This coral bond is the world's first financing model for the management of coral reef protection.
Kupang, E Nusa Tenggara (ANTARA) - Maritime Affairs and Fisheries Minister Sakti Wahyu Trenggono introduced the Indonesia Coral Bond at the 38th general meeting of the International Coral Reefs Initiative (ICRI) in Jeddah, Saudi Arabia.

The meeting took place from September 9–13, 2024.

In a statement received here on Friday, Trenggono said that the Indonesia Coral Bond has been designed as part of the blue economy policy to expand the country's marine protected area to 30 percent of the total area by 2045.

Healthy coral reefs will ensure the availability of proteins for the world's population, which is expected to swell to 9.3 billion by 2050, he explained.

"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 USD100 million–USD200 million per year," he pointed out.

He then invited the private sector, philanthropists, and the community to invest in preserving coral reefs.

He said that coral reefs cannot be maintained by one country alone. Mutual awareness and assistance are needed for the purpose, especially in the form of grants and non-debt investments as well as other sustainable funding innovations, he added.

Director of marine space management at the Maritime Affairs and Fisheries Ministry Victor Gustaaf Manoppo informed that the Indonesia Coral Bond is a funding instrument that does not come from the government and is non-debt.

It will be used to increase the effectiveness of conservation area management in a measurable way using the International Union for Conservation of Nature (IUCN) Green List standards.

"This coral bond is the world's first financing model for the management of coral reef protection," he explained.

ICRI is a global partnership involving countries and organizations that strive to conserve coral reefs and their ecosystems. To date, 45 countries and 101 individuals have joined the global partnership, including Indonesia.

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Translator: Sinta A, Kenzu
Editor: Rahmad Nasution
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