Government of Indonesia and Development Partners Promote Blue Finance for Marine Conservation in Indonesia

The Ministry of Marine Affairs and Fisheries (MMAF) and the Yayasan Konservasi Alam Nusantara (YKAN) convened the Indonesia Blue Finance Development Partners Roundtable Discussion on Tuesday, 15 October 2025, in Jakarta. The meeting marked a strategic step to strengthen coordination and align the direction of blue finance efforts in support of Indonesia’s target to protect 30 percent of its marine areas by 2045, known as the Marine Protected Area (MPA) 30x45 vision.

Blue finance efforts currently face challenges in aligning scales and priorities among institutions, donors, and the private sector. Therefore, this forum was designed to enhance synergy, identify potential collaborations, and formulate a comprehensive coordination framework for Indonesia’s blue finance architecture.

The forum brought together representatives from national and international institutions, including the Ministry of Marine Affairs and Fisheries, the Ministry of National Development Planning (Bappenas), the Indonesia Environment Fund (IEF), the Asian Development Bank, the British Embassy, the New Zealand Embassy, the Canadian Embassy, GIZ, the Global Fund for Coral Reefs (GFCR), as well as development partners such as YKAN, WWF, KI, and RARE.

Indonesia is home to some of the world’s richest marine ecosystems, including coral reefs, seagrass meadows, and mangrove forests that support coastal livelihoods, fisheries, and climate resilience. The Indonesian government recognizes the marine sector as an integral part of its sustainable development and blue economy strategy.

Through the MPA 30x45 vision, Indonesia reaffirms its leadership in global ocean governance and its contribution to Sustainable Development Goal (SDG) 14 “Life Below Water” and the Kunming-Montreal Global Biodiversity Framework.

Firdaus Agung, Director of Ecosystem Conservation at MMAF, emphasized the importance of sustainable financing to achieve national marine conservation targets.

“Indonesia’s marine biodiversity is a global asset. To safeguard it, we need an integrated financing system that connects public funds, donor grants, concessional financing, and private investment within a unified results framework that benefits both nature and coastal communities,” he explained.

From the national funding perspective, Joko Tri Haryanto, President Director of the Indonesia Environment Fund (IEF), highlighted the crucial role of public finance institutions in bridging conservation needs with sustainable funding sources.

“IEF is committed to serving as a catalyst for blue finance in Indonesia. Through transparent and accountable management of environmental funds, we aim to ensure that financing not only supports nature conservation but also empowers coastal communities as key actors in the blue economy,” he stated.

Strengthening Synergy for Blue Finance in Indonesia

In recent years, Indonesia has introduced various blue finance innovations, such as coral bonds for reef rehabilitation, conservation performance-based impact bonds, and parametric reef insurance schemes providing rapid post-disaster ecosystem recovery support.

“Indonesia needs a blue finance architecture that is not only innovative but also inclusive. Through this dialogue, we aim to ensure that mechanisms such as coral bonds, impact bonds, the Biru Fund, and ecosystem insurance schemes are aligned with government priorities and deliver tangible benefits to conservation areas and coastal communities,” said Ahmad Baihaki, YKAN Impact Investment Lead.

YKAN, with support from GFCR, is currently developing the Biru Fund, a blended finance initiative that channels funding to small and medium enterprises and community groups in the blue economy sector—linking conservation objectives with improved local livelihoods.

The Biru Fund was established following preliminary assessments revealing the lack of financial support for community-based enterprises that have positive environmental impacts. Beyond financing, the program also provides capacity-building and mentoring to ensure that grantees can grow sustainably and deliver wider benefits.

Meanwhile, Hee Sung Kim, GFCR Program Coordinator, noted the range of support that international partners are providing to Indonesia’s marine conservation agenda.

“Indonesia holds a strategic position at the heart of the Coral Triangle. Supporting blue finance here is not only an investment for Indonesia but also for the health of the world’s oceans. The task at hand is immense, which calls for closer alignment of public, donor, and private financing,” she noted.

The meeting concluded with an initial agreement to develop a coordination framework for Indonesia’s blue finance, mapping institutional roles, defining principles of financial synergy, and harmonizing mechanisms between public and private investments. Participants also agreed to establish a blue finance working group to sustain ongoing dialogue and collaborative implementation.

Through this initiative, Indonesia aims to build a blue finance system that is measurable, transparent, and impactful.

“Blue finance is not merely about funds. It’s about ensuring that the ocean remains a source of life for future generations,” concluded Firdaus Agung.