The Government Is Increasingly Enthusiastic About Monetizing The Blue Economy, The Latest Signal Sent By Coordinating Minister Airlangga

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government's intention to immediately monetize blue economy activities seems to be increasingly showing a bright spot.

Most recently, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that his party is now continuing to review the blue economy financing mechanism so that it can be appropriate, effective, and as expected.

"This of course needs to be accompanied by efforts to encourage investment in renewable energy which is being developed in various regions in Indonesia, including hydropower and solar," he said in an official statement quoted Friday, March 11.

According to Airlangga, budget tagging for the climate budget in the APBN has been carried out and the application of a carbon tax in dealing with climate change has been regulated in Presidential Regulation 98 of 2021 regarding the implementation of carbon economic value (carbon pricing).

"Through cooperation and active participation from all parties, we can accelerate economic recovery and invest in the blue economy in order to encourage sustainable economic development," he said.

Although the monetization of the blue economy sector is still in the maturation of the concept, Indonesia has actually released a green economy-themed bond that can be used as a reference.

VOI noted that the blue economy bond concept was first expressed by the Minister of Finance (Menkeu) Sri Mulyani. At that time, the Minister of Finance emphasized that he received direct direction from President Joko Widodo to be able to enter into more creative instruments, such as optimizing the wealth of natural resources.

"Mr. President has even asked us to look at the potential aspects of the marine sector so that the blue economy becomes very important," said the Minister of Finance some time ago.

For information, green bonds are one of the financing instruments (debt) that are included in the SGD scheme. Meanwhile, blue bonds are a relatively new form of sustainability bond, namely debt instruments issued to support investment in a healthy ocean and blue economy.

Based on data released by the Ministry of Finance, it is stated that Indonesia is one of the leading countries in issuing green bonds, especially those combined with the sharia system, namely green sukuk.

Until the end of last year, the global value of green sukuk managed to reap funding of 3.5 billion US dollars or equivalent to Rp. 49.7 trillion (exchange rate of Rp. 14,202). Then, retail green sukuk with a domestic market share of Rp6.88 trillion.