Blue Economy Development Framework for

REPUBLIK INDONESIA

Indonesian Economic Transformation

Amalia Adininggar Widyasanti
Deputy Minister for Economic Affairs
Ministry of National Development Planning/Development Planning Agency, Indonesia
 REDESIGNING ECONOMIC TRANSFORMATION OF INDONESIA FOR
INCLUSIVE AND SUSTAINABLE DEVELOPMENT
“Build Forward Better”

Strategy #1 Strategy #3 Strategy #5

Competitive Human Resources: Green Economy: Domestic Economic Integration:
• Health Care System • The Low Carbon and (economic powerhouse)
• Education (Education System and Circular Economy • Connectivity infrastructure:
Superhub, Maritime Hub, Aerial Hub
•
Character Education)
Research and Innovation
• Blue Economy • Domestic Value Chain
• Energy Transition

Strategy #2 Strategy #4 Strategy #6

Economic Productivity: Digital Transformation: National Capital City:
• Industrialization • Digital Infrastructure • New source of growth
• Productivity of MSMEs • Digital Utilization • Balancing Regional
• Modernization of Agriculture • Strengthening of Enabler Economic Growth

The Six Strategies are “The Game Changer” Towards Advance Indonesia Before 2045
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 HOW TO BUILD RECOVERY PROGRAM AS TO
“BUILD FORWARD BETTER: GREENER, BLUER, AND MORE INCLUSIVE”

The COVID-19 recovery thus offers an unprecedented opportunity to “reset” and structurally transform economic and
social systems, so that they become low-emission, climate-resilient, resource-efficient, and more socially inclusive.

Achieving the Sustainable Development Goals (SDGs) by promoting:

• sustainable consumption and production,
Transitioning to a Boost GDP • sustainable industrialization,
growth • environmental and biodiversity preservation, and
Blue Economy • social inclusivity through poverty reduction and job creation.

However, there are still some challenges in Blue Economy Development:

Impact of Covid-19
Limited capability of
pandemic on key
Access to developing countries in
ocean economy Unsustainable Climate Energy
financing and human resources,
sectors, such as ocean change transition
investment technology, institution,
tourism, fisheries,
and planning
and shipping

Kedeputian Bidang Ekonomi 3

 THE COURSE OF BLUE ECONOMY DEVELOPMENT IN INDONESIA

Within the ZEE, Indonesians have the right to manage and utilize all of its natural resources
for the purposes of exploration and exploitation, conservation and development of natural
resources (Djuanda Declaration on IATK-ITB, 2020)

OCEAN POTENTIAL
Indonesia has modality as the world’s second largest fishery sector. It accounts
for about 20% or USD 27 billion to GDP, 50% of exports in 2017, and provides around
5.23 million fisherman and fish farmers in 2019, and 1.25 million seafarers in 2021

NATIONAL MEDIUM TERM DEVELOPMENT PLAN 2020-2024

Marine and fisheries sectors support the achievement of the national development
agenda, particularly for strengthening economic resilience for quality and equitable
growth agenda, improving the environment and increasing disaster resilience agenda,
strengthening the stability of political, legal, and security affairs, and transforming
public services agenda.

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 THE URGENCY OF BLUE ECONOMY DEVELOPMENT IN INDONESIA:
THE POTENTIAL HAS NOT BEEN EXPLORED OPTIMALLY
Sustainable and Inclusive Economic Development Challenges and Opportunities
• Lack of environmental and social
sustainability consideration regarding
Blue Economy the traditional sea-based sector
Blue Economy is indispensable for Indonesia’s economic • Coastal communities' knowledge and
transformation capacity in managing marine resources
must be improved so that they can
• Recovery from • Achieving • Optimizing • Blue economy is participate in addressing challenges such
the pandemic sustainable Indonesia’s marine an integral part for as marine resource degradation and
and acceleration development: Goal resources local economic pollution, overfishing, and climate
to achieve 14 Life Below potentials (Ref: development change.
Indonesia 2045 Water Djuanda
Declaration, RPJPN • Uplifting existing/ • Social: A sustainable ocean economy
Vision: a high • Climate change
2005-2025, RPJMN traditional sectors holds an immense promise for achieving
and sustainable mitigation and
2020-2024) and promoting fundamental goals such as eradicating
productivity adaptation emerging sectors hunger and extreme poverty, creating
more jobs, and combating climate
change.
Indonesia’s Blue Economy Modalities
• Education: can produce generations who
really understand how to maximize the
17,508 65% 290,000 km2 3 million km2 80.791 km economic and social benefits of
maritime potential while protecting the
Islands (6,4 million km2) Coastline
Territorial Exclusive Economic Zone environment in the long term.
(rely on and of total
Utilizable area for exploration,
are Indonesia’s area sea area
conservation & sustainable
connected by covered by sea development
sea) Source: Djuanda Decalaration; Indonesia’s Blue Economy Framework, 2021
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 BLUE ECONOMY DEVELOPMENT INDEX (BEDI)

Blue Economy Development Index (BEDI):

a development tool aimed at accelerating the global shift towards a sustainable and equitable
blue economy by empowering archipelagic and island states with reliable information
pertaining to the use of coastal and marine resources.
Data

Indonesia: Rank 35 out of 47

Kedeputian Bidang Ekonomi 6

 BLUE ECONOMY FOR LOCAL ECONOMIC DEVELOPMENT

Research Gap :
Blue economy has a
Fishery sector in the Eastern regions of Indonesia
responsibility to communities
contributes around 7,95% of GDP in the last six years,
who live and engage in socio- but the contribution has not yet created welfare for
economic activities connected the people, as they are often associated with a high
to coastal and ocean resources poverty rate, notably in Maluku and Papua
Fisheries (BPS, 2021)

GOVERNMENT ROLE

Improve the knowledge Building a consensus among the Conducting a comprehensive

and capacity of coastal stakeholders on the economic, planning, policy making and
community in marine social and environmental goals actions, in which the
resource management based on the use of ocean resource achievement can be measured

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 BLUE ECONOMY AND SDGs
ACHIEVING SUSTAINABLE DEVELOPMENT: GOAL 14 LIFE BELOW WATER

SDG 14 recognizes that the (RPJMN) 2020-2024 includes SDG SDG 14 will lay the groundwork for the
oceans of the planet power the 14, aims to prevent and blue economy, one of the possible
systems that keep the earth significantly reduce marine strategies for Indonesia's economic
habitable for humans. pollution of all kinds by 2025. change following COVID-19 pandemic.

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 THE SCOPE OF BLUE ECONOMY AS A NEW ECONOMIC PARADIGM

Economic Growth
Conventional Economy New Economic Paradigm: Green Economy
Terrestrial Economy Blue Economy:
Marine-based Economy

▪ Balancing growth with Creating value-added and

environmental benefits improving productivity of marine-
▪ Considering carrying capacity based economy to achieve inclusive
▪ Low Carbon emission & sustainable economic growth

Implementation through: New economic opportunity for Indonesia

▪ Circular Economy
▪ Renewable energy
▪ Green industry
▪ Green investment
▪ Waste management
▪ etc
Cross sectoral issues:
▪ Marine-tourism ▪ Sea logistics
▪ Fishery industry ▪ Renewable energy
▪ Shipping industry ▪ Research and education
▪ Bioeconomy and ▪ Ocean waste
biotechnology management, etc.

Economic Transformation Based on SDGs

Kedeputian Bidang Ekonomi 9
 CHALLENGES AND OPPORTUNITIES
CHALLENGES
Three sectors are facing the economic
costs of greater pollution, overfishing,
and a changing climate.
For sectors:
• The fishing sector
• The tourism sector
• Shipping industry
Poor infrastructures and limited
markets are also identified as the
major problems to develop value-added
of fishery products.
Other challenges are related to
Water pollution, including the one brought
through rivers (terrestrial-based activities),
ocean waste, endangerment of ocean fauna,
and environmental degradation.
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OPPORTUNITIES
Ocean economic activities accelerate globally
Create opportunity to boost sustainable development if
new and existing ocean economy activities will be
pursued sustainably.
The ocean is becoming the center stage for a
new range of economic activities
From offshore wind energy, growing aquaculture, to
marine biotechnologies
Existing industries that are transitioning to more
environmentally sustainable practices may also
get benefits from blue economy development.
These sectors may receive new and innovative
investment in the form of better technologies and
business models for promoting or restoring ocean health
10
 INDONESIA COMMITMENTS IN INTERNATIONAL COOPERATION
Jakarta, 8 – 10 May 2017
Jakarta Declaration on Blue Economy - Declaration of
the Indian Ocean Rim Association on the Blue
Economy in the Indian Ocean Region
• Promote communication and maritime connectivity in the
Indian Ocean region
• Collaborate and cooperate with relevant stakeholders to
advance the blue economy in the Indian Ocean region.
Stockholm, 25 October 2021
Joint Statement on Cooperation in the Field of Blue
Economy between Sweden and Indonesia
• Mainly focused on cooperation in the field of the blue
economy.
• This partnership supports and provides solutions to
grow the Indonesia blue economy and create the Road
Map for the Blue Economy in Indonesia in 2021-2022.
Kedeputian Bidang Ekonomi
Brunei Darussalam, 26 October 2021
ASEAN Leaders Declaration on the Blue Economy
• ASEAN's commitment to taking the lead on regional
cooperation to the blue economy and exploring
collaboration on the blue economy subsectors
• Recognizes the need for ASEAN collective effort and
holistic response to mitigate the impact of COVID-19
Rome, 30 October 2021
Australia-Indonesia Joint Statement on Cooperation
on the Green Economy and Energy Transition
• Promotes sustainable development in cooperation on
marine sustainability and the blue economy
• Encourages the development of a blue economy in
some ways, such as based on spatial planning and
protection of the marine and coastal environment.
 OCEAN-ECONOMY VALUE ADDED IN ASEAN COUNTRIES IN 2015

Indonesia produced 67 percent of the total value

added from the six sectors across ASEAN members

Value added generated by Indonesia :

84 percent from marine

fish processing

73 percent of
marine fishing
54 percent of marine
aquaculture

Indonesia also generated the largest value

added from maritime freight and maritime
passenger transport among ASEAN countries
Source: OECD, 2021

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 SHARE OF VALUE-ADDED FOR SIX OCEAN-BASED SECTORS IN 2015
The composition of Indonesia’s ocean economy
differs from that other ASEAN and East Asia Pacific
countries
In Indonesia, marine fishing, aquaculture
and fish processing account for 83
percent of the value added generated from
the six ocean-based sectors measured.

Compared to the East Asian region,

Indonesia’s shipbuilding sector contributed
only USD 0.6 billion in value added in 2015

Indonesia’s shipbuilding sector is constrained by

Poor access to A tax regime that Inadequate supply

the necessary incentivizes the of appropriately
levels of finance importation of whole ships skilled labor

Worldwide, shipbuilding employs the second largest

ocean sector in terms of employment.
Source: OECD, 2021
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 UPLIFTING MARINE-BASED INDUSTRY FOR BLUE ECONOMY
MARINE BASED MARINE BASED SHIPBUILDING
FOOD -INDUSTRY CHEMICAL-INDUSTRY INDUSTRY
Chemicals, Salt Industry
Economic Impact: Economic Impact:
• 7,7 mil tons fisheries production in 2020 (42 percent of it Economic Impact: • Approximately 1.9 million people worked in
from aquaculture) and employed around 6,2 million • Potentially produce 5,754 tons of salt from 159,840 tons of shipbuilding and repair in 2010.
fisherman/fish farmers wastewater per day. • In the global shipbuilding and repair industry, these
• USD 5,2 bil value of fisheries export for tuna-skipjack, • Shipbuilding and repair estimated contribute around USD countries accounted for over 60 percent of all jobs.
shrimp, and seaweed 103 billion to the global economy and create around 2.3
• Fisheries processing industry amount 61.144 units, million jobs.
Challenges:
majority MSMEs
• 2010 was in the midst of an extremely high period of
Challenges: Challenges:
• Unsustainability practices • Highly depend on import shipbuilding, which resulted in overcapacity.
• Lack technical skills, issues on quality and assurance of • Underutilization capacity
products and raw materials • Early stages R&D of ship technology Trend and Drivers for Economic Transformation:
• Raw materials shortag • Collaborative operation using complementary
Opportunities Opportunities: capacity among
• Indonesia’s seaweed products have export • Growing demand of marine non-living products • Different shipbuilding enterprises
competitiveness • Large potential oil and gas reserves in Sulawesi, Moluccas, • Access to financial assistance from the bank, as well
• Aquaculture as potential solution to meet growing Papua, Kalimantan, and Sumatra. as policy assistance from the government
demand • Improving knowledge pool and technological
Trend and Drivers for Economic Transformation: Trend and Drivers for Economic Transformation: capability
• Technology – cold chain logistic system • Business integration and localization.
• Standardized quality assurance and food safety system • Digital exploration of energy sources and underwater
• Improved infrastructure and facilities such as ports and mining.
electricity for industry. • Application of digital ecosystems and automation to the
withdrawal of energy sources and operating processes,
development of downstream specialties products.
• The desalination and the usage of a reverse osmosis (ro)
system in electric steam power plant (pltu) converts
seawater to freshwater. Sources: OECD, WWF, MMAF, RPJMN, PSN

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 BLUE ECONOMY DEVELOPMENT FRAMEWORK FOR INDONESIA’S ECONOMIC
TRANSFORMATION ON THE ROLE OF BLUE ECONOMY FOR INDONESIA

Launched by Ministry of National Development Planning in the

Sweden-Indonesia Sustainable Partnership (SISP) Week on
November 25, 2021

“The Blue Economy is a powerful tool for Indonesian

economic development, and it will be a new engine of
economic recovery and transformation.”

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 WAY FORWARD: BLUE ECONOMY ROADMAP FOR
SUSTAINABLE DEVELOPMENT

Blue Economy:
Marine-based economy

Creating added value and increasing marine- Blue Economy

based economic productivity to achieve inclusive Road Map for
& sustainable economic growth. Indonesia

New economic opportunity for Indonesia ASEAN Summit 2023

Support SDGs Goals:

Partner in developing Blue Economy Roadmap

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 OTHER MILESTONES:
SWEDEN-INDONESIA BLUE ECONOMY COOPERATION MILESTONES
The framework of Indonesian blue economy will also become the basis for further discussion and
collaboration in this following events.
1. Blue Economy in G20 Summit: Development WG & Sweden-Indonesia Joint Event on Summit
2. Blue Economy in ASEAN Summit 2023
3. Blue Economy in European Meetings 2023

Sustainability Forum Blue Economy in G20: Indonesia puts forward

Swedia – Indonesia. Priority 1 of Development Blue Economy in
Special Session: Working Group ASEAN Meetings 2023
Blue Economy

End of
(Oct 2021) November (2021 – 2022) (2022) (Oct 2022) (2023) (2023)
(2021)

LOI on Blue Preeparing Master Plan Blue Economy in G20: Sweden puts forward
Economy on Blue Economy of Joint Side Event Blue Economy in
Cooperation/ Indonesia Indonesia – Swedia European Meetings
Joint Statement and the Launch of 2023
Blue Economy
Master Plan

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 STAKEHOLDERS INVOLVED

Partners
• Conceived and designed the Blue Economy framework
• Participating in the side event of Development Working Group 1 (G20)
Framework • Partner for the development of G20 DWG Issue Note, including in the area of
low carbon development – green and blue economy
• Partner for the implementation of the Blue Economy Roadmap

● Economic projection in
the Blue Economy.
• Best practices of Blue Economy Development
Roadmap
● Investment analysis
• Marine spatial planning overview.
• Source to sea (granting rights to communities
to take advantage of marine resources).
• Tools for cumulative impact assessment in
analyzing marine human activities.
• Inclusivity of the Blue Economy sector in
Sweden.
Provide support according to expertise, tool and experience:
UNDP (financing, startup and climate resilience), ILO (maritime
and fisheries), FAO (food and livelihood), UNEP28(tools
UN-RC/03/2022/026 and
March 2022
modeling) and UNIDO (fisheries and energy).
Dear Ibu Winny,

I am writing to respond to your request for UN support to the development of the Master
Plan of Blue Economy during our bilateral meeting on 18 February 2022.
Kedeputian Bidang Ekonomi
 STAKEHOLDERS INVOLVED

Further Readings

The Book on: Blue Economy Development Framework for

Indonesian Economic Transformation is accessible online:

Click link below:

https://bit.ly/BappenasBlueEconomy

Or

Scan this QR code:

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REPUBLIK INDONESIA

THANK YOU
 EMERGING SECTOR: RENEWABLE ENERGY, BIOECONOMY & BIOTECHNOLOGY

Renewable Energy Bioeconomy

Wind Energy Ocean Energy Algae Biomass Biotechnology

Kinetic, thermal, salinity, biomass • Microalgae Carrageenan Chitosan

The only commercial
deployment of a marine • Macroalgae (seaweeds)
▪ Tides ▪ Temperature
renewable energy with wide- • Cyanobacteria (Spirulina) • Challenge: (1) Research and development
▪ Waves gradient
scale adoption ▪ Tidal (marine) ▪ Osmotic gradient generally takes 5–10 years and is relatively
• Challenge: Low capacity is most expensive; (2) Innovation ecosystem has not been
current ▪ Micro-macro algae likely due to a lack of access to realized; (3) Infrastructure and facilities for
• Economic Size: Marine renewable energy in Indonesia is up to 60,000 MW (national seaweed or a lack of market research and development; (4) Budget incentives
energy council, 2014). Potential for marine energy in Indonesia reaches 49 GW. Tidal access and disincentives; and (5) Lack relevant policy
energy has been estimated at 18 GW (MEMR, 2016) • Trend and Drivers for Economic • Trend and Drivers for Economic Transformation:
• Challenge: lack of investment Transformation: Innovation (no. (1) Enhanced relationship with government to help
• Trend and Drivers for Economic Transformation: (1) Supporting policy to facilitate of patents – Governance); Farm shape policy in a rapidly evolving industry; (2)
rapidly evolving industry; (2) New markets for low- to no-emission energy production, management (Environmental); Granting of rights for sampling in new areas based
driven by increasing greenhouse gas emission regulations and consumer preference; (3) Marine genetic resources (e.g. on good environmental track record
Leveraging investment from multipurpose infrastructure application in pharmaceuticals –
Environmental)
Ocean Current Energy Potential • The key drivers for the market are new applications of marine-derived enzymes in
Maximum Practical Resources (Kw) Location the cosmetics industry and use of marine algae and micro algae in biofuel
production.
0- 200.000 Riau, Sugi (Riau), Lampa (Natuna), Lembeh, • Marine biotechnology used for future pharmaceutical drug development and
Lirung (Talaud), Mansuar (Raja Ampat), Molo, cosmetic products for health and well-being, as well as for food production using
Larantuka, Boleng algae, biofuel, and so on (OECD, 2017).
200.000 - 400.000 Selat Sunda, selat Lombok, selat Pantar • Marine and fishery biota have the potential to be developed as products of the
biotechnology industry, which has a higher economic value compared to the raw
> 400.000 Alas materials.
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 EMERGING SECTOR - RESEARCH & EDUCATION, ENVIRONMENT & RESOURCES
MANAGEMENT
Research & Education Environment & Resources Management

Economic Impacts Economic Impacts

The integrated ocean management The need of proper management of natural assets
Research and education are key enablers for Marine education is critical to develop the
(environment and resources) provide stable is important to obtain the best long-term returns.
the twin green and digital transitions. knowledge, skills, and attitudes necessary in
economic returns, which will resulting in Ecosystem degradation reduces the value of ocean
Efforts made through research and preserving the environment in the future
higher employment rate, higher contribution ecosystem services for fisheries, tourism and
education aim to make the blue economy (particularly coastal ecosystems) and to
of GDP, higher export revenues from commercial shipping, as well as hinders another
competitive and sustainable in the future. allocate the economic impact to the society.
fisheries and higher domination of global crucial economic function that is community
supply protection.
Challenges
Challenges
Lacking of technological, Low public awareness of the
Communication Catching above biological Quality and extent degradation of Plastic debris
facilities, and innovative maritime education that affects the
and cooperation thresholds, which coastal ecosystems (poor reefs and problem, driven by
capabilities that limit understanding in preserving the between education undermines long-term mangrove condition), driven by climate Indonesia’s extensive
the growth of ocean environment in the future, particularly and industry
research. profits by reducing fish (increase of coral bleaching), coastline, large
coastal ecosystems.
stocks and yields, reducing destructive fishing practices, agricultural population, and high
benefits — food, jobs, or and urban runoff, and marine plastic proportion of
Opportunities
income pollution mismanaged waste.
Generates a generation that fully understands how to maximize the economic and social benefits
Opportunities
of the maritime potential while preserving the environment in the long term.
Generates economic and social benefits while ensuring oceans long term environmental
Drivers for Economy Transformation sustainability (World Bank, 2017)

• The government issued Law No. 11/2019 on the National System of Science and Technology (the
Sisnas Iptek Law). This 2019 Law amended Law No. 18/2002 to address deficiencies that prevented
the 2002 law from being an optimum framework for contributions from science and technology
towards national development. By issuing Law No. 11/2019, the Government of Indonesia was
signaling more attention to, and commitment for, the growth of the research and innovation during
the next phase of Indonesia’s development.
• Research and Innovation is a central driver not only for developing a sustainable blue economy but
also for green recovery from the COVID-19 crisis. It is an enabler for the twin green and digital
transitions and is ideally placed to set the direction, address synergies and trade-offs.
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Drivers for Economy Transformation
• Central and provincial governments have been working to enhance protection of coastal and
marine ecosystems (introduction of spatial plans, a system for resolving land use conflicts and
balancing environmental and economic considerations by delineating zones for specific uses)
• Government has launched the National Action Plan on Marine Debris in June 2017, intending to
reduce marine debris by 70 percent by 2025. Other actions include recent Extended Producer
Responsibility (EPR) legislation on consumer goods manufacturers, which obliges firms to reduce
their total waste by 30 percent by 2029. Taxes and bans on single-use plastics are being enacted
by provincial and city governments to discourage plastics consumption
 INDONESIA MARITIME DEVELOPMENT GOALS AND STRATEGIES

Towards a Global Maritime Axis, Indonesia has developed

relevant maritime development goals and strategies in the 2045 Vision

Goals 1: Maritime Economic Development Goals 2: Strengthening Maritime Power

Share of Indonesia Maritime Sector in GDP (%) The realization of a solid and reliable maritime defence and
12,5
security capability to face regional and global challenges
10,5

8,4 Goals 3: Maritime Empowerment

7,95
7,36 7,74 7,14 6,8
6,4 6,04 Achieve the quality of maritime human resources that are
superior, competent, and can master maritime technology
innovation
2010 2011 2012 2013 2014 2015 2016 2025 2035 2045

In 2045, the share of the maritime sector in the GDP as well as the development of a strong maritime culture as
of Indonesia expects to improve about 12.5% the basis for the development of maritime civilization

2. National shipping 100 percent

Other Maritime Development 1. Reduced logistics costs to 8
comes from within the country
Indicator Goals in 2045 percent of GDP
(cabotage principle)
Source: Indonesia’s Vision 2045 Documents (Bappenas)
Kedeputian Bidang Ekonomi
 PROBLEM TO CREATE HEALTHY OCEAN

Source : United Nation (2021)

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Blue Financing
 Timeline Development Working Group and Side Event G20
DWG 1 Meeting DWG 2 Meeting DWG 3 Meeting
and Ministerial Meeting and
and and G20 Summit
Side Event (SE) 3 Additional Session G20 Bali Update
Side Event (SE) 1 Side Event (SE) 2

Hybrid Hybrid Offline Offline Offline

23-25 February 2022 23-25 May 2022 9-11 August 2022 7-9 September 2022 15-16 November 2022
Jakarta Yogyakarta Bali Belitung Bali

23 May 2022 9 August 2022 Before 7-9 September 2022

Side Event DWG Side Event DWG 3, Topic: Side Event G20
Renewing Development
2, Topic: MSME
Multilateralism Ministerial Meeting, Topic:
and Blended For Sustainable SDGs and other topics from
Finance Development previous DWG

Upcoming event

Kedeputian Bidang Ekonomi

 REFERENCE #1: BLUE FINANCING STRATEGIC DOCUMENT
Documents that governments, financial institutions, philanthropy and development partners can use to:
• Provides a basis for determining eligibility criteria in determining blue economy projects
• Identify relevant blue funding instruments for public and private investment
• Identify potential blue economy sectors for funding
• Identifying potential funding schemes for the blue economy sector that has the potential to be developed in
Indonesia
BLUE FINANCING
STRATEGIC D OCUM ENT Blue economy definition based on Potential blue economic sectors to fund
Article 14, Law 31/2014: :
Blue economy is is an approach to • Sustainable fisheries
improve sustainable marine • Marine and coastal protection, and restoration of
management and conservation of marine biodiversity and ecosystems
and coastal resources and their • Renewable marine energy
ecosystems in order to realize economic • Disaster management and risk reduction
growth with principles including
community involvement, resource • Waste management
efficiency, minimizing waste, and • Marine technology (excluding biotechnology)
multiple revenue. • Marine biotechnology
• Ecotourism
Supported by:

1 Alternative Bonds and sukuk State-owned Blended financing Crowdfunding

financial company
scheme BLU Impact investment Blue Investment
Banks
Dana Perwalian Insurance Social and Development Impact Bonds
Kedeputian Bidang Ekonomi 27
s the GEF and thetoWorld
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environmental and financial
Asian Development
for ocean development Oceans Financing
in many forms of Initiative
collaboration,2019e.g. technology5transfer,
billion market 5 years
nhance the contribution
Asian
Bank Development ofOceans
(ADB) marine biodiversity
Financing Initiative to developing
2019
accessibility, or even global cooperation with their original countries.
Bank (ADB)
countries
5 billion and SIDSs.
5 years environmental,
sustainability. economic
Consequently, and social sustainability.
the regulatory-driven Blue Bond mechanism creates a
he policyThe
recommendations made at the APEC Ocean Conference in 2019developing
also advise
Nature
SDG14.A
The Blue
Nature specifies Blue
e oceanConservancy
energy industry
(TNC)
Bonds
theBonds
to
for for
importance
create
Conservation
of increasing
innovative
2019 1.6knowledge,
2019 scientific
financing
billion1.6 billion
mechanisms
transferring marine technology to improve ocean health enhance to
5 years 5 years
•platform where
Private all stakeholders
investment in blueare well needs
bonds motivated andaccompanied
to be committed to many
by forms
research
Conservancy
PROPOSING capacity,
(TNC) and
Conservation
REGULATORY-DRIVEN and to of incentives.
BLUE FINANCE
nvironmentalenhance MECHANISM (APEC
conservation
the FOR
contribution
BLUE ECONOMY DEVELOPMENT
of 2019). BlueBlue
marine biodiversity Bond Bond
to developing countries and SIDSs. incentives to promote greater private contributions.
The policy recommendations made
Amount
Amount at the APEC Ocean Conference in 2019 also advise
Involved Involved
Issuer
. PrivateIssuer
Investors and the
the ocean energy Year
Year General
industry to
(USD) create Coupon
(USD)PublicCoupon
innovative Redemption
financing mechanisms
Redemption Organizations
to enhance
Organizations Figure 1: The Conceptual
ProposedFramework of the
Blue Economy Proposed
Funding Blue Finance Mechanism
Mechanism
environmental
Seychelles conservation
2018 15(APEC
million 2019). 6.5% 10 years TNC, World Bank,
Seychelles
Nagisa Yoshioka, Hsing Hao Wu, 2018
Government 15 million 6.5% 10 years
GEF SeyCCAT, TNC,andWorld Bank,
he cumulative
Michael C.issuance
Government Huang, and of green bonds since 2007 has reached $521 billion
GEF
(Climate
SeyCCAT, and
e. Private
Hajime
onds Initiative Tanaka
2019), Investors
with2019 theand the General
highest growth Public
rate being5 years
DBS
in the Asia andDBS the Pacific
Nordic Investment 200 million 0.37%
egion. The many
The
Bank
Nordic successful
cumulative
(NIB)
Investment issuancecases
2019 of green
200 from sovereignty
bonds
million 2007orhas
since0.37% corporate
reached bonds
$521
5 years indicate
billion (Climatethat
reen/blueBankBonds
financing
World Initiative
Bank
(NIB) could 2019),
mean
2019 withmore
10 the highest
millionthan growth
fund
2019: rate being
access,
2.35% 3 andin the
years Asia
raise andStanley
awareness
Morgan the Pacific
of the
No. 1157
region. The many successful cases from 2020: sovereignty
2.70% or corporate bonds indicate that
election of cleaner
June
World
2020
energy
Bank financing2019
green/blue
and infrastructure
could mean 10 million
more2021:
investment
than 2019:
fund2.35%
3.15%
from private
access, and 3raise years investors
awareness Morganand the
Stanley
of the
eneral public. The of
selection behavior change
cleaner energy andin investment
infrastructure 2020: selection
2.70%
investment may
from alsoinvestors
private be an and important
the
Source: Asia Development Bank (2019); Nordic Investment Bank 2021:(2019);
3.15%World Bank (2018); World Bank (2019a); World
riving forcegeneral
in creating
public.aThe
Bank (2019b) larger market
behavior changefor sustainable
in investment ocean governance.
selection may also be an important
driving
Source: Asia force in creating
Development Banka(2019);
larger Nordic
marketInvestment
for sustainable oceanWorld
Bank (2019); governance.
Bank (2018); World Bank (2019a); World
Bank (2019b)
These existing bond issuances demonstrate the potential for countries to attract capital
Table 2: Roles of Stakeholders in the Blue Finance Mechanism
Asian toTable
Development
markets 2:Bank
Roles of use
Stakeholders
Institute
the sustainable of marine in the Blue Finance
resources. Mechanism
A Blue Bond scheme provides
Stakeholdercountries with
Stakeholder Objective
opportunities to raise
Objective funding Strength
more sustainably
Strength with Opportunity
a lower financial
Opportunity
These existing bond issuances demonstrate the potential for countries to attract capital
a. Developingburden.
states Furthermore,
and and developing
Development and better Blue Bonds
Access enables to the nations to
to the set clear sustainable
SIDSs
marketsa. Developing
marine to the states
SIDSsconservation
Development
sustainable
quality of targets.
use
quality of life
life
and
For of
better
marine
instance,
Access
TNC’sresources.
environment
environment Blue Bond AActivation
Activation
Blue
andscheme
and global
ofof
Bond civil
civil society
society
scheme
imposes
globalcollaboration
collaboration a provides
countries
b. NGO, NPO, commitment withto
b. NGO, NPO,
and IGO
opportunities
andprotect
IGO
Provision at
Provision
of policy
topolicy
least of30% raise funding
Flexibilitymore
of itsFlexibility
near-shore andandocean sustainably
areas,
bottom-
bottom- which
Creation
Creation of awith
of is,
a lower
in fact,
aglobal
global an financial
burden.
incentiveFurthermore,
for countries developing
recommendation
seeking
recommendation andfinancial
implementation support
Blue
and Bonds
support.
up
up powerenables
power for
for an
an
environmental
nations
agenda and
agenda to
and
resources for
set
human
human clear sustainable
marine conservation targets.
implementation support For instance,
environmental
initiative TNC’s Blue
On the other hand, there are challenges for the existing Blue Bond schemes as theirimposes a Bond
resources
implementationfor scheme
capacity
commitment tobanks
c. Development protectPoverty
at least 30%
reduction initiative
and of itsResource
near-shoreand implementation
ocean areas,
Assisting capacity
which
development is, in fact, an
function are limited to those of conventional bonds. First, they do not directly stimulate
c. Development and global funds provision and
of development connectivity are locally and development
regionally
the banks
incentivedomestic Poverty reduction
for countries
market seeking
the blue financial
foradvancement economy. Resource a and
support.
As
widely
Assisting
result, the existing
accepted schemes are still
and globaldependent
funds provision
on public of development
finance, connectivity are locally and regionally
d. Private sectors and Incrementincluding
of support
R&D provided
capacity andby international
A platform for thedonors.
global For
Oninstance,
the other advancement
hand,
the Blue Bonds
industries there are
issued by
shareholders’ challengeswidely
Seychelles
equity and
accepted
for the
and others
technology existing
transferdo not Blue
directly
arena Bond
under approach schemes
development the as their
d. Privatefunction
sectors
marine andare Increment
limited
industry. In other of words,
to business
those of incentive
scale R&D
conventional capacity
provision and
bonds.
remains aApartnership
First, platform
they
challenge dofortothe
not global
directly
profitable stimulate
industries companies shareholders’
e. Private investors and Returnequity
on aand intechnology transfer
Strong image growtharena under development Source:
Source: illustrated
Yoshioka, N., by
Wu,authors.
H. H., Huang, M. C., & Tanaka, H. Proposing regulatory-driven blue finance
the domestic that potentially
market for
business scale
the general public
play
the blueroleeconomy.
bonds/contribution to the
promoting As a creation
blue
for environment
result, Initiative
in SIDSs.
the to community
existing
partnership
Connecting
base and drive toward
schemes are still
Blue Bond on
dependent schemes
publicwith the domestic
finance,
environment market
including might be
support
conservation the key
provided to facilitating
by private
international
eco-friendliness donors. For mechanism for blue economy development. ABI Working Paper Series. No. 1157, June 2020.
e. Private investors
capitaland Return in
investment on financing the blue Strong image creation
economy. In this Initiative
regard, tothe
community
regulatory
instance,
the general Source: the Blue
public developed
amendment
Kedeputian Bidang Ekonomi
by the Bonds
authors. issued
atbonds/contribution
the national law to theby
level
Seychelles
for environment
aimed
and others doand
base
at providing incentives
not directly
drive
for private
the
toward
5.
approach
investors DISCUSSION 28
 REFERENCE #3: PROBLUE MULTI DONOR
World Bank TRUST
Financing FUND (1/2)
- PROBLUE MDTF
PROBLUE Multi Donor Trust Fund
Knowledge Pillar 1 Pillar 2 Pillar 3 Pillar 4
Management
and Innovation
Improved Marine Pollution Blueing of Integrated
Fisheries Management, Oceanic Sectors Seascape
Conducive Business Governance including Marine Approach
Climate, Blue Litter (Plastics)
Governance, Fiscal
and Financial Policy Economy
Blue economy
development Goal: To achieve integrat ed and sust ainable economic development in healt hy oceans
approach Public and
Private
investment Global knowledge Targeted TA throughout the
Investments
products & tools project cycle

Coastal fisheries initiative – Challenge Fund

Indonesia

Goal: To facilitate private sector investment in sustainable coastal fisheries

Challenge fund to attract private sector financing:

2. Prepare fishery
1. Identify 3. Appraise
for investment 4. Promote
fishery and business
(planning and to investors
supply chains case
management)
Consultation with communities and partnership with governments

Kedeputian Bidang Ekonomi 29

 REFERENCE #3: PROBLUE MULTI DONOR TRUST FUND(2/2)
26-Mar-20 11

PROBLUE di Brazil: Blue Platform PROBLUE Seychelles

di Seychelles: Blue Bond
Blue Bonds
NatureVest (TNC)
IFC (World Bank)
IDB (United States) Compensation
Sitawi (Brasil) Offsets
Fines
IBRD guarantee
OIKO Credit (Netherlands) Investors
$5m
BBOP Impact Pirvate Blue Bond
Oil and Gas
Blue carbon
Repayments GEF credit
Investors obligations Biodiversity $15m $5m
NGOs
Water Y8, Y9, Y10 Coupons
Tourism sector
Tourism
Comestics Payment for
Insurance National Government of Seychelles
ecosystem
Toyota (MPA Costa dos Corais) Grants
GEF
Eneva (Park ‘adoption’)
services
GCF
BID
World Bank Subsidiary Agreements
UNDP and UNEP
Multilaterais Blue bonds
Development Bank of Seychelles
KFW (Germany)
Bilaterais
Fundações International Blue Innovative
Debt Swap
Taxation of economic sectors
SeyCCAT ($3m)
($12m) Eligibility Criteria
NORAD (Norway) Grants instruments
USAID (USAID) Platform Fisheries transfarable rights Evaluation
FFEM (France) committees
JICA (Japan)
DIFD (UK) Grants Loans
European Union
Grants Loans
Waterloo Foundation
Grants Loans
Waitt Foundation
The Ocean Foundation
Stock re-building, fleet restructuring, fish processing,
Overbrook Foundation World Bank / GEF – Research, Management Plan, Education, MCS, R&D, etc.
aquaculture development, etc.
OAK Foundation
Blue Carbon Initiative US$18 MI to kickstart
The Marisla Foundation
Expected sources of funds the Blue Platform

Wider involvement of funding institutions has been carried out by PROBLUE in Brazil and the Seychelles.The
funding pattern in Brazil applies a variety of funding schemes and is managed through an integrated platform.

Kedeputian Bidang Ekonomi 30

Indonesia Presidency G20
 FOUR PRIORITY ISSUES ON DEVELOPMENT WORKING GROUP G20

1. 2. 3. 4.
Strengthening recovery from the Scaling up innovative
COVID-19 pandemic and ensuring Ministerial Meeting: Coordinating SDGs
financing instrument (blended Renewing global commitment achievement progress in the
resilience in developing countries
to withstand future crises through
finance) implementation for to multilateralism for G20.
3 key focus areas: sustainable development in sustainable development
developing countries.
MSMEs and Informal Sector

Adaptive Social Protection

Blue Economy and Green
Economy through Low Carbon
Development G20 Principles for Scaling Up G20 Development 2022 G20 Bali Update
G20 Roadmap for Stronger Private and Blended Finance Ministerial Declaration:
Recovery and Resilience in in Developing Countries, LDCs, Multilateralism for SDGs
Developing Countries, LDCs, and and SIDS Decade of Action
SIDS

G20 Development Ministerial Communique

Kedeputian Bidang Ekonomi 32
 STRENGTHENING RECOVERY FROM THE COVID-19 PANDEMIC AND
ENSURING RESILIENCE IN DEVELOPING COUNTRIES TO WITHSTAND
FUTURE CRISES

Background and Motivation

SDGs seatbacks and growing job losses Unsustainable and short-term
Future global challenges
caused by the COVID-19 pandemic oriented policies

Economic Pillar Social Pillar Environment Pillar

Green Economy and Blue Economy
MSMEs and the informal sector Adaptive Social Protection
through Low Carbon Development

Mainstreaming: Women, youth, and people living in vulnerable situations

G20 Roadmap for Stronger Recovery and Resilience in Developing Countries, LDCs, and SIDS

Kedeputian Bidang Ekonomi 33

 Scale-up Private and Blended Finance
Implementation for Sustainable Development
Background and motivation: Closing the SDGs financing gap requires significant increase of private finance
mobilization, on a scale that demands close coordination between public and private actors.

Three Gaps in Global Blended Finance Efforts

Missing blended finance policy and
practitioner frameworks from ‘the
perspective and context of developing
countries, LDCs, and SIDS
Need for additional insights and
Lack of implementation and
guidance on how to scale blended
capacity challenges consideration in
finance in the context of social
developing countries, LDCs, and SIDS
sectors

Content: Four Elements of Principles

1 2 3 4
Support domestic financial Design blended finance Improve impact management Bring blended finance to a large
ecosystems and market solutions to reach the “last and measurement, and scale through systemic and
development mile” promote transparency Transformational approaches

G20 Principles to scale-up private and blended finance implementation for sustainable
development in developing countries, LDCs, and SIDS

Kedeputian Bidang Ekonomi 34

 RENEWING GLOBAL COMMITMENT TO MULTILATERALISM FOR
SUSTAINABLE DEVELOPMENT

Cooperation Imperatives for Recovery

Renewing multilateralism for Developing a framework for Collective Improving global governance to
pandemic mitigation is needed as a Action by agreeing on principles of Renewed address global challenges affecting
prerequisite to achieve SDGs Multilateralism SDGs

Ministerial Declaration on
1. Global Vaccination Plan for
COVID-19
Content:
Principles of an Effective,
Recognition of Global
Statement to Relaunch Inclusive, and Networked
2. Health as Global Public 3. 4.
SDGs Decade of Action Multilateralism for SDGs
Good
Decade of Action

Ministerial Vision Statement: Multilateralism for SDGs Decade of Action

Kedeputian Bidang Ekonomi 35

 HOW WE CAN ADVANCE

Share a common interest to achieve the needed transformative action at the least cost
01 and engage in solidarity for a truly global, fair and sustainable recovery.

Turn the current COVID-19 crisis into an opportunity to accelerate a sustainable,

02 resilient and inclusive green and blue recovery.

Expand mutual understanding and build consensus on what constitutes a “just

03 transition” and how to achieve it in different country contexts.

The G20 Developing Working Group has taken concrete steps to promote a sustainable
04 recovery by promoting a territorial and ecological transformation.

Indonesia has an opportunity to build on these efforts to promote enhanced and

05 coherent global actions that foster a sustainable green and blue recovery and just
transitions both domestically and globally, as part of a G20 Roadmap for Stronger
Recovery and Resilience in Developing Countries, LDCs, and SIDS.

Kedeputian Bidang Ekonomi 36

 COLLABORATION IS THE KEY TO SUCCESSFUL LOW CARBON AND CLIMATE
RESILIENCE DEVELOPMENT IMPLEMENTATION AND IN SUPPORTING GREEN
ECONOMY AND BLUE ECONOMY
Collective efforts as well as multi-stakeholder and cross-sector collaborations need to be carried out to build
a better, resilient and sustainable economy.

Ministry/Institutions Development Partners Local Government

Academics Philanthropies Media Community

Kedeputian Bidang Ekonomi 37

 THE 1ST DWG G20 DISCUSSION ON GREEN AND BLUE ECONOMY

THE 1ST DWG G20 Discussion held on 24-25 February 2022

Some key recommendations to be included in the discussion of the Green
Economy and Blue Economy:
• Biodiversity aspects need to be included in the discussion of these
priorities to ensure that the concept of just transition does not cover the
principle of common but differentiated responsibility;
• Green economy principles such as circular economy, just
transition, and climate adaptation.

Post 1ST DWG G20

Circulation of zero draft G20 Roadmap (draft is under discussion).
The document covers a discussion of possible actions and possible deliverables that support these actions which covers:
1. Support developing countries, LDCs, and SIDS in mainstreaming low carbon development strategies into their national
development planning.
2. Recognise the blue economy as a new source of sustainable economic growth that contributes to the COVID-19 recovery, future First draft to be
resilience, and decent job creation. discussed on 2nd
3. Enhance developing countries’ capacities for transitioning to green economy and blue economy by promoting better evidenced- DWG G20 on 24-
based policy, integrated planning, mobilization at the required scale of private and public sources of finance to unlock green and
blue investments, technology transfer, knowledge exchange, and concessional fund.
25 May 2023
4. Identify workable approaches on financing the transitions towards the green economy and blue economy, as well as de-risking
and attracting green investments.
5. Build a shared understanding of what constitutes a just, sustainable, resilient, and inclusive transition.
6. Promoting international cooperation in enhancing investments associated with low-carbon technologies through SSTC.
Kedeputian Bidang Ekonomi 38