<![CDATA[The transition toward a sustainable bioeconomy in Indonesia is severely hindered by institutional governance failures rather than regulatory deficits. This study evaluates the structural bottlenecks within centralized governance and the policy capacity deficits of the state apparatus in driving circular economy transformations. Utilizing a multi-method qualitative design, this research integrates institutional policy analysis and socio-legal normative approaches. The findings reveal that extractive path dependence, scalar mismatches, and semantic hijacking have triggered severe policy lock-ins. Furthermore, the state bureaucracy exhibits acute analytical, operational, and political capacity deficits, rendering it captive to the hegemony of extractive industries. As a prescriptive intervention, this paper proposes the capability-based institutional reconstruction model. This framework advocates for executive meta-governance, durable legally binding designs, and polycentric tenure restitution for indigenous communities. Ultimately, accelerating this sustainable bioeconomy necessitates a shackled leviathan, a mission-oriented state rigorously constrained by democratic civic oversight to guarantee long-term ecological justice across the nation.]]>
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