C

oral reefs are often referred to as the “rainforests of the sea”, forming some of the most diverse ecosystems on Earth.

Those in Indonesia are no exception — supporting a wide variety of marine life, from fish and molluscs to worms and crustaceans, and underpinning livelihoods for thousands of people.

One of the lesser known livelihoods dependent on the reef is trade in coral.

Indonesia is the world’s largest exporter of live corals, supplying 50 to 60 percent of the corals destined for home aquariums around the world.

The vast majority of this coral is cultured on farms around the coasts of Indonesia, involving over 12,000 people, primarily from local communities around the farms.

In May this year, however, Indonesia suspended all coral exports. No official reasons have been given, with unofficial explanations ranging from the need to renew health certificates; to problems with wild corals being passed off as farmed corals; to a five-year review of natural resource management.

This ban is having devastating effects on the local communities that rely on the reefs, and for Indonesia’s export industry.

Less obviously, however, this ban raises threats to the future conservation of the reefs.

The importance of coral reefs is widely recognized and the threats to them are numerous, from climate change and ocean acidification to sedimentation and pollution.

Protecting and maintaining them is a critical priority, but this is not always best achieved by closing down all interactions between people and reefs with this sort of broad-scale ban.

Coral farms themselves serve to increase the amount of reef habitat and support many other fish and invertebrate species. More importantly, however, by supporting coastal livelihoods and incomes, the coral farming industry provides an important incentive for communities to protect their local reef environment.

Communities around farms are motivated to protect their reefs from some key local threats, particularly cyanide and bomb fishing, extraction of coral for building materials, and pollution, and engage in reef restoration efforts and engage actively in efforts such as beach clean-up events.

Further, each year, members of the Indonesian Coral, Shell and Ornamental Fish Association (AKKII) return 10 percent of their coral production back to the wild to support reef rebuilding and restoration projects.

For example, since 2010 in Bali the Indonesia Nature Foundation (LINI) has been helping communities and marine ornamental fisheries restore reefs and fish populations.

The restored reefs can provide alternative ornamental fish collection areas to reduce pressure on existing reefs, provide employment opportunities and reduce the risks of further reef damage.

Locals support and engage in these initiatives in their own livelihood interests. Take away the livelihoods, and both the preservation of the coral and local support for restoration efforts are in question.

The ban is causing significant hardship: local businesses are reporting the need to sell capital equipment to help pay staff, sending staff home because they cannot afford to pay them, laying off workers, and some even closing up shop. Importers are starting to look elsewhere to source corals, raising threats of irreversible livelihood and job losses.

The latest information indicates that Indonesian exporters had lost an estimated US$2 million in revenue, and the head of AKKII estimates 50 percent of some 12,000 people employed in the industry have lost their jobs, and expects this to rise to 80 percent within the next month.

In a country with no welfare provision and a history of illegal fishing practices on coral reefs, it would be no surprise if people ended up reverting to destructive practices of the past, including dynamiting and cyanide fishing. While there are problems in the coral trade industry that need to be addressed, this blanket suspension of coral export is the wrong way to go about it and has the potential to be catastrophic for the reef ecosystem and the coastal communities that rely on it for their livelihoods.

Last year, Indonesia signed the Coral Reef Life Declaration to help implement the 14th United Nations Sustainable Development Goal, committing to develop environmentally sustainable business models that actively promote the health of coral reefs by engaging the private sector. Indonesia has come a long way in building a sustainable coral farming industry that supports employment and livelihoods for many thousands of people and contributes to the long-term conservation and restoration of its coral reefs.

To continue along a sustainable path, the government needs to urgently overturn the coral export ban, before it causes irreversible damage to local livelihoods, and to the reefs themselves.
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