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Indonesia has the most biologically diverse coral reefs worldwide. However, many marine
areas of Indonesia, including the Spermonde Archipelago of South Sulawesi, have become
increasingly degraded due to global environmental change and local pressures including
coastal runoff and destructive fishing practices. As ocean health declines, small
island villages of the Spermonde Archipelago experience food insecurity and growing
levels of poverty. These small island communities face challenges in developing alternative
livelihoods to fishing due to limited access to economic markets and resources. As
conservation strategies evolve to better incorporate the importance of natural resources
to people, microcredit has emerged as a possible tool in addressing both conservation
and development objectives in the region.
Created in 1998, the Coral Reef Rehabilitation and Management Program (COREMAP) is
a national conservation initiative that melds bottom-up and top-down policy approaches
to protect coral reefs and empower the coastal and island communities that depend
upon marine resources. One way in which COREMAP seeks to reduce pressure on marine
resources is through the provision of small loans for the development of alternative
livelihoods to fishing. Through 74 semi-structured interviews with loan recipients
and village staff in eight small island villages, this study examines the impact of
the COREMAP microcredit system on the generation of alternative incomes in the Spermonde
Archipelago.
Results show that COREMAP small loans fostered the development of additional income
sources to fishing. Although the COREMAP microcredit program achieved the development
goal of income diversification, it has thus far fallen short of the conservation objective
to reduce fishing pressure. The creation of alternative livelihoods is incredibly
complex. Small island villages in Spermonde face small, variable incomes and limited
livelihood opportunities. Microcredit may be unable to achieve conservation goals
in the region without demonstrating its ability to support businesses that provide
higher incomes than fishing. In light of these findings, this study recommends policy
strategies that could address existing challenges to business success and program
sustainability, including increased loan amounts, partnerships with private industry,
funded positions for village COREMAP staff, regular loan repayment meetings, greater
flexibility in loan repayment schemes, and a combined savings-credit approach.
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