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Rehabilitating Indonesia's Coral Reefs, Which Are Threatened By Illegal Fishing and Mining

MANILA, PHILIPPINES (6 December 2002) - The Asian Development Bank (ADB) approved today a US$33 million loan to rehabilitate and manage coral reefs in Indonesia.

Resource degradation and pervasive poverty are the related problems that beset Indonesia's coastal and marine sector.

In the project area, where up to around 80% of the population live below the poverty line, the extensive coral reefs and associated ecosystems are threatened by human activities such as destructive and illegal fishing, sand mining and coral mining.

In addition, the sector continues to suffer from policy, legal and institutional constraints.

The Coral Reef Rehabilitation and Management Project (Phase II), the second of a three-phase comprehensive 15-year program, will adopt a holistic approach and focus on a few key provinces where the benefits will be greatest.

It aims to enhance capacity to manage coral reef resources and rehabilitate coral reef ecosystems to help raise income and living standards.

The project, building on the framework and program established by the first phase, will reduce poverty by promoting sustainable management of coral reef resources.

The two major components are institutional strengthening and project management, and community-based resource management and development.

The intended beneficiaries include small fishers, fish farmers, fish processors and workers in the fishing industry and allied fields of coastal communities in six districts in the provinces of Riau, North Sumatra and West Sumatra.

The ADB loan will fund 80% of the total project cost, with the remainder financed by the Government and project beneficiaries.

Drawn from the concessional Asian Development Fund, the loan will have a 32-year term, including a grace period of 8 years, an interest charge of 1% per annum and 1.5% per annum thereafter.

The project, to be implemented by the Ministry of Marine Affairs and Fisheries, is expected to be completed by 30 June 2009.

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