Indonesia is the world’s largest archipelago comprising over 17,500 islands. Covering an area of about 790 million hectares with over 95,000km of coastlines and a land territory of about 200 million hectares. Indonesia is one of the 17 mega-diverse countries in the world, hosting 17 percent of the world's wildlife. Its islands are home to a high variety of species, including many endemic types. However, the full potential of the country's biodiversity is undervalued and decreasing. The activities of BIOFIN in Indonesia aims to strengthen the national biodiversity financing framework and close the financing gap for the conservation and sustainable use of biological diversity by assisting IBSAP (Indonesian Biodiversity and Strategic Action Plan) in identifying, accessing, combining and sequencing sources of biodiversity funding to meet IBSAP targets/Aichi targets.
PRIORITISED FINANCE SOLUTIONS
- Strategizing Islamic Fund and Matching Private Fund for Marine Protected Areas (MPA)
- Green/Blue Islamic Bond (Sukuk) for Biodiversity Project
- Ecological Fiscal Transfer (EFT)
- Corporate Social Responsibility for Biodiversity
In this PIR process, the roles of Government institutions in financing and utilization of conservation areas mapped out. In terms of policy, threats to biodiversity still require supporting laws and regulations. Policy analysis reveals laws and regulations that have a negative impact on biodiversity and laws and regulations needed to support biodiversity conservation. Considering policy and institutional context in Indonesia, following are the key recommendation for biodiversity conservation and sustainable use of natural resources:
Use policy mix and proactive measures;
Synchronize of various biodiversity policies and institutions to ensure effective and efficient implementation for biodiversity protection and utilization.
Appropriate special management institution for biodiversity conservation and utilization at national level and endorsed by government regulation
The Biodiversity expenditure review has been conducted and is at finalization stage. Studies on biodiversity expenditures is one of the first stages of BIOFIN initiatives to identify and measure the amount of biodiversity expenditures in Indonesia, either by the government (public spending) and other parties outside the government, as well as to estimate the expenditure needs of biodiversity in the future.
Through this process the total expenditure on biodiversity during year period 2006-2016, the total biodiversity budget of the central government reached $3.5 billion USD fluctuating annually, which amount of 0.87% of the annual central government budget.
Finance Needs Assessment was conducted to measure financial need and gap for achieving national biodiversity target set at Indonesia Biodiversity Strategy Action Plan (IBSAP), and the results are being finalized by the national team.
BFP proposes steps to implement a mix of financial solutions in order to expand and improve the country’s biodiversity financing and achieve national biodiversity targets. Several recommendations related to the implementation of biodiversity finance solutions include focusing on prioritized strategies/actions, acquiring non-fiscal resources, engaging with a broader group of stakeholders, and developing a clear roadmap to implement all of the action strategies and the prioritized biodiversity financial solutions: 1) ecological fiscal transfer; 2) strategizing Islamic fund for biodiversity; 3) green sukuk for biodiversity; 4) crowdfunding; 5) CSR for Biodiversity