Blue Bond: Innovation in Financing Indonesian Maritime Infrastructure Development
DOI:
https://doi.org/10.47747/snfmi.v3i1.3182Abstract
Indonesia, the world’s largest archipelagic country, possesses vast maritime and geostrategic potential. However, the maritime sector’s contribution to national GDP has stagnated at about 11 percent, mainly due to a significant infrastructure financing gap, of which only 25 percent is covered by the State Budget (APBN). Within the blue economy framework, blue bonds are introduced as an innovative instrument to mobilize funds for sustainable maritime development. This study reviews global practices of blue bonds, with particular attention to Indonesia’s first issuance in May 2023, and offers policy recommendations. Using a qualitative literature review of regulations and institutional reports, the analysis shows that blue bonds can effectively finance marine conservation and infrastructure but face risks of bluewashing due to the lack of clear technical standards for “blue” projects. The study highlights the need for credible project prioritization, based on Asian Development Bank’s (ADB, 2023) eight categories. Strengthened regulations, blended finance, inclusive governance, and transparent implementation are essential to ensure Indonesia’s blue bond success and to strengthen its position in the global blue economy.
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