A New Paradigm of Economics: Fiscal Support for Restorative Economy

The report titled "A New Paradigm of Economics: Fiscal Support for Restorative Economy", published by the Center of Economic and Law Studies (CELIOS), highlights the critical role of fiscal policy in supporting initiatives aimed at repairing environmental damage and addressing social inequalities resulting from unsustainable economic practices. The report estimates that Indonesia will need IDR892.15 trillion by 2045 to effectively implement restorative economic strategies across various sectors. Restorative economics is essentially a green economy concept centered on nature and people's well-being, bringing harmony to the nature-human relationship so as to protect and restore natural functions.

The main findings of this report reveal two main challenges in the development of restorative economics in Indonesia: investment gaps and policy limitations. Despite growing awareness of sustainable practices, Indonesia still lacks a dedicated budget for restorative economy initiatives, which often lag behind other sustainability efforts such as renewable energy and climate change mitigation in terms of investor interest and government prioritization.

Download the report to learn more about recommendations for fiscal support for the implementation of restorative economic systems.