This quantitative assessment measures Indonesia’s restorative economy’s macroeconomic effects. Using econometric models, CELIOS projects IDR 2,208 trillion in cumulative output and a 15% drop in inequality (Gini ratio) over 25 years under a progressive scenario. The paper argues that restorative investments, environmental rehabilitation, renewable energy, and circular production, stimulate growth while preserving natural capital. Employment is expected to rise by 14%, and household consumption by 11%, confirming restorative economics as a viable growth path.
The report advocates a 1% GDP fiscal allocation to restorative programs, linking sustainability goals with macroeconomic resilience. It also identifies fiscal multipliers from green investment and proposes institutional reforms for long-term integration. CELIOS concludes that restorative economics bridges Indonesia’s stagnation by aligning environmental stewardship with inclusive growth.
Bibliography:
Darmawan, J., Askar, M. W., Fikri, B., Imaduddin, A. H., & Huda, N. (2024). Measuring the Impact of a Restorative Economy: A Way Out of Economic Stagnation. Center of Economic and Law Studies (CELIOS)