Blue finance for Indonesia boosted by UK announcement of up to £18 million additional Blue Planet Fund investment

By launching a new Country Plan, Indonesia is set to drive investment into the well-being of coastal communities and ecosystem.

The UK government announced on Tuesday 21st, in Jakarta, the launch of a Blue Planet Fund (BPF) Country Plan for Indonesia, welcomed by the Indonesian Government, national and global corporations, non-governmental organisations and Indonesian coastal community representatives.

The BPF Country Plan will support the delivery of the Government of Indonesia’s Ocean and Blue Economy priorities and objectives. As part of the plan, the UK also launched the Climate and Ocean Adaptation and Sustainable Transition (COAST) Programme in Indonesia, announcing up to £18 million of new funding over the next 5 years. The COAST programme aims to improve the adaptive capacities, climate resilience and prosperity of vulnerable coastal communities, whilst at the same time protecting, restoring, and sustainably managing Indonesia’s precious coastal habitats.

Among COAST’s objectives is developing blue finance streams to support the conservation and restoration of Indonesia’s blue carbon ecosystems. Accounting for roughly 17% of the world’s blue carbon reservoir, these ecosystems - including mangroves and seagrasses - promote Indonesia’s sustainable development, climate and nature goals by supporting coastal community livelihoods and food security, enhancing carbon storage, preserving biodiversity, improving water quality and protecting against storm surges. The funding represents a crucial step in de-risking blue carbon projects, catalysing local partnerships to create viable and attractive blue carbon investment opportunities.

Through funding from the UK’s COAST Programme in 2023, the World Economic Forum partnered with the government of Indonesia to establish the first National Blue Carbon Action Partnership (NBCAP), pioneering a national coordinated platform for stakeholders to develop the national roadmap for blue carbon action and finance. This NBCAP has been establishing the foundations that the new funds within the Country Plan in part can further support.

By leading the way, with secure government funding and established governance frameworks, the UK and Indonesia are now creating a solid platform for investment in Indonesian blue carbon.

Emily Kelly, Blue Carbon Lead, World Economic Forum said, “The COAST funding comes at an exciting time for Indonesia’s blue carbon ecosystem conservation and restoration planning, as the stakeholders within the National Blue Carbon Action Partnership create the enabling conditions for investment into these important ecosystems. COAST funding opportunities will serve to further catalyse larger scale investment, delivering effective action for coastal communities, nature, and climate.”

The BPF Country Plan was launched by the UK Minister of the Foreign, Commonwealth and Development Office (FCDO) Catherine West, UK Permanent Secretary at the Department for Environment, Food and Rural Affairs Dame Tamara Margaret Finkelstein, and Indonesian Minister for Marine Affairs and Fisheries Sakti Wahyu Trenggono.

"We are excited to launch the COAST Programme Indonesia, part of the wider Blue Planet Fund, which is a key part of our commitment to protect the marine environment and reduce poverty. With up to £18m in funding for projects in Indonesia over the next 5 years, this initiative will deliver technical support and strategic investments to protect blue carbon ecosystems, enhance ocean resilience and drive sustainable blue economic growth in coastal communities.” says Gareth Clements, COAST Senior Responsible Owner, FCDO, UK.

As a world leader in community-led marine conservation, Indonesia plays a strategic role in mobilising funding to support the development of the blue carbon market within the country.

The Indonesian government also welcomed this announcement. Fajar Nuradi, Director of Food Production and Climate Change in the Coordinating Ministry of Food Affairs, the lead Ministry of the Indonesian NBCAP, noted:

“The new funds available through the COAST Programme will further boost the work we are undertaking in establishing and planning for our national goals for blue carbon ecosystems and ensuring they support coastal communities. By combining all possible frameworks, Indonesia is de-risking nature-positive and blue carbon finance.

Muhammad Yusuf, Director of Coastal and Small Island Utilization at the Ministry of Marine Affairs and Fisheries, which co-chairs the Indonesia NBCAP, added:

“Indonesia is a nation with a deep connection to our marine and coastal environments, and a vibrant array of communities that depend upon them. As a global leader in the sustainable ocean economy, protecting and enhancing our precious blue carbon ecosystems is a key priority. Blue carbon conservation and restoration projects drive climate- and nature-positive economic growth, benefiting key sectors including fisheries, aquaculture, and tourism, and supporting livelihoods in our coastal communities.”


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About the UK's Blue Planet Fund
The UK’s international Blue Planet Fund aims to support developing countries, such as Indonesia, to protect the marine environment and reduce poverty. As part of this, the BPF's Country Plan for Indonesia outlines a comprehensive framework for collaboration between the UK and Indonesia, and a range of UK support through bilateral and multi-donor programmes in Indonesia.

This includes the UK’s new Climate and Ocean Adaptation and Sustainable Transition (COAST) Programme in Indonesia. The COAST programme aims to improve the adaptive capacities, climate resilience and prosperity of coastal communities in Indonesia, whilst at the same time protecting, restoring, and sustainably managing Indonesia’s precious coastal habitats.

The BPF is also supporting two fellowship programs in marine science. The first is a fellowship program on Ocean Accounting, funded by the UK Government through the Global Ocean Accounts Partnership. The second, is a fellowship program on Strengthening Indonesia’s Capacity to Reduce Illegal Shark Fisheries and Trade, supported by Cefas.

The Blue Carbon Action Partnership (BCAP) is a global initiative led by the World Economic Forum's Ocean Action Agenda. It brings together stakeholders from across sectors to address the challenges that impact the conservation and restoration of blue carbon ecosystems. BCAP coordinates global efforts to support developments in science, policy and funding for scaling blue carbon ecosystem restoration and conservation. Visit the website to find out how the initiative brings together public and private stakeholders, driving crucial conversations to deliver meaningful change: www.bluecarbonactionpartnership.org

Image: Rt Hon Catherine West speaking at the launch which took place on 21st January.