AIS Forum Supports Archipelago Countries To Issue Blue Bonds

Deputy for Maritime Resources Coordination of Coordinating Ministry for Maritime Affairs Marves Jodi Mahardi. (Photo: Doc. ANTARA)

JAKARTA - The Archipelagic and Island States (AIS) Forum is ready to support island and archipelagic countries in issuing sovereign blue bonds, which is a form of commitment to advancing the blue economy sector.

"We realize that cross-stakeholder cooperation is urgently needed to facilitate the global transition towards a more sustainable maritime economy," said Deputy for Maritime Sovereignty and Energy Coordination, Coordinating Ministry for Maritime Affairs and Investment Jodi Mahardi, quoted from ANTARA, Friday, October 6.

This form of support is demonstrated through the commitment of the AIS Forum to collaborate in preparing the Blue Financing Strategic Framework.

With this guidance, continued Jodi, economic actors in all sectors will more easily see opportunities and take part by investing sustainably in the blue economy.

The document is a guide for investment in blue economy activities by considering social, economic, and environmental impacts.

The Blue Financing Strategic Framework document was developed in collaboration with the AIS Forum Secretariat, the Indonesian Coordinating Ministry for Maritime Affairs and Investment, and the UNDP Indonesia Innovative Financing Lab.

Published in 2022, the document was prepared to encourage investment in marine-based or marine-related sustainable economic activities.

This innovative document targets governments, the financial services sector, philanthropy, and international organizations/donors who have great potential to support the economy in the blue sector.

This document has also become one of the references for the Indonesian Government through the Ministry of Finance to issue government blue bonds. In May 2023, the Indonesian government then issued the first sovereign blue bonds offered to the public with a total value reaching the equivalent of 20.7 billion Yen.

This publication shows Indonesia's commitment to utilizing innovative financing sources to encourage investment and sustainable use of marine ecosystems to increase benefits for society.

This major achievement is of course an important point in highlighting the enormous potential of investment in this sector.

Indonesia identifies blue sectors and projects that meet sustainability requirements based on a framework developed with the AIS Forum Secretariat. The Indonesian government then implemented best practices to ensure that funds obtained from Blue Bonds were directed to initiatives that support blue economy principles.

"Indonesia's success in launching a sovereign blue bond could be a blueprint for other countries to exploit the potential of blue financing as a tool for economic growth, environmental preservation, and long-term prosperity while preserving their unique maritime ecosystem," said Jodi.

Based on the good example set by Indonesia, the AIS Forum Secretariat believes the Blue Financing Strategic Framework could be the right approach for other island and archipelagic countries to issue similar sovereign blue bonds.

This strategic approach will not only increase transparency but also ensure investments are in line with sustainable development goals, especially for island and archipelagic countries that are highly dependent on their marine resources.

In the future, the AIS Forum Secretariat will continue to encourage efforts to introduce the Blue Strategic Financing Framework to island countries and other archipelagos.

This must of course be accompanied by an active role in supporting these countries to be able to issue blue bonds to support financing for their maritime agenda.

The discussion about the Blue Strategic Financing Framework will be a part of the key theme related to the Blue Economy at the AIS Forum Summit which will take place in Bali on October 10 – 11, 2023.