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Indonesia and the U.S. Finalize $35 Million Debt-for-Nature Swap for Coral Reef Conservation

Indonesia and the U.S. Finalize $35 Million Debt-for-Nature Swap for Coral Reef Conservation
Credit: Pixabay

The Indonesian government recently announced an agreement to transfer a US$35 million debt to the United States, which will be used for coral reef conservation in Indonesia. This process, finalized on January 15, is the realization of an agreement signed in July 2024.

This agreement marks a historic moment as it is the first time the Forest and Coral Reef Conservation Act has been used to fund coral reef conservation efforts.

Protecting the Pacific Coral Triangle

In a written statement, Kurniawan stated that the funds from the debt transfer will be focused on preserving and protecting coral reef ecosystems in the Bird’s Head Seascape and the Banda Sunda Sea.

These locations were chosen because they are part of the Pacific Coral Triangle, known for its high biodiversity. According to research, this region serves as a habitat for nearly 75 percent of the world’s coral reef species.

The "debt-for-nature" program will be used to support coral reef restoration in these two key areas, which are home to more than 3,000 species of fish, turtles, sharks, whales, and dolphins.

Preserving Oceans, Empowering Communities

The US$35 million debt swap was facilitated through a collaboration between two international conservation organizations, The Nature Conservancy (TNC) and Conservation International (CI), along with Indonesian local partners, Yayasan Konservasi Alam Nusantara (YKAN) and Yayasan Konservasi Cakrawala Indonesia.

The funds will be allocated for the conservation of coral reefs, coastal marine ecosystems such as seagrass beds, mangroves, and sandy seabeds, as well as the protection of endangered marine species.

Additionally, the funds will support marine conservation areas, habitat connectivity, and the potential development of future conservation sites.

Over the next nine years, the funds will be managed to provide grants to civil society organizations and to finance coral reef restoration projects. These projects play a crucial role in the survival of Indigenous and local communities who depend on these ecosystems for food and livelihoods.

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