AIS Forum Encourages Archipelagic and Island States to Issue Sovereign Blue Bond Through the Strategic Blue Financing Guidelines

PRESS RELEASE

COMMUNICATIONS AND MEDIA TEAM OF THE 2023 HLM OF THE AIS FORUM

No.21/SP/TKM-AISFORUM2023/10/2023

Jakarta, 5 October 2023 – As one of the commitments to advance the blue economy sector, the Archipelagic and Island States (AIS) Forum is ready to support archipelagic and island states in issuing sovereign blue bonds.

This support is demonstrated through the AIS Forum’s commitment to collaborate in preparing the Blue Financing Strategic Framework. This document serves as an investment guide in blue economy activities, taking into account the social, economic, and environmental impacts.

The Blue Financing Strategic Framework document was formulated through cooperation between the AIS Forum Secretariat, the Coordinating Ministry for Maritime Affairs and Investment of the Republic of Indonesia, and the Innovative Financing Lab of UNDP (United Nations Development Programme) Indonesia.

Published in 2022, this innovative document is designed to promote investments in sustainable marine-based or marine-related economic activities. The document targets governments, financial service sectors, philanthropists, and international/donor organizations with significant potential to support the blue economy.

"We realize that cross-stakeholder cooperation is essential to facilitate the global transition to a more sustainable blue economy. With this guidance, stakeholders from all sectors will find it easier to identify opportunities and play a role in sustainable investments in the blue economy," said Jodi Mahardi, Deputy for Maritime Sovereignty and Energy Coordination of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves), in Jakarta, Thursday, 5 October 2023.

This document also serves as a reference for the Indonesian Government, through the Ministry of Finance, in issuing sovereign blue bonds. In May 2023, the Indonesian government issued its first sovereign blue bonds and offered them to the public, with a total value equivalent to 20.7 billion yen.

This issuance showed Indonesia's commitment to harnessing innovative financing sources to promote sustainable investment and use of marine ecosystems for the benefit of society.

This significant achievement serves as a crucial milestone in highlighting the immense potential of investments in this sector.

Indonesia has identified blue sectors and projects that meet sustainability criteria based on the framework developed in collaboration with the AIS Forum Secretariat. The Indonesian government subsequently has implemented best practices to ensure that funds obtained from Blue Bonds are directed toward initiatives that support the principles of the blue economy.

"Indonesia's success in launching sovereign blue bonds can serve as a blueprint for other countries to utilize blue financing potential as a tool for economic growth, environmental preservation, and long-term prosperity while safeguarding their unique maritime ecosystems," Jodi said.

Based on the successful example set by Indonesia, the AIS Forum Secretariat believes that the Blue Financing Strategic Framework can be an appropriate approach for other archipelagic and island states to issue similar sovereign blue bonds.

This strategic approach will not only enhance transparency but also ensure that investments align with sustainable development goals, especially for archipelagic and island nations heavily dependent on their marine resources.

In the future, the AIS Forum Secretariat will continue its efforts to introduce the Blue Strategic Financing Framework to other archipelagic and island states. This must be accompanied by an active role in supporting these countries in issuing blue bonds to support their marine financing agendas.

Discussions on the Blue Strategic Financing Framework will be a key theme in the 1^st High-Level Meeting of the AIS Forum which will be held in Bali on 10-11 October. (AIS Forum Secretariat/TR/Sri Widadi/Wisnu Wardoyo).

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About AIS Forum:

The Archipelagic and Island States (AIS) Forum is a global platform for cooperation among island and archipelagic states that aims at strengthening collaboration to address global issues with four main areas of focus: climate change mitigation and adaptation, the blue economy, marine plastic debris, and good maritime governance. The 2023 High-Level Meeting of the AIS Forum is organized to reinforce the role of the AIS Forum as a center for smart & innovative solutions and a platform for collaboration in promoting the future agenda of global maritime governance.

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Deputy for Maritime Sovereignty and Energy Coordination of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) Jodi Mahardi says in Jakarta, 5 October 2023, that Indonesia's success in launching sovereign blue bonds will serve as a blueprint for archipelagic and island states.