The Indonesian government recently announced an agreement to transfer $35 million in debt to the United States, which can be used to guard coral reefs in Indonesia. This process, accomplished on January 15, is the implementation of the agreement signed in July 2024.
This agreement marks a historic moment because it is the primary time the Forest and Coral Reef Conservation Act has been used to finance coral reef conservation efforts.
In a written statement, Kurniawan said funds from the debt transfer can be used to preserve and protect coral reef ecosystems within the Bird’s Head seascape and the Banda Sunda Sea.
These locations were chosen because they’re a part of the Pacific Coral Triangle, known for its high biodiversity. According to research, this region is home to almost 75 percent of the world’s coral reef species.
The Debt for Nature program can be used to support the restoration of coral reefs in these two key areas, that are home to over 3,000 species of fish, turtles, sharks, whales and dolphins.
The $35 million debt swap was facilitated by the collaboration of two international conservation organizations, The Nature Conservancy (TNC) and Conservation International (CI), together with Indonesian local partners, the Nusantara Nature Conservation Foundation (YKAN) and the Indonesian Nature Conservation Foundation Chakravala.
The funds will go towards protecting coral reefs, coastal marine ecosystems equivalent to seagrass meadows, mangroves and sandy seabeds, in addition to protecting endangered marine species.
In addition, the funds will support marine conservation areas, habitat connectivity and the potential development of future conservation areas.
Over the following nine years, the funds can be managed to supply grants to civil society organizations and finance coral reef restoration projects. These projects play a key role within the survival of indigenous and native communities whose food and livelihoods rely upon these ecosystems.
