The criminal justice system in Indonesia has traditionally focused on a retributive approach that prioritizes punishment, often neglecting victim recovery and social harmony. This normative legal research examines the application of restorative justice in resolving minor criminal offenses in Indonesia. The study employs statutory, conceptual, and case approaches, utilizing primary legal materials including the Criminal Procedure Code (Law Number 20 of 2025), Supreme Court Regulation Number 1 of 2024, Police Regulation Number 8 of 2021, and Prosecutor Regulation Number 15 of 2020, as well as secondary sources and court decisions, including District Court Rembang Decision Number 10/Pid.C/2025/PN Rbg and District Court Tanjung Selor Decision Number 72/Pid.Sus/2025/PN Tjs. The findings reveal that while Indonesia has established a comprehensive legal framework for restorative justice, its implementation in judicial practice faces challenges such as inconsistent judicial interpretation, lack of standardized objective criteria, limited understanding among law enforcement officials, and concerns about potential abuse of authority. Data shows that only 2.80% of judges explicitly cite Supreme Court Regulation Number 1 of 2024 in their decisions, despite 3,353 cases using restorative approaches in 2025. The research concludes that optimizing restorative justice requires strengthening legal education, developing clear and measurable guidelines, enhancing coordination among law enforcement institutions, and improving public awareness to support voluntary participation in restorative processes. A balanced approach between punishment and restoration is essential to achieve substantive justice for victims, perpetrators, and society.