A recent private sector initiative to help fund sustainable natural rubber plantations in heavily degraded land areas of Indonesia has received much praise and caution. The initiative, issued by the Tropical Landscapes Finance Facility (TLFF) in February this year, was a multi-tranche USD 95 million sustainability bond – and it marked the first ever sustainability bond issued in Southeast Asia. Aside from being the first transaction of its kind in the region, the issuing of the bond also opens the door for a different type of financing for rubber plantations in Indonesia, and one that can support profitable expansion through private investment while still keeping sustainable practices at the forefront.
