Restorative Economy Blueprint Offers Nature-Based Development Lessons for the Philippines

Restoring watersheds, supporting agroforestry, and directing finance toward local communities could become part of a broader economic development strategy for Southeast Asia, according to organizations that presented their work at Bangkok Climate Action Week 2026.

Indonesian researchers, organizations, and local leaders outlined a restorative economy approach: building economic activity that replenishes ecosystems while supporting livelihoods.

For the Philippines, the discussions offer regional lessons on connecting environmental restoration with rural development and community participation.

What the economic projection actually covers

Research from Indonesia’s Center of Economic and Law Studies (CELIOS) estimates that restorative economic practices could generate Rp 2,208 trillion in Indonesian national economic output over 25 years. The release puts that at approximately ₱8 trillion or more than US$140 billion.

The study also projects a 15 percent reduction in income inequality.

These are projections for Indonesia, not an estimate of Philippine earnings or benefits. The Philippine relevance lies in the policy approaches and community-led models discussed, rather than a quantified local economic forecast.

Making finance reach local communities

On October 5, CELIOS joined PINUS Indonesia, The Reform Initiatives, and Publish What You Pay Indonesia for a session examining green finance, fiscal policy, and grassroots benefit-sharing.

The discussion covered Ecological Fiscal Transfers, ecological taxes, and windfall profit taxes as possible ways to direct resources toward environmental priorities and local economies.

Indonesia’s use of Ecological Fiscal Transfers across 43 subnational governments was presented as an example of linking fiscal resources with environmental performance and development.

“We must elevate the nature-based economy beyond basic conservation and position it at the center of national economic strategy,” said Bhima Yudhistira, executive director of CELIOS.

He emphasized fair financing mechanisms and transparent benefit-sharing so communities can participate in the gains from the transition.

Watershed restoration as productive investment

Cendekia Iklim Indonesia (CII) focused on how healthy watersheds support livelihoods and local economic activity.

Its program, “Wealth That Flows: Building Prosperity Through Watershed Regeneration in Southeast Asia,” included a discussion on agroforestry—combining trees with agricultural production as part of landscape management.

Examples included coffee and macadamia agroforestry in Doi Tung, where farming forms part of a wider approach to restoring landscapes and supporting communities.

CII argued that restoration should be treated as an investment that creates value. Its approach connects ecosystem recovery with water security and rural livelihoods.

Connecting producers, investors, and policymakers

The Nature-Based Economy Pavilion, organized by Koalisi Ekonomi Membumi (KEM) at Lumpini Park from October 5–7, brought together social entrepreneurs, investors, civil society, researchers, and policymakers.

The pavilion explored how biodiversity-based businesses can connect local production with finance and policy while protecting social and environmental well-being.

“Climate action strategies cannot operate in isolation; they require active, cross-sector collaboration,” said Fito Rahdianto, executive director of KEM.

For the Philippines, the framework raises a practical development question: how can financing, farming, and local enterprise help restore the natural systems that communities depend on? The discussions offer possible approaches, but applying them locally would require Philippine-specific research, financing arrangements, and community participation.