ASIATODAY.ID, JAKARTA – Minister of Maritime Affairs and Fisheries of the Republic of Indonesia, Sakti Wahyu Trenggono introduced the sustainable blue funding innovation ‘Indonesia Coral Bond’ at the 38th General Meeting of the International Coral Reefs Initiative (ICRI GM 38) which took place in Jeddah, Saudi Arabia on 9-13 September 2024.
In front of 20 country representatives who were present as well as 25 representatives of coral reef activists/management institutions, Minister Trenggono explained that the sustainable blue funding innovation of Indonesia Coral Bond or Indonesian Coral Reef Bonds is part of the blue economy policy of the Ministry of Maritime Affairs and Fisheries, namely expanding marine conservation areas up to 30 percent by 2045.
According to Minister Trenggono, healthy coral reefs will guarantee the availability of protein for the world’s population, which will reach 9.3 billion in 2050 or grow by more than 30 percent with protein needs increasing by 70 percent.
“With the various important roles of coral reefs, we are faced with a lack of funding to protect and preserve coral reefs. “The estimated funding gap for marine protected areas in Indonesia is US$100 to US$200 million per year,” he explained.
On this occasion, Minister Trenggono invited the private sector, philanthropists and the public to become investors who help protect and maintain the existence and sustainability of coral reefs.
He also emphasized that all efforts to protect and manage coral reefs cannot be borne by one country. Joint concern and support is needed, especially funding in the form of grants and non-debt investments as well as other sustainable funding innovations.
For your information, ICRI is a global partnership between countries and organizations that strive to conserve coral reefs and their ecosystems. To date, 45 countries and 101 people have joined this global partnership, including Indonesia.
In line with this, the Director General of Maritime and Marine Spatial Management, Victor Gustaaf Manoppo, explained that the Indonesia Coral Bond is a non-sovereign and non-debt funding instrument used to increase the effectiveness of conservation area management in a measurable manner using IUCN Green List standards.
“This coral bond is the first financing model in the world for managing conservation areas through protecting coral reefs,” explained Victor.
He further explained that investors/private parties will invest in bonds issued by the World Bank to finance conservation activities at designated locations for 5 years.
Furthermore, investors will receive profit compensation from the outcome payer (GEF) if the conservation area meets the outcomes according to IUCN Green List standards. Meanwhile, the basic investment costs will be protected or guaranteed by the World Bank.
Not only that, Victor also mentioned Indonesia as the beneficiary of bonds issued by the World Bank amounting to US$ 10 million and which the World Bank will distribute to the Environmental Fund Management Agency of the Ministry of Finance as financial manager (Project Management Unit).
“The Environmental Fund Management Agency will open a blue window and the Regulation of the Minister of Maritime Affairs and Fisheries regarding sustainable funding is being processed in parallel. “In this case, the Ministry of Maritime Affairs and Fisheries is one of the members of the Steering Committee of the Environmental Fund Management Agency,” said Victor.
Meanwhile, on the same occasion, Expert Staff to the Minister of Maritime Affairs and Fisheries for Ecology and Marine Resources, Hendra Yusran Siry, also revealed that the Indonesia Coral Bond will be implemented for 5 years starting in 2025 in 3 conservation area locations, namely the Raja Ampat National Conservation Area, Conservation Area Raja Ampat Region, and the Alor Islands Aquatic Park Regional Conservation Area.
The aim is none other than protecting coral reefs by increasing the effectiveness of conservation area management so that the condition of coral reefs and fish biomass is maintained or increases from the baseline.
“Through the Indonesia Coral Bond, the three selected marine conservation areas will have conservation results that are independently verified in accordance with the Green List of Conservation and Protected Areas (IUCN Green List) so that these conservation areas increase their management effectiveness and provide ecological and economic impacts,” concluded Hendra . (AT Network)
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