Indonesia Unveils Coral Reef Bonds to Protect Marine Ecosystems
In a groundbreaking move, the Indonesian government has launched a novel financial instrument, the Coral Reef Bond, to bolster marine conservation efforts. This initiative aims to secure substantial funding to safeguard vital underwater ecosystems and achieve ambitious conservation targets.
Innovative Funding for Conservation
The Indonesian government is now utilizing the Coral Reef Bond, designed to generate up to 200 million U.S. dollars annually for marine conservation. This unique approach, described by Sakti Wahyu Trenggono, the Minister of Maritime Affairs and Fisheries, as a “results-based funding instrument,” steers clear of both state debt and direct government funding.
The introduction of the bond occurred during the Third United Nations Ocean Conference, held in Nice, France, from June 9-13, 2025. The initiative is a central part of the government’s aim to conserve 30 percent of its marine areas by 2045.
Conservation Priorities
Three key conservation areas will be prioritized. These include the Raja Ampat National Conservation Area, the Raja Ampat Regional Conservation Area, and the Alor Islands Regional Conservation Area, according to Trenggono. The funds from the bond will be managed to ensure measurable and sustained conservation outcomes in these locations.
“Indonesia will manage the funds from the foregone coupon to ensure measurable and sustainable conservation outcomes at those locations,”
—Sakti Wahyu Trenggono, Minister of Maritime Affairs and Fisheries
Globally, marine protected areas cover approximately 8% of the ocean, yet many still lack sufficient funding for effective management (UNEP 2024).
The Future of Marine Protection
This innovative financial tool represents a pivotal stride in marine conservation, potentially serving as a model for other nations seeking to safeguard their marine environments. The focus on measurable outcomes further solidifies its commitment to effective and sustainable conservation strategies.
