The Urgent Need for Blue Bond Regulation in Indonesia

Indonesia, in collaboration with the UNDP, issued a sovereign blue bond in May 2023, valued at JPY 20.7 billion, to support the UN Sustainable Development Goals (SDGs). This bond, launched on the Japanese capital market, aims to promote sustainable marine ecosystems and the blue economy. This study investigates the need for blue bond regulation in Indonesia, advocating for the enforcement of international commitments and agreements. Using normative exploratory legal research with statutory and conceptual approaches, the study employs the legal convergence theory. The findings highlight the urgent need to regulate blue bonds in Indonesia and suggest that international treaties on blue bonds can be integrated into Indonesian law without conflicting with the 1945 Constitution. The study recommends the prompt preparation and ratification of a blue bond law through the harmonization of the relevant international agreements. The agreement related to blue bonds in the Indonesian legal system needs to be aligned with national laws and regulations, following the principles and requirements outlined in relevant international agreements. Alternatively, blue bonds issued by international organizations in Indonesia should ensure not only compliance with international standards, but also contribute to national sustainable development, taking into account international law and national interests.