This article examines the implementation of the restorative justice approach in juvenile criminal cases within the Indonesian criminal justice system, with a specific focus on diversion as mandated by Law No. 11 of 2012 on the Juvenile Criminal Justice System (Undang-Undang Sistem Peradilan Pidana Anak/UU SPPA). Indonesia has formally adopted restorative justice as a guiding principle in handling children in conflict with the law, emphasizing the best interests of the child, rehabilitation, and social reintegration rather than retribution. Despite this strong normative framework, empirical evidence shows a persistent gap between legal ideals and practice, including low diversion rates at the national level and significant regional disparities. Using a qualitative research design based on doctrinal analysis and literature review, this study explores the legal basis of restorative justice, its operationalization through diversion at the stages of investigation, prosecution, and trial, and the multi-dimensional challenges that hinder its effective application. The findings indicate that legal, institutional, and socio-cultural obstacles—such as regulatory disharmony, limited institutional capacity, insufficient training of law enforcement officials, and a prevailing punitive legal culture—constrain the realization of restorative justice. The article concludes by offering recommendations to strengthen regulatory coherence, build capacity for restorative mediation, and promote a child-rights oriented legal culture as prerequisites for optimizing restorative justice in juvenile cases