The United States and Indonesia have signed a debt-for-nature swap that will see the US redirecting $35 million of Indonesia’s debt into an investment in coral reef conservation.
The fourth agreement under the Tropical Forest and Coral Reef Conservation Act (TFCCA), and the first focused primarily on coral ecosystems, marks a pivotal step in efforts to safeguard the biodiversity of one of the world’s most vibrant marine environments, says the US Embassy and Consulates in Indonesia.
“This agreement is a testament to the strong bilateral relationship between the United States and Indonesia and our continued deepening engagement under the U.S.-Indonesia Comprehensive Strategic Partnership,” said Chargé d’Affaires a.i. (CDA) Michael F. Kleine. “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.”
“Indonesia is strongly committed to safeguarding coral reefs and healthy marine ecosystems as a part of national development policy. This agreement helps solidify the idea that a healthy ocean is a global interest and shared responsibility,” said Victor Gustaaf Manoppo, Director General of Marine Spatial and Ocean Management, Ministry of Marine Affairs and Fisheries, Indonesia. “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.”
An Oversight Committee comprising representatives from the Indonesian and U.S. governments, NGO swap partners, and other civil society organizations will manage the funds generated from the debt-for-nature swap. The focus area of the activities will be at Lesser-Sunda, Banda, and Bird’s Head Seascapes.
Priorities include conserving globally threatened or endemic species that depend on coral reef ecosystems for critical habitat; protecting threatened or vulnerable coral reef ecosystems of high conservation value; promoting sustainable use of coral reef biodiversity; reducing the threat to, or increasing the connectivity between, coral reef areas; creating new protected areas as appropriate; and directly contributing to the improved management of existing public, private, municipal, or communal protected areas and their conservation targets.
“When Conservation International facilitated the first debt-for-nature swap in 1987, we never imagined it would eventually unlock billions for global conservation,” said Dr. M. Sanjayan, CEO of Conservation International. “Still, debt-for-nature swaps continue to evolve — today’s announcement marks the first time the TFCCA will be used to focus on coral reef protection. We commend the governments of Indonesia, the United States, and our partners for their vision and commitment to marine conservation.”
YKAN Executive Director Herlina Hartanto emphasized that the TFCCA deal will significantly bolster the current protection and conservation of coral reef ecosystems in the Bird Head’s Seascape and the Lesser Sunda-Banda Sea. “We strongly believe this innovative TFCCA deal will enhance marine conservation efforts and inspire others to join this important initiative for the benefit of nature and people in Indonesia.”
The debt swap deal in numbers
The agreement is the fourth “debt-for-nature” swap the two countries have struck since 2009 and is expected to fund at least 15 years of conservation work in two key areas of the ‘Coral Triangle’.
The Bird’s Head Seascape and Lesser Sunda-Banda Seascape it targets both span hundreds of thousands of hectares, a habitat for over three-quarters of all coral species and more than 3,000 types of fish, turtles, sharks, whales, and dolphins, according to the news organization Reuters.
Indonesia has roughly 5.1 million hectares of coral reefs, 18% of the world’s total according to the country’s tourism ministry, but this year’s bleaching problems have already had a devastating impact.
Indonesia benefitted from earlier debt swaps with the U.S. in 2009, 2011, and 2014 that collectively over time generated nearly $70 million.
It will see $26 million of Jakarta’s debt written off under the U.S. Tropical Forest and Coral Reef Conservation Act. Conservation International will contribute $3 million and another $1.5 million from The Nature Conservancy, another group heavily involved in debt swaps.
