<![CDATA[The termination of criminal investigations through restorative justice represents a development in criminal law enforcement that places victim restoration, offender accountability, and conflict resolution as important components of the legal process. In cases of embezzlement, the application of this mechanism raises legal issues because the Indonesian Code of Criminal Procedure (KUHAP) in force at the time the case was handled did not explicitly recognize reconciliation as a ground for terminating an investigation, whereas Regulation of the Indonesian National Police No. 8 of 2021 provides a legal basis for investigators to terminate inquiries or investigations based on restorative justice. This study aims to analyze the implementation of the termination of criminal investigations through restorative justice in embezzlement cases at the Ilir Timur II Police Sector in Palembang, particularly in terms of legality, implementation mechanisms, police discretion, the effectiveness of case resolution, and legal certainty. This study employs empirical legal research using a socio-legal approach and a case study design. Data were obtained through legal document analysis, observation, interviews with police officers, victims, and offenders, as well as case-handling data from the Ilir Timur II Police Sector. Data were analyzed interactively through data condensation, data display, and conclusion drawing and verification (Miles, Huberman, and Saldaña 2014). The findings indicate that the termination of the investigation in Case No. B/92/IV/2023/SPKT/Polsek Ilir Timur II/Polrestabes Palembang was carried out through the investigation process, facilitation of reconciliation, fulfillment of the victim’s rights, and termination of the investigation based on restorative justice. The effectiveness of the resolution is reflected in the achievement of reconciliation and the restoration of the victim’s losses; however, challenges remain regarding the implementation of the settlement agreement and legal certainty in the event that the agreement is not fulfilled. This study identifies a normative tension between Article 109 paragraph (2) of the KUHAP and Regulation of the Indonesian National Police No. 8 of 2021, indicating that the practice of restorative justice at the police level has developed through police discretion and sectoral regulations. The novelty of this study lies in its empirical analysis of the relationship between the legal norms governing the termination of investigations, police discretion, and the implementation of restorative justice at the police-sector level.Keywords: Restorative Justice; Termination of Investigation; SP3; Embezzlement; Police Discretion; Legal Certainty.]]>
