This study examines the implementation of Diversion within Indonesia’s Juvenile
Criminal Justice System as regulated in Law No. 11 of 2012 (SPPA), which emphasizes
restorative justice and the best interest of the child. Diversion is required at every stage
of the process investigation, prosecution, and trial when the offense carries a sentence
under seven years and is not a repeat offense. Its purpose is to prevent children from
experiencing the negative impacts of formal punishment, including stigma and
psychological harm. A major obstacle arises when the child is unable to meet the
victim’s financial restitution demands during mediation. The SPPA provides no
specific procedure for situations in which a child lacks the economic capacity to pay,
resulting in legal uncertainty. Insisting on financial compensation contradicts the
principle of the child’s best interest and often causes Diversion to fail. This normative-
empirical research analyzes the role of the Police at the Yogyakarta Resort Police in
addressing this problem. The findings show that investigators act not only as
facilitators but also as mediators who maintain fairness. When the child cannot pay, the Police use professional discretion to redirect the agreement toward non-material resolutions, such as apologies, community service, or behavioral commitments, ensuring Diversion can continue and the child’s future remains protected.