This study examines the implementation of restorative justice in the Indonesian criminal justice system and the exercise of investigative discretion. It focuses on the different standards established under Indonesian National Police Regulation Number 8 of 2021, Prosecutor’s Regulation Number 15 of 2020, and Supreme Court Regulation Number 1 of 2024, while considering Law Number 20 of 2025 on the Criminal Procedure Code as the latest statutory framework. This study employs normative legal research using statutory and conceptual approaches. Legal materials are examined qualitatively through statutory interpretation and an analysis of discretion, victim protection, and institutional accountability. The findings indicate that Law Number 20 of 2025 has paved the way for a more integrated restorative justice framework. However, differences in standards, procedures, and legal consequences under the Police Regulation, Prosecutor’s Regulation, and Supreme Court Regulation still require further harmonisation. The broadest discretion remains at the investigation stage because the Police Regulation contains open-ended criteria that require investigators to exercise judgment. Without clear guidelines, effective supervision, and adequate accountability, such authority may produce inconsistent decisions and increase the risk of arbitrary or improper use of power. The effectiveness of restorative justice therefore depends on the alignment of institutional regulations, control of investigative discretion, meaningful victim recovery, offender responsibility, and institutional accountability.