Since Indonesia enacted the Village Law of 2014, fiscal transfers from the central and district governments to villages have increased markedly. As a consequence, high expectations are placed on villages to initiate local-level approaches to peatland restoration. Inclusion of a wide range of community stakeholders in the processes of determining these initiatives is assumed to produce sustainable development outcomes. To analyze village initiatives and determine to what extent villages have earmarked parts of their budgets for environmental programs, this chapter examines the case of Pelalawan District in Riau Province. To examine how local communities have been involved in the process of planning such initiatives, it focuses on one village, Rantau Baru. Our study found that villages have started to plan and execute low-cost programs for environmental protection. However, budgeted programs for environmental protection accounted for only a tiny proportion of total village expenditure; therefore, these initiatives represent only small and gradual change. Moreover, power in decision-making processes tends to be limited to a few village officials. Our quantitative survey on participation in village development meetings also indicates that such meetings are dominated by local elites, to be more specific, by peatland owners and educated people. Given that Rantau Baru completely complies with the existing rules for community engagement, more innovative arrangements beyond existing regulations are needed to engage a wide range of actors in budget-making processes.