Coordinating Maritime Affairs Minister Luhut Pandjaitan speaking at the 2018 Our Ocean Conference in Nusa Dua, Bali, on Tuesday. (Antara Photo/Irsan Mulyadi)

Protection of Marine Resources Must Include an Insurance Mechanism, Minister Says

NOVEMBER 01, 2018

Nusa Dua. Coordinating Maritime Affairs Minister Luhut Pandjaitan has raised the importance of protecting Indonesia's coral reefs and called for the establishment of an insurance mechanism for marine resources.

"We have to implement innovative mechanisms that will ensure marine areas are protected. If we can put an economic value on forests, why can't we also do that for coral reefs?" Luhut said  in a speech at the 2018 Our Ocean Conference in Nusa Dua, Bali, on Tuesday.

He said there is little discussion on measures to insure marine areas, noting that the country has yet to come up with a solution on how the government and society can transfer risks to third parties to protect marine areas.

The minister also raised this issue last month when he and Finance Minister Sri Mulyani Indrawati met with International Monetary Fund managing director Christine Lagarde.

Luhut said luxury resorts, such as those commonly found in Nusa Dua, including Westin, should include protection of coastal area around their properties as part of their operational costs.

"They have to make sure that they maintain their immediate coastal areas… It should not be part of their CSR [corporate social responsibility] but it should be included in their balance sheets. This way, we can become more sustainable and protect our marine areas," he said.

The minister said he had instructed the head of the Indonesian Tourism Development Center, which manages the Nusa Dua area, to engage with these resorts.

He added that the resort industry, insurance companies and multilateral financial institutions should be involved in concrete actions as part of a collaborative effort to protect marine resources.

President Joko "Jokowi" Widodo said on Monday that Indonesia has fulfilled its commitments to conserve 20 million hectares of its seas in record time – two years earlier than projected.