Indonesia launches marine trust to fund coral reef insurance

Swiss Re is a key partner in this initiative.

Indonesia has established a Marine Biodiversity Trust to support sustainable marine and fishery programs, with a focus on financing coral reef insurance. 

The initiative follows the issuance of Ministerial Regulation No. 27 by the Ministry of Marine Affairs and Fisheries (KKP) in November 2024, and is backed by the United Nations Development Programme (UNDP).

The Trust, also referred to as the “Blue Window,” will be managed through the Indonesian Environmental Fund Management Agency (BPDLH), the country’s designated channel for climate and environmental financing. 

It aims to mobilise both public and private funds for marine ecosystem protection, with a key application being the development of a parametric coral reef insurance product for the Gili Matra Islands.

Swiss Re, a key partner in the initiative, has completed data collection from the Gili Islands and is currently designing the insurance product. 

Once implemented, the policy will enable rapid funding for reef restoration following natural disasters, reducing recovery time for local coastal communities. 

These communities rely heavily on tourism, aquaculture, and fisheries, with many residents earning less than $15 per day.

Indonesia’s coral reefs, which host 72% of global coral species, contribute over $3b annually to the economy but face mounting degradation. 

The new regulation enables the government to optimise budget allocations by allowing third-party contributions—such as payments from marine space users—to be directed into the BPDLH for risk financing.