stakeholder collaboration, the authors argue Indonesia can realign fiscal flows toward restoration, reduce inequality, and build resilience, all without relying on extractive, short-term growth models. Publication metadata (authors Media Wahyudi Askar, Achmad Hanif Imaduddin, Galau D. Muhammad, Jaya Darmawan; July 2024; CELIOS) appears in the front matter and key-findings pages.
Bibliography:
Askar, M. W., Imaduddin, A. H., Muhammad, G. D., & Darmawan, J. (2024, July). The New Economic Paradigm: Fiscal Support for a Restorative Economy. Jakarta: Center of Economic and Law Studies (CELIOS).