We realize that a supporting policy is required since the challenges to funding in the future will become more difficult.
Jakarta (ANTARA) - The National Development Planning (PPN) Ministry released the Guideline on Blue Finance Instrument Development here on Tuesday in collaboration with the Finance Ministry, Coordinating Ministry for Maritime Affairs and Investment, and other stakeholders.

PPN Minister Suharso Monoarfa said that the issuance of the guidelines is aimed at bolstering and expediting the development of national economic growth as well as pursuing the achievement of the sustainable development goal (SDG) targets, especially Goal 13 on climate action and Goal 14 on life below water.

"We realize that a supporting policy is required since the challenges to funding in the future will become more difficult,” he added.

Hence, to face these challenges, his ministry is striving to strengthen the development of the blue economy by preparing a solid foundation for the planning and implementation of blue economy policies in Indonesia in the future, such as through the issuance of the guidelines.

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The government issued green sukuk bonds worth US$1.2 billion in 2018 as well as SDG bonds in 2021, which managed to raise up to €500 million, as funding instruments for several strategic projects in Indonesia.

However, funding instruments have not covered the sustainable marine development sector, the minister noted.

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"Hence, it is expected that through this blue funding, various innovative funding instruments can be developed and improve the existing instruments," he added.

The success of the SDG bond and green sukuk issuance has demonstrated Indonesia's ability to manage environmental issues and develop innovative and sustainable funding mechanisms, he observed.

"We hope that this (new blue finance) instrument, which we are currently working on, will be one of the solutions to meeting the funding gap in the marine and fisheries sector in the future to achieve the development targets of the SDGs and the blue economy," Monoarfa said.

He further said he hoped that the Guideline on Blue Finance Instrument Development would help the government and the private sector in establishing various quality funding instruments to finance sustainable blue economy activities.

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Translator: Muhammad Heriyanto, Uyu Liman
Editor: Fardah Assegaf
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