This marine sector is also included in a national strategic plan for 2020-2024, through the maritime strategyJakarta (ANTARA) - The National Development Planning Ministry/National Development Planning Agency (Bappenas) has readied innovative funding through blue financing to fund Indonesia's marine and fisheries sector development program to achieve the target of Advanced Indonesia in 2045.
Acting Deputy of Maritime Affairs and Natural Resources of the Ministry of National Development Planning/Bappenas Vivi Yulaswati highlighted the need for innovative funding outside the state budget to achieve the marine sector target in 2045 of contributing 12.5 percent to the gross domestic products (GDP).
"This marine sector is also included in a national strategic plan for 2020-2024, through the maritime strategy. Marine fisheries in the Mid-Term National Development Program (RPJMN) also mentions the funding needed is estimated at US$4.3 billion, while the government, through the state budget, is only able to fund 20 to 25 percent of the needs," Yulaswati stated during a seminar titled "Sustainable Blue Financing" on Wednesday.
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Yulaswati later noted that the need for financing funds to achieve the sustainable development goals (SDGs) in 2030 reached US$4.75 billion.
"Hence, we aim to create innovative funding developments, one of which is through the blue economy activity project that is expected to cover the funding gap by 75 to 80 percent," she noted.
Earlier, the Coordinating Ministry for Maritime Affairs and Investment had developed a blue financing strategy in terms of funding innovation. Indonesia had issued earlier funding instruments, such as Green Bonds, or sukuk, which reached US$3.5 billion, and SDG Bonds in 2021 of around 500 million euros. SDG Bond was also planned to be able to reach Rp61 trillion.
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"However, innovative funding is still not sufficient to fulfill the needs of the marine sector. Therefore, to meet the current funding shortage, Bappenas is trying to develop blue bonds whose value will be identified from the development needs, especially in the marine sector," Yulaswati remarked.
In future, Bappenas plans to take several concrete steps, such as by preparing the Indonesia Blue Finance Instrument Guideline, which is an amalgamation of policies and strategies that have been prepared by the agency and the Coordinating Ministry for Maritime Affairs and Fisheries. This policy will later become a guideline for the development of innovative financing instruments for the marine sector.
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Translator: Aditya Ramadhan, Resinta S
Editor: Fardah Assegaf
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