Indonesia, boasting the world’s largest archipelago, stands as a custodian of immense marine riches. Despite contributing modestly to its economy, the marine sector, encompassing fisheries, tourism, and conservation efforts, holds vast potential. With fisheries accounting for over 2.5 per cent of the national GDP, coupled with a substantial workforce in fishing and aquaculture, Indonesia’s marine bounty presents a compelling case for sustainable resource management. Against the backdrop of UN SDG No. 14, Blue Sukuk emerges as a transformative financial instrument poised to redefine Indonesia’s approach to marine conservation and economic growth.
Blue Sukuk, a Shariah-compliant financial vehicle, directs funds towards environmentally sustainable marine and coastal projects. Distinguished by its thematic focus on the blue economy, this instrument merges Islamic finance principles with the imperative for ocean preservation. Offering both ethical and ecological returns, Blue Sukuk appeals to investors keen on fostering marine and coastal stewardship while reaping financial rewards.
Indonesia’s strides in sustainable finance are underscored by sovereign blue bonds and green Sukuk issuances, complemented by the establishment of the SDGs Government Securities Framework. Aligned with international standards, this framework sets the stage for sovereign issuances of green, blue, social, and sustainability bonds and Sukuk. By adhering to principles advocated by organiaations like the International Capital Market Association, Indonesia positions itself to harness its marine resources responsibly through blue Sukuk issuance.
Indonesia’s venture into blue Sukuk marks a paradigm shift in sustainable finance. Building on past successes such as samurai blue bonds and green Sukuk, this initiative solidifies Indonesia’s position as a global leader in innovative financing. Beyond financial gains, blue Sukuk offers a blueprint for balancing environmental integrity with economic prosperity, setting a precedent for global adoption.