US, Indonesia Sign Landmark Debt-for-Nature Swap for Coral Reef Conservation

TEMPO.CO, Jakarta - The United States, Indonesia, and several non-governmental organizations (NGOs) inked a pioneering debt-for-nature swap agreement on July 3, 2024. This agreement will utilize a US$35 million or Rp569 billion debt transfer to bolster Indonesia's critical coral reef ecosystem conservation.

This landmark accord marks the US' fourth agreement with Indonesia under the Tropical Forest Conservation Act (TFCCA), reauthorized in 2019 as the Tropical Forest and Coral Reef Conservation Act. Significantly, it's the first to prioritize coral ecosystems, representing a pivotal step in safeguarding the biodiversity of one of the world's most vibrant marine environments.

Signatories to the agreement included the Chargé d'Affaires ad Interim (KUAI) of the US Embassy to Indonesia, Michael Kleine; the Director General of Marine and Marine Space Management of the Indonesian Ministry of Maritime Affairs and Fisheries; the Director General of Financial Budget and Risk Management of the Ministry of Finance; representatives from the Nusantara Nature Conservation Foundation (YKAN) and the Indonesian Cakrawala Conservation Foundation (YKCI); and officials from Conservation International and The Nature Conservancy.

“By forgiving this debt and redirecting the funds back to Indonesia through this debt-for-nature swap, we are taking concrete action to protect Indonesia's invaluable coral reefs and support sustainable development,” Kleine said as quoted from the press release today, July 9.

Meanwhile, Victor Gustaaf Manoppo, Director General of Marine and Marine Space Management, emphasized Indonesia's unwavering commitment to preserving healthy coral reefs and marine ecosystems, aligning with national development policy. He underscored that this agreement reinforces the concept of healthy oceans as a global concern demanding shared responsibility.

“What has been agreed upon by the governments of the Republic of Indonesia and the United States benefits not only Indonesian waters and local people but also the global community, Victor said.

Indonesia is home to 16 percent of the world's coral reef areas and approximately 60 percent of the world's coral species. These coral reefs provide sustenance, livelihoods, and crucial storm protection for half the global population. However, a staggering 75% of coral reefs worldwide face imminent threats. 

This debt transfer program will divert resources previously earmarked for debt repayment toward initiatives that support coral reef ecosystem conservation. This initiative underscores the unwavering commitment of both Indonesia and the United States to the significance of coral reefs and their collaborative efforts to tackle the pressing issue of coral reef protection.

An Oversight Committee comprised of representatives from the Indonesian and US governments, NGO partners, and other civil society organizations will oversee the funds generated from the debt transfer program. The program will focus on the Lesser Sunda, Banda, and Bird's Head Seascapes in West Papua.

SUCI SEKARWATI | D.E.M

Editor's Choice: Environment Ministry Leads Coral Fragment Transplantation in Indonesia's East Nusa Tenggara

Click here to get the latest news updates from Tempo on Google News