3 hours ago
7
February 4, 2025 | 12:10 pm
TEMPO.CO, Jakarta - The governments of Indonesia and the United States have completed a debt diversion process worth US$35 million (approximately Rp573 billion) for conservation efforts and coral reef protection in the country. The Ministry of Finance stated that the United States (U.S.), Indonesia, and several non-governmental organizations (NGOs) signed the debt diversion agreement for the conservation program on July 3, 2024.
The Director General of Debt Management and Risk at the Ministry of Finance, Suminto, said that this significant agreement marks the fourth agreement between the U.S. and Indonesia under the Tropical Forest Conservation Act (TFCCA), which was reauthorized in 2019 as the Tropical Forest and Coral Reef Conservation Act.
"Most importantly, this is the first agreement that prioritizes coral reef ecosystems, which is a crucial step in preserving biodiversity in one of the world's most dynamic marine environments," Suminto told Tempo on Tuesday, February 4, 2025.
He said that the loan principal and interest payments, originally due to the creditor—the U.S. government—will instead be deposited into a Trust Fund managed by the Kehati Foundation, as agreed upon by the parties within the CRCA.
The funds, he explained, can then be used to finance the Ministry of Marine Affairs and Fisheries (KKP) programs related to coral reef conservation in Indonesia. Additionally, the funds can be distributed as grants to non-governmental entities, including NGOs, universities, local communities, and indigenous communities in Indonesia.
Through this program, Suminto said that there would be no financial terms or additional costs that would increase Indonesia’s debt burden. "This policy is beneficial because the loan payments will be redirected to support coral reef conservation in Indonesia," said Suminto.
At the same time, according to Suminto, the debt diversion also helps strengthen funding for Indonesia’s commitment to preserving ocean health and supporting sustainable fisheries. It enhances community involvement in coral reef conservation and supports the priority program implementation under the Blue Economy initiative, a key focus of the Ministry of Marine Affairs and Fisheries (KKP). "Specifically, the program aims to expand marine conservation areas and improve the monitoring and management of coastal and small island regions," Suminto added.
To ensure fund transparency, Suminto said that community organizations will be selected based on proposals submitted and approved by an Oversight Committee, which includes representatives from the Indonesian government, the U.S. government, the debt diversion partner, and contributing NGOs.
In addition to the debt diversion with the U.S., Suminto mentioned that Indonesia has signed an agreement with the German government for a Debt2Health deal, which converts Indonesia's debt of €75 million into transformative investments for public health. This agreement took place in mid-December 2024.
"This agreement is the largest Debt2Health exchange to date and will significantly enhance Indonesia's ability to combat infectious diseases and strengthen its healthcare system," said Suminto.
The converted funds will support efforts to control malaria, improve healthcare system infrastructure, and promote local pharmaceutical production. This initiative is designed to enhance diagnostic capabilities and build a more resilient healthcare system across the country. Additional focus will be placed on Indonesia’s efforts to combat tuberculosis (TB), as Indonesia has the second-largest TB burden in the world.
Editor's Choice: Israeli PM Netanyahu Arrives in Washington Ahead of Meeting with Donald Trump
Click here to get the latest news updates from Tempo on Google News
Donald Trump Unpredictable, Deputy Minister Talks About Indonesia-U.S. Diplomatic Relations Future
23 menit lalu
Deputy Minister of Foreign Affairs Arif Havas talks about Indonesia-U.S. diplomatic relations under Donald Trump's unpredictable administration.
Elon Musk Says He Is Working to Shut Down 'Beyond Repair' USAID
18 jam lalu
Elon Musk discussed the Department of Government Efficiency (DOGE) in a social media talk on Monday. He said work is underway to shut down USAID.
Stocks Slump, Dollar Soars As Trump Tariffs Trigger Trade War Fears
19 jam lalu
Donald Trump's tariffs on Canada, Mexico, and China triggered a trade war and a hit to global growth.
50% of Indonesian Migrant Workers in Malaysia Use Illegal Routes: SBMI
22 jam lalu
The Indonesian Migrant Workers Union stated that about 50 percent of migrant workers use illegal routes to work abroad.
Indonesian Migrant Workers Victims of Human Trafficking Hold Rally at Myanmar Embassy Today
23 jam lalu
The rally was held by 45 Indonesian migrant workers who were victims of forced labor in the online scam industry and have been repatriated from Myanmar.
Megawati to Meet Pope Francis to Discuss World Humanitarian Mission
23 jam lalu
The 5th Indonesian President Megawati Soekarnoputri will meet with the leader of the Catholic community Pope Francis today.
Indonesia Surrounded by Two Active Cyclone Seeds, BMKG Urges Extreme Weather Alertness
1 hari lalu
The Meteorology, Climatology, and Geophysics Agency (BMKG) reported that Indonesia is currently surrounded by two active tropical cyclone seeds.
Komnas HAM: Shooting of Indonesian Citizens in Tanjung Rhu Not the First Time in Malaysia
1 hari lalu
Komnas HAM states that the shooting of five Indonesian citizens in the waters of Tanjung Rhu by Malaysian authorities was not the first incident.
One Indonesian Victim of Shooting in Malaysia Still Critical
1 hari lalu
One Indonesian citizen who was a victim of the shooting in Malaysia is still in critical condition.
Indonesian Govt Urged to Eradicate Illegal Migrant Worker Business Mafia
1 hari lalu
Indonesian Migrant Workers Union urged the government to eradicate the mafia that runs the Indonesian migrant worker business.
