SUSTAINABLE BLUE FINANCE INSTITUTION: PRACTICAL FRAMEWORK & GOVERNANCE OF STAKEHOLDERS INVOLVEMENT
Two-thirds of the Earth's surface is covered by oceans, which are incredibly valuable to billions of people on a social, economic, and cultural level. Indonesia is a country that is 70% covered by the ocean and has more than 17,000 islands, making it one of the countries with huge potential for economic and natural resources in the world, particularly in the Blue Economy sector. To develop the Blue Economy sector, it is important to have Blue Finance, including financing and governance. There are national frameworks of Blue Finance developed by the Indonesia Climate Change Trust Fund (2021) and international frameworks and governance developed by Shibaa et al. (2021). This research employs a qualitative research method with a phenomenological approach. The phenomenological analysis used is Interpretative Phenomenology Analysis (IPA) based on post-positivist phenomenology. The main research question is how to create a practical framework and governance for Sustainable Blue Finance Institutions in Indonesia. Data was gathered through various interviews, participant observation, and direct participation of researchers in various activities. The new framework, called the Sustainable Blue Finance Institution, is based on the framework published by the Indonesia Climate Change Trust Fund (2021) and Shibaa et al. (2021). It consists of four groups of stakeholders: The Advisory Committee, Core Management, Funding Providers, and Implementing Partners. The Advisory Committee consists of institutions that have a direct role in Blue Finance, such as the Ministry of PPN/Bappenas, the Ministry of Finance, the Coordinating Ministry for Maritime and Investments Affairs, the Ministry of Marine and Fisheries, the Ministry of Environment and Forestry, the Financial Services Authority, and donors. The Core Management consists of a collaboration of the Indonesia Environmental Fund, the Indonesia Climate Change Trust Fund, and the Public Service Agency Fisheries Business Capital Management Institute. The Stakeholder Funding Provider Institution consists of two types of resources: from the Government of Indonesia (GOI) and from non-GOI sources. The Implementing Partner institutions could be cooperatives, private institutions, MSMEs, NGO or individuals. In practical terms, this research serves as a literature reference or guideline for GOI institutions or other stakeholder collaborations in order to unlock the potential of the Blue Economy in Indonesia. For academics, the framework elaboration process remains open for further exploration.
Blue Economy, Blue Finance, SDG 14, Sustainable Blue Finance Institution