Indonesia Debt-for-Nature Swap
Debt-for-nature swap to reallocate $35 million towards the conservation of Indonesia's coral reef ecosystems
Land-Based Pollution
Deforestation and Agricultural Conversion
Aquaculture Practices
Overfishing and Destructive Fishing
Mangrove Deforestation
Unsustainable Tourism
Coral Reefs Restoration
WastewaterThe Indonesia Debt-for-Nature Swap is a landmark financial mechanism established under the U.S. Tropical Forest and Coral Reef Conservation Act (TFCCA), allowing Indonesia to redirect a portion of its external debt toward environmental protection. Through this agreement, $35 million has been reallocated specifically for the conservation of Indonesia’s coral reef ecosystems, with a strong focus on protecting critical biodiversity within the Coral Triangle—one of the most marine-diverse regions on Earth. The initiative targets priority areas such as the Bird’s Head Seascape in West Papua and the Lesser Sunda–Banda Seascape, both of which are vital to global coral reef health and the livelihoods of coastal communities. By easing debt burdens while funding marine conservation, this debt swap strengthens Indonesia’s long-term commitment to sustainable ocean management and biodiversity protection.
View 2026 UpdatesFurther details of this deal are available in the case study.
The below diagram illustrates the structure of this finance solution:
