Riau Islands Provincial Government Accelerates BLUD-FMS Implementation to Support Sustainable Funding for Marine Conservation Area Management

On 19 June 2025, the Riau Islands Provincial Government, supported by the Nusantara Nature Conservation Foundation (YKAN) through the Koralestari Program, held an inter-agency meeting across Regional Apparatus Organizations (OPD) to accelerate the implementation of the Regional Public Service Agency-Financial Management Scheme (PPK-BLUD) at the Regional Technical Implementation Unit (UPTD) managing Marine Conservation Areas in the Riau Islands Province.

“This Public Service Agency (BLUD) scheme is one of the public service innovations introduced by the government to improve services to the public in a broad sense. We express our gratitude to YKAN for its invaluable assistance in facilitating the implementation of PPK-BLUD at the UPTD, which is responsible for managing Marine Conservation Areas in the Riau Islands Province. This is crucial for environmental conservation efforts while also providing significant economic benefits. The marine sector is one of the main revenue sources for the Riau Islands Province,” explained the Regional Secretary of the Riau Islands Province, Adi Prihantara.

The Marine Conservation Area in the Riau Islands Province managed by the local government spans 1,716,538.25 hectares. Two designated Conservation Areas are the Eastern Bintan Island Marine Tourism Park Conservation Area and the Conservation Area in the Waters of Bintan II-Tambelan. Additionally, efforts are currently underway to upgrade the status from proposed to designated in three areas: Lingga waters, Batam waters, and Natuna waters.

“Dependence on unstable or limited funding sources can hinder ecosystem protection and restoration efforts. By implementing PPK-BLUD, UPTD Marine Conservation Areas in the Riau Islands Province will have direct flexibility to manage revenue from environmental service fees and other income for the operational activities of conservation areas without going through the regional budget (APBD) mechanism,” stated the Head of the Riau Islands Province Marine and Fisheries Department, Said Sudrajad.

Said added that the conservation area management budget would be used for controlling the utilization of zoning areas, supervision activities, monitoring area resources, raising awareness, environmental education, and promoting sustainable tourism activities to preserve ecology and enhance the economic benefits of conservation areas for communities.

At the meeting, all OPDs supported and agreed on accelerating the implementation of PPK-BLUD at the UPTD managing Marine Conservation Areas in the Riau Islands Province. The follow-up to this meeting will involve drafting a submission letter to the Governor of the Riau Islands, Ansar Ahmad, regarding the implementation of the BLUD system, accompanied by six administrative requirements for the BLUD UPTD managing Marine Conservation Areas in the Riau Islands Province. Simultaneously, a BLUD Implementation Assessment Team for the UPTD managing Marine Conservation Areas in the Riau Islands Province will be formed, led by the Regional Secretary of the Riau Islands Province, Adi Prihantara. The Ministry of Home Affairs will provide technical guidance and a feasibility assessment for the BLUD UPTD managing Marine Conservation Areas in the Riau Islands Province.

“Through the implementation of the Koralestari Program supported by the Global Fund for Coral Reefs (GFCR), YKAN is currently striving to support the emergence of innovative funding sources for coral reef conservation and restoration in Indonesia, relying on self-sustained funding. One of the Koralestari Program locations is in the Riau Islands Province. The implementation of BLUD will support professional management backed by sustainable funding schemes for conservation area management institutions,” concluded YKAN Indonesia Ocean Program Director Muhammad Ilman.

About Koralestari

Koralestari aims to address funding gaps related to coral reef conservation and restoration through innovative financing schemes and investments in reef-friendly enterprises. These solutions cover blue carbon, coral reef insurance, self-financing marine conservation areas via BLUD, sustainable commodity development, and community-based funding facilities. This program will run from 2024 to 2029 in the Sawu Sea (East Nusa Tenggara), Berau (East Kalimantan), and Lingga (Riau Islands).