Financial solutions for biodiversity in contributing to the economic development in Indonesia

Abstract

Having strategic position makes Indonesia rich in biodiversity. However, there is a gap in funding this biodiversity; whereas, the existence of this biodiversity can be optimized by the government to enhance the economic development in Indonesia. This study aims to analyze potential financial solutions to fill the gap and increase the biodiversity funding in Indonesia. This research did a literature study from various sources such as BIOFIN countries, UNDP, and IBSAP of Indonesia; and conducted an assessment based on the results, sources, financial impact categories, and likelihood of success categories. The results show that out of 156 financial solutions studied, 32 of them have high financial impacts and are most likely successful to be implemented in Indonesia, and 8 of them are very potential to be implemented; those are state budget, corporate social responsibility (CSR), nature swap debts, taxes and fees in the tourism sector, payment for ecosystem services, ecological fiscal transfers (EFT), zakat, infaq, shadaqah, and waqf (ZISWAF), and green sukuk.

Developing Green Waqf Model for Environmental Issues

“…There are many studies and papers published in line with the purpose of this article. These studies show the advantages and benefits of waqf in SDGs 15 such as Onny (2017), Oktaviani et al (2018), Obaidullah (2018), and Khan and Hasan (2019). There are some studies that focus on forest waqf, such as Yakoob et al (2017), proposing waqf as an alternative forest preservation for Malaysia.…”

“…According to Obaidullah (2018), waqf-based development is in line with the goals of SDGs and is compatible with maqasid sharia. Waqf is also one of the financial solutions for biodiversity in contributing to economic development in Indonesia (Oktaviani et al 2018).…”

Strategi Pengembangan Green Waqf dalam Mendukung SDG 15 di Indonesia

“…Salah satu solusi keuangan untuk kontribusi pembangunan ekonomi di Indonesia adalah wakaf (Oktaviani et al 2018). Menurut Obaidullah (2018) pembangunan berbasis wakaf sejalan dengan SDGs dan sesuai dengan tujuan kemaslahatan yang ingin dicapai syariat agama (maqasid syariah).…”

Tourism on the Island of Buton in Eastern Indonesia

“…The priority of developing the infrastructure of Indonesia and other issues has historically led to low funding for scientific research among the islands (Rochmyaningsih, 2018). It is possible, though, that researching the biodiversity of Indonesia could play a role in its economic development, which would not only contribute to a better understanding of the ecology of Wallacea, but also improve the quality of life of citizens living on remote islands (Oktaviani, et al, 2018).…”