Restorative Justice as A New Paradigm of Criminalization in Economic Crime in Indonesia

Abstract

Economic crimes, such as corruption, money laundering, and tax evasion, have far-reaching consequences on a nation’s economic stability and public trust in the legal system. Traditional punitive approaches, primarily retributive justice, often fail to restore financial losses suffered by victims and the state, and they do not always serve as effective deterrents. This paper explores restorative justice as a new paradigm in addressing economic crimes, shifting the focus from mere punishment to accountability, victim recovery, and social restoration. Restorative justice emphasizes active engagement between perpetrators, victims, and the community to find equitable solutions, including asset recovery and financial restitution. Unlike conventional criminalization, which frequently neglects victims’ needs, this approach fosters direct offender accountability, reduces recidivism, and strengthens public confidence in the justice system. By integrating mediation, compensation mechanisms, and rehabilitative programs, restorative criminalization ensures that perpetrators not only face legal consequences but also contribute to economic recovery. This study argues that the application of restorative justice in economic crime cases can enhance judicial efficiency, alleviate burdens on courts, and prevent repeat offenses. Additionally, it highlights the importance of legal reforms, institutional collaboration, and public participation in implementing a more holistic justice system. The findings suggest that adopting restorative justice can create long-term economic and social stability, making it a viable alternative to traditional punitive measures.