Sovereign blue bonds are often framed as innovation, but the challenge lies in how they are structured and brought to market. This teaching case examines Indonesia’s blue bond issuance through the lens of market entry, instrument design, and alignment with broader financing strategies. Set against rising ocean-related risks and growing investor focus on sustainable finance, the case highlights how design choices interact with debt management and fiscal frameworks. It offers a practical lens for understanding how sovereign decisions translate into market signals, with implications for pricing, risk assessment, and credibility. The case supports discussion on the trade-offs underlying sustainable sovereign financing.
