Nice, June 15, 2025 – The Europe Today: The Indonesian delegation has introduced a groundbreaking marine conservation financing innovation at the Third United Nations Ocean Conference (UNOC-3), held from June 9–13, 2025, in Nice, France. The initiative, known as the Indonesia Coral Reef Bond, is the world’s first outcome-based financing instrument dedicated to marine protected areas (MPAs), marking a major milestone in sustainable ocean governance.
The announcement was made during a dedicated side event titled “Indonesia Coral Reef Bond: The World’s First Outcome Bond for Marine Protected Area and Its Underlying Strategic Activities”, led by the Minister of Marine Affairs and Fisheries, Sakti Wahyu Trenggono.
In his official statement on Saturday, Minister Trenggono explained that this innovative financial instrument is a strategic effort to close the estimated annual conservation funding gap of US$100–200 million and to support Indonesia’s national target of protecting 30 percent of its marine areas by 2045.
“This Coral Reef Bond is the world’s first conservation-focused outcome bond using non-sovereign, non-debt financing sources with principal protection supported by the World Bank,” Trenggono stated. “It will be used to enhance the effectiveness of marine conservation area management in line with global standards such as the IUCN Green List, measured through indicators such as increased fish biomass.”
The bond’s implementation will initially focus on three priority conservation sites:
- Raja Ampat National Conservation Area
- Raja Ampat Regional Conservation Area
- Alor Islands Regional Conservation Area
Minister Trenggono further elaborated that funds will be managed through forgone coupon mechanisms to ensure sustainable and measurable conservation outcomes at these locations.
Calling on international cooperation, Trenggono emphasized, “The protection of coral reefs is a shared global responsibility. We invite the private sector, philanthropic institutions, and the broader community to support this innovative model of conservation financing.”
Chair of Commission IV of the Indonesian House of Representatives (DPR RI), Siti Hediati Hariyadi, who was present at the event, praised the Coral Reef Bond as a landmark initiative in conservation finance, reinforcing Indonesia’s leadership in marine sustainability efforts.
Deputy Minister of Foreign Affairs, Arif Havas Oegroseno, who facilitated the panel discussion, highlighted the broader implications of this approach, stating, “The Coral Reef Bond represents a replicable global model for sustainable marine conservation financing. It sets a new benchmark for other countries aiming to align conservation with measurable outcomes.”
The development and execution of the Coral Reef Bond involves extensive cross-institutional collaboration, including the Ministry of Marine Affairs and Fisheries, National Development Planning Agency (Bappenas), Ministry of Finance, National Research and Innovation Agency (BRIN), World Bank, Global Environment Facility (GEF), BNP Paribas, and the International Union for Conservation of Nature (IUCN).
The side event drew approximately 180 participants from across government agencies, academia, civil society organizations, and the private sector, underscoring the global interest in innovative, scalable marine conservation financing mechanisms.
