Indonesia, a country with vast marine resources, is exploring the potential of seaweed downstreaming as a key driver of economic growth. The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has stated that the development of downstream seaweed processing could overtake nickel processing in the next 5-10 years [db781a3d]. Indonesia is currently the second-largest seaweed producer in the world, and with the utilization of seaweed, the country can increase economic value, reduce dependence on the mining sector, and address plastic waste and food security issues [db781a3d]. The World Bank study projects that seaweed downstreaming has a market potential of more than US$10 billion for organic fertilizers and more than US$40 billion for bioplastics [db781a3d]. Recognizing this potential, the Maritime Affairs Ministry is currently cultivating 100 hectares of seaweed as a pilot project and plans to develop a bioplastic factory in the future. The goal is to have 1.2 million hectares of seaweed area in the next 5 years [db781a3d].
In addition to seaweed downstreaming, Indonesia is also focusing on the blue economy and sustainable marine resource exploration. Coordinating Minister Luhut Binsar Pandjaitan emphasized the importance of adopting the blue economy to explore marine resources and ensure the sustainability of underwater biodiversity. The blue economy approach aims to stimulate economic growth, create job opportunities, and preserve the marine ecosystem [61850f1a]. Indonesia, with 17,500 islands and 70 percent of its territories covered by water, is believed to be home to 8,500 fish species and has the potential to produce about 50 million tons of fish per year [61850f1a]. Luhut encouraged the nation to capitalize on its vast waters to develop blue carbon and play a more prominent role in global trade, considering that around 45 percent of international shipping activities rely on passage through Indonesian waters [61850f1a].
The development of the seaweed downstreaming industry not only offers economic benefits but also contributes to environmental sustainability. Seaweed can be used to produce organic fertilizers and bioplastics, which can help reduce plastic waste and promote a circular economy. By diversifying its economy and tapping into the potential of seaweed, Indonesia can achieve sustainable growth and address pressing environmental challenges [db781a3d].
Indonesia's focus on the blue economy extends beyond seaweed downstreaming. The country aims to maximize its blue economy potential by developing sectors such as fisheries, marine tourism, maritime transportation, renewable energy, and waste management [c7a83953]. The recent launch of the Indonesia Blue Economy Roadmap 2023-2045 aims to guide the sustainable and significant growth of the blue economy [c7a83953]. If Indonesia maximizes its blue economy potential, it could contribute 15% to the country's GDP by 2045 [c7a83953]. With its abundant marine resources, including coral reefs, natural gas reserves, and fishery resources, Indonesia has enormous potential in the blue economy [96dd7e23]. The Natuna Sea alone has 222 trillion cubic feet of natural gas and can produce 504,000 tons of fishery products annually [96dd7e23]. Indonesia's blue economy potential is valued at $1.3 trillion per year, and it is expected to create 12 million new job opportunities by 2030 [96dd7e23].
In addition to the blue economy, Indonesia is also strengthening its economic cooperation and bilateral trade with other countries. The economic partnership between Indonesia and Malaysia is consistently advancing, with bilateral trade valued at US$28.5 billion in 2022 [9cd165c5]. President Jokowi Widodo has emphasized the importance of strengthening economic ties with Malaysia [9cd165c5]. Meanwhile, the Turkish Minister of Trade has announced a $5 billion investment plan in Kuwait, aiming to enhance economic cooperation between the two countries [d4e4b57d]. Saudi Arabia, on the other hand, leads IPO activities in the MENA region, while China is expected to achieve its annual GDP growth target of around 5% this year [d4e4b57d]. Qatar and Indonesia are also experiencing growth in their trade volume, with expectations to exceed $1 billion by the end of 2023 [e6611157].
The blue economy presents a vast opportunity for Indonesia to diversify its economy and achieve sustainable growth. By harnessing the potential of its marine resources, including seaweed downstreaming, Indonesia can not only contribute significantly to its GDP but also create jobs and improve the livelihoods of its people. With the implementation of the Indonesia Blue Economy Roadmap 2023-2045, the country is poised to become a global leader in the blue economy sector. As Indonesia strengthens its economic cooperation and bilateral trade with other nations, it can further enhance its position in the global economy and foster mutually beneficial relationships. The future looks promising for Indonesia as it embraces the blue economy and unlocks the vast potential of its marine resources [db781a3d].