The United States of America, the Republic of Indonesia, and four non-governmental organizations (NGOs) have signed debt-for-nature swap and coral reef conservation agreements under the Tropical Forest and Coral Reef Conservation Act (TFCCA). The agreements, signed on July 3, 2024, will reduce Indonesia’s debt payments to the United States Government by $35 million over the next nine years. In exchange, Indonesia has committed these funds to support grants aimed at protecting and restoring the country's coral reef ecosystems through a newly established conservation fund.
Local NGOs will utilize grants from this fund to support projects that directly benefit coral reef ecosystems and the communities dependent on them. Yayasan Keanekaragaman Hayati Indonesia (KEHATI), an organization with a 30-year track record in terrestrial and marine conservation, will administer the new 2024 coral reef conservation agreement.
The swap is facilitated by contributions from the U.S. Government under TFCCA, Conservation International (CI), and The Nature Conservancy (TNC). Grants provided under this program will support activities such as conserving protected areas, improving natural resource management, and developing sustainable livelihoods for communities reliant on coral reef ecosystems.
“Indonesia is home to some of the most biologically diverse coral reef ecosystems in the world that support the livelihoods of millions of Indonesians. The U.S. Department of Treasury is committed to advancing efforts that protect valuable ecosystems while promoting economic development. The strong collaboration among the United States Government, the Republic of Indonesia, and our NGO partners has made this important agreement possible,” said Assistant Secretary for International Trade and Development Alexia Latortue.
This agreement marks the 23rd TFCCA deal following similar agreements with Bangladesh, Belize, Botswana, Brazil, Colombia, Costa Rica (two agreements), El Salvador (two agreements), Guatemala, Indonesia (three agreements), Jamaica, Panama (two agreements), Paraguay, Peru (three agreements) and the Philippines (two agreements). Previous debt-for-nature swaps between Indonesia and the United States in 2009, 2011 and 2014 generated nearly $70 million for restoration and sustainable use of tropical forests. Collectively across all countries involved in TFCCA deals so far more than $415 million will be generated to protect tropical forests and coral reef ecosystems.
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