ASIATODAY.ID, NICE – The Indonesian delegation unveiled a groundbreaking marine finance innovation during a side event titled “Indonesia Coral Reef Bond: The World’s First Outcome Bond for Marine Protected Areas and Its Underlying Strategic Activities” at the Third United Nations Ocean Conference (UNOC), held from June 9–13, 2025, in Nice, France.
Indonesia’s Minister of Marine Affairs and Fisheries, Sakti Wahyu Trenggono, emphasized that the initiative marks a concrete step toward achieving the country’s goal of protecting 30% of its marine areas by 2045. It also aims to bridge the estimated annual conservation funding gap of USD 100–200 million.
“The Coral Reef Bond is the world’s first outcome-based financing instrument for conservation that utilizes non-sovereign and non-debt funding sources, with principal protection guaranteed by the World Bank,” Minister Trenggono stated.
This innovative financing mechanism supports the enhancement of marine protected area (MPA) management effectiveness, measured using the globally recognized IUCN Green List standards, with fish biomass recovery as a key indicator.
A Breakthrough in Conservation Finance
The initiative will initially focus on three priority conservation sites: the Raja Ampat National Marine Conservation Area, the Raja Ampat Regional Conservation Area, and the Alor Islands Regional Conservation Area. Indonesia will manage the forgone coupon proceeds to ensure measurable and sustainable conservation outcomes in these areas.
Siti Hediati Soeharto, Chair of Commission IV of the Indonesian House of Representatives, who also delivered remarks at the event, hailed the introduction of the Coral Reef Bond as a major milestone in conservation finance innovation. She stressed the importance of policy and regulatory support to ensure such initiatives can scale and deliver real impact.
The side event brought together international panelists from institutions such as the United Nations, World Bank, Global Environment Facility (GEF), BNP Paribas, and UNESCO-IOC. Discussions centered on the opportunities and challenges of conservation financing and strategies to mobilize private sector investment for marine sustainability.
Indonesian Deputy Minister of Foreign Affairs Arif Havas Oegroseno, who moderated the panel discussion, emphasized that the Coral Reef Bond could serve as a global model for sustainable and measurable ocean conservation financing. He expressed hope that the approach would be replicated by other countries in the future.
The Coral Reef Bond initiative is a cross-agency collaboration involving the Ministry of Marine Affairs and Fisheries, Bappenas (National Development Planning Agency), Ministry of Finance, BRIN (National Research and Innovation Agency), World Bank, GEF, BNP Paribas, and IUCN. This multi-stakeholder partnership reflects Indonesia’s holistic approach to achieving ambitious conservation goals.
Approximately 180 participants from various countries and sectors—including government agencies, NGOs, academia, private companies, and other stakeholders—attended the side event.
Minister Trenggono concluded with a call to the global community:
“Protecting coral reefs cannot rest on the shoulders of a single country. I invite the private sector, philanthropic institutions, and the public to invest in safeguarding the sustainability of coral reef ecosystems,” he said. (AT Network)
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