Restorative Economy and its Successful Practices in West Kalimantan

Restorative economy is focused on maintaining environmental balance while ensuring economic activities meet the basic needs of all individuals. It emphasizes development and achieving prosperity while ensuring ecosystem sustainability for future generations. Thus, a restorative economy also promotes ecosystem restoration and enhances the social and cultural aspects of communities.

There are several principles in practicing restorative economy. The principle of well-being ensures opportunities and capabilities to achieve prosperity. Justice or equity principles apply within and between generations. Ecosystem boundaries principle aims to preserve, restore, and invest in environmental quality. Efficiency and sufficiency principles drive sustainable production and consumption patterns. Lastly, good governance principle emphasizes integrated, accountable, and resilient institutions.

The concept of restorative economy initially referred to the doughnut economics concept introduced by Kate Raworth and the Healthy Green Growth concept promoted by Per Espen Stoknes. Doughnut economics proposes a new economic approach where economic activities help all humans achieve well-being without degrading their environment. When running the economic activities, it must operate within the lower boundary to meet the basic needs of society and the upper boundary of the Earth’s supporting capacity and support.

To validate and align understanding of restorative economy, a Focus Group Discussion (FGD) on Restorative Economy Retreat was held on February 22-23, 2024. The FGD began with forming and informing sessions to introduce and deepen understanding of restorative economic terminology. This was followed by a brainstorming session discussing how maintaining forest ecosystems could enhance local quality of life, including GDP growth and availability of employment. It then continues with the Idea Market session formulated restorative economic data/research as national and regional strategies in Indonesia.

The intensive sessions resulted in several Creative Economy Index points. “Restorative Economy, the Ninja Path to Indonesia’s Recovery” was chosen as the primary outcome, including measuring the restorative economic index through data and societal well-being. The data is measured by income inequality ratios, poverty rates, competitiveness indexes, GDP and GRDP, employment rates, and food sovereignty. Well-being included Social inclusion and equality (gender, minority, disability, youth, and indigenous communities) or GEDSI, happiness index (state of mind and living) in local contexts or life satisfaction index, the ability to meet basic needs, or access to resources such as water; air; land; food; and health facilities. Household financial capacity and mental health index and freedom levels were also included in well-being indicators.

With these indicators, the Restorative Economy Index is expected to become an annual product that can be reviewed together as accountability to the public. Therefore, a communication strategy is needed to convey the narrative of the restorative economy. The FGD forum targeted four audience groups each with key messages.

Government with national and regional narratives, SMSEs (UMKM) consisting of small; medium; and large companies such as local conglomerates, and capital owners with communication messages as hero parties, and the public or community that cares about family protection and protecting God’s trust.

The FGD process that ended in late February 2024 has continued and is outlined through the 100 Regenerative Village Program (100RV). A large-scale farming solution program focusing on regenerative resource management and environmentally-based economics. The program aims to create long-term economic benefits and maintain natural balance, emphasizing sustainable and environmentally friendly production and integrating ecological principles into farming practices.

The selected supply, the process in progress, and the fulfillment of the demand occurring in the 100RV program targeted to resolve several issues. Supplies filled by community-based ecosystems of micro and small farmers make it easier for farmers to access capital and credit, open bank accounts, and credit checks from Bank Indonesia.

The process to improve post-harvest standards so that selling prices are higher will improve the quality and knowledge of farmers through agricultural mechanization and more modern agricultural methods and sustainability. One of the ways is by training and Agri Doctor, which equips farmers with the ability to compile RAB as needed. Then from the meeting of the demand, this can expand the market access of farmers who previously could only sell to middlemen, and become more varied.

One of the initiatives that has taken place is in West Kalimantan which is run between LTKL, Supernova, Madani, KEM, LBBT, Manka, and Huma. Through the Kalara Borneo project, this collaboration transforms diversity into prosperity. It all starts from untapped non-timber products. In the process, Kalara collaborates directly with local communities and farmers to create sustainable supply chains.

Health problems that are remembered such as diabetes, obesity, hypertension, and so on, add ‘the burden of struggle’ in the lives of Indonesian society. On one side, local non-wood plants from Borneo rainforests that grow naturally as sources of healthy ingredients are often wasted. One of the reasons is the lack of processing of these products into derivative products.

Cocoa and Maram (Eleiodoxa conferta), which originate from Borneo tropical rainforests, are often left behind due to lack of market access. This can worsen deforestation caused by land conversion and monoculture methods. This is another reason why Kalara Borneo involves close collaboration with farmers, indigenous communities, and cooperatives in creating high-value derivative products for B2B and B2C markets. This inclusive approach aims to balance economic growth and environmental preservation.

However, the challenging terrain of the rainforest in West Kalimantan makes Kalara Borneo face obstacles such as market access, convincing local communities to adopt sustainable practices, and maintaining a balance between profitability and environmental sustainability. These challenges trigger important lessons, emphasizing the crucial role of community involvement, adapting to market dynamics, and the importance of a holistic approach that considers economic, social, and environmental factors.

Kalara Borneo is still focusing on producing high-quality products that promote healthier consumption patterns. That’s why the maximization biodiversity in Borneo makes this brand introduce authentic products that not only display the exotic flavors of Borneo but also contribute to healthier lifestyle changes and address health issues in Indonesia.