Logging has depleted timber resources across a considerable portion of the world’s tropical forests, leaving them vulnerable to conversion to other land‐use types. This raises the question of whether management for restoration represents an economically viable alternative.

• In the tropics, selectively logged forests (that is, forests from which timber trees of harvestable size/value have been removed but the residual forest remains) represent an important restoration opportunity but are vulnerable to deforestation, raising the question of whether restoration through private enterprise is economically viable
• We examined the business environment for restoration concessions in Indonesia
• Business models remain largely aspirational because of high costs and the difficulties in realizing sufficient income from carbon markets, non‐timber forest products, and ecosystem services
• To achieve restoration goals, restoration managers must consider diverse means to generate income within a multiuse forest management plan
• Restoration concessions are a scalable policy instrument to stimulate private investment in restoration, but a favorable regulatory environment – one that minimizes costs and enhances business opportunities – is essential

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