The US and Indonesian governments, alongside key implementing partners of the Global Fund for Coral Reefs (GFCR) in Indonesia — Yayasan Konservasi Alam Nusantara (YKAN) and Yayasan Konservasi Cakrawala Indonesia (YKCI) — as well as Conservation International and The Nature Conservancy, announced this week that they have signed a US$35 million (~€32 million) debt-for-nature swap to protect Indonesia’s vital coral reef ecosystems.
Focusing on the Bird’s Head Seascape, the Lesser Sunda and Banda Seascape, the agreement is the first debt-for-nature swap facilitated under the Tropical Forest and Coral Reef Conservation Act (TFCCA) dedicated to coral reef ecosystems.
The landmark deal includes several key provisions including a reduction of $35 million in Indonesia’s debt payments to the US Government over the next nine years; a commitment from the Indonesian government to establish a conservation fund dedicated to the protection and restoration of coral reefs; and vital support for local organizations actively engaged in safeguarding coral reef ecosystems and coastal communities.
Additionally, the deal promotes ocean-positive initiatives, such as the strengthening of marine protected areas, enhancement of natural resource management, and development of sustainable livelihoods across Indonesia.
Leticia Carvalho, Head of UNEP’s Marine and Freshwater Branch and co-chair of the GFCR, stated:
“By redirecting funds originally allocated for debt repayment, this landmark debt-for-nature swap is unlocking a new and innovative source of funding for conservation of Indonesia’s coral reef ecosystems.”
She added:
“The Global Fund for Coral Reefs is proud to support this landmark agreement at the heart of the Coral Triangle, as it not only builds upon the decades of innovative conservation funding unlocked through the U.S. Tropical Forest and Coral Reef Conservation Act, but will strengthen local community engagement by creating local foundations to support small grants to NGOs and local communities, and an opportunity to further expand public-private partnerships.”
Indonesia is home to 16 percent of the world’s coral reef areas and approximately 60 percent of the world’s coral species. The value of goods and services provided by coral reefs in Indonesia — including fisheries, shoreline protection, and tourism — are estimated at $1.6 billion (~€1.46 billion) per year. However, Indonesia’s coral reefs are facing a myriad of threats, ranging from climate impacts, to overfishing and unsustainable tourism practices.
Konservasi Indonesia Chairperson Meizani Irmadhiany said:
“This debt-nature-swap funding will help accelerate the attainment of Indonesia’s vision to protect 30 percent of its waters and enhance management effectiveness of its coral reef. It is also an important and strategic stride for Indonesia in the establishment of a future blended conservation financing mechanism. Supported by various strategic partners including the Global Fund for Coral Reefs, Konservasi Indonesia will be represented in the grant oversight committee that will establish a strategic plan and oversee its implementation. In parallel with the grant program, Konservasi Indonesia will work to strengthen the capacity of the coral-dependent communities to have access to the grant.”
