The Indonesian government is exploring the blue bank concept, which focuses on providing financing for projects in the marine sector, as it has good potential to support the national economy.
“We need to discuss the establishment of a blue bank,” deputy for maritime sovereignty and energy at the Coordinating Ministry for Maritime Affairs and Investment, Jodi Mahardi, said during the Bali Ocean Days Conference in Jimbaran here.
He added that the blue bank concept has been implemented in Seychelles, a country in the East African region, where there is a special financial services institution that provides dedicated funding to marine businesses.
Mahardi described the concept as a financing innovation in the blue economy sector.
Although there currently is no banking or financial service institution focusing on single financing for the country’s marine sector, state-owned banks or Himbara banks have the Merah Putih Fund, which is an instrument that can be used to finance the marine sector, he explained.
Startups can get Rp4.5 trillion, or around US$288.3 million, through the Merah Putih Fund, which was launched in 2021 and is supported by the Financial Services Authority (OJK).
“We are now exploring the possibility of Merah Putih Fund collaboration in the marine sector,” he informed.
The presence of innovative financing, he added, is expected to support economic growth while still paying attention to ecological health and the environment, especially ocean health.
Meanwhile, at the Bali Ocean Days forum, he highlighted Indonesia’s innovative efforts for supporting blue economy financing, for instance, the issuance of blue bonds.
Blue bonds were offered in Japan’s bond market for 20.7 billion Japanese yen, or around US$150 million, in May 2023 with the support of the United Nations Development Program (UNDP).—ANTARA
