Wealth inequality is a very influential reality in today’s global socioeconomic fabric. Some countries have an abundant wealth in natural resources but smaller amounts of international currency needed for international trade. Other places have less of the precious Natural wonders that they could protect with their economic power. International relationships and trade agreements are complex, volatile and bear some risks for the involved parties. But they offer opportunity for environmental progress where it is not obvious and readily observable. Case and point is the 35 million dollar debt-for-nature swap between Indonesia and the U.S., which is geared toward coral reef preservation in eastern Indonesia over the next decade. They way it works is the funding needed for the project will be offset with the cancellation of debt that is owed to the United States. Local and international conservation groups are working on the implementation on programs to protect reefs in vulnerable location and strengthen marine protection while supporting community development projects to add alternative ways to fund the livelihood of nearby locals.

While this new approach to finance conservation efforts finds widespread praise and support, critics point out that a lack of aftercare and monitoring has put the success of some previous conservation efforts in question. The leader of the Indonesian Forum for the Environment, Parid Ridwanuddin warns that “if we want to continue coral reef restoration … the same way as before, then we will repeat the same failures.”

The deal was announced in Early August 2024 by the Global Fund for Coral Reefs (GFCR). The international organization had provided financial and technical support to facilitate the transaction. “This agreement helps reinforce the idea that a healthy ocean is in the global interest and a shared responsibility,” so the Director of Marine Management Gustaaf Manappo who is seated at Indonesias Ministry of Marine Affairs and Fisheries.

Underlaying legislation to make this all possible is the Tropical and Coral Reef Conservation Act of 1998, which allows low and middle income Countries to relieve debt to the United States by funding Tropical Forest and reef conservation efforts.

This first of its kind agreement between the US and Indonesia will place projects in the Banda Seascape, the Bird’s Head Seascape, and in Lesser Sunda. The program will seek to strengthen marine protected areas, increase management capabilities and support of alternative livelihood programs in the region.

While this is not the fist agreement of its kind, it is a first for Indonesia. In 2022 the middle American Country of Belize signed a debt-for-nature swap with The Nature Conservancy that cut the debt of Belize by a whopping 10%.

While this might now be the cure for all problems and dangers the reefs face during the next decades expected continued warming of sensitive tropical waters, it is a great way to infuse funding and to initiate urgently needed preservation efforts. The GFCR aims to raise 515 million dollar in grants and investment capital before the 2025 U.N Ocean conference to help conserve 7.4 million acres of reef in in multiple projects globally.

Just as the worlds most coral reefs our aquaculture operation is located in the area known as the coral triangle. So we at the Bali Coral Farm welcome every international effort to highlight the regions environmental challenges amplified by warming ocean waters and complicated by overpopulation and tourism. It will need more than one country or organization to have a real impact. We welcome the initiative.