How Seaweed Farming Can Unlock Indonesia's Blue Economy - Tempo.co English

TEMPO.CO, Jakarta - A high-level delegation from the Indonesian government and UNDP visited Sidoarjo on September 17-18, 2026, to see how seaweed can help unlock Indonesia’s wider blue economy potential—strengthening coastal livelihoods, creating greater economic value and positioning Indonesia to compete in a growing global market.

The visit is part of a wider effort under the Archipelagic and Island States (AIS) Forum, a Government of Indonesia initiative whose Secretariat is hosted and facilitated by the United Nations Development Programme (UNDP), to demonstrate practical solutions for sustainable blue economy development. 

Deputy Minister of Foreign Affairs Arif Havas Oegroseno, Director General for Aquaculture of Ministry of Marine Affairs and Fisheries (KKP) Tb. Haeru Rahayu, representatives from Coordinating Ministry for Food Affairs, Deputy for Food Accessibility and Safety Nani Hendiarti, and Deputy for Maritime Resources Coordination at the Ministry of National Development Planning / National Development Planning Agency Dandy Satria Iswara, local government officials, and coastal communities took part in the field visit.

Delegates visited a seaweed cultivation site and Agar Makmur Sentosa cooperative to see how an integrated approach can strengthen production, livelihoods, and the wider seaweed value chain.

Seaweed is one of the opportunities through which Indonesia can unlock its broader blue economy potential. Indonesia is among the world’s largest producers of tropical seaweed, including Gracilaria spp., and remains a dominant global exporter, accounting for approximately 69 percent of world seaweed exports in 2025. Yet the opportunity extends beyond producing and exporting raw seaweed. Improving productivity, processing, technology and market access, alongside greater investment across the value chain, can enable Indonesia to capture more value domestically, create more jobs and increase incomes for coastal communities.

Sidoarjo is one of East Java’s important centres for pond-based Gracilaria seaweed cultivation and processing. In coastal ponds affected by environmental changes following the 2006 Lapindo mudflow, Gracilaria seaweed and milkfish are now cultivated together, putting underutilized ponds back to productive use while creating new economic opportunities for communities.

While Indonesia has significant potential to grow its blue economy, challenges such as low productivity, limited infrastructure and technology, gaps in skills, and difficulties accessing markets and finance continue to hold back the sector. The Sidoarjo pilot offers a practical way to address some of these challenges, while demonstrating how greater domestic value addition in the seaweed industry can strengthen the fisherfolk exchange rate, while attracting private sector investment and generating wider ecosystem benefits.

The approach connects improvements across the value chain—the different steps involved in bringing seaweed from farms to consumers, from cultivation and harvesting to processing, selling and reaching markets. This includes rehabilitating ponds and improving water management, while strengthening post-harvest facilities, shared equipment, cooperative management and farmers’ skills. 

At the Tlocor cultivation site, delegates observed seaweed harvesting, rehabilitated ponds and on-farm drying practices. At Koperasi Agar Makmur Sentosa, they saw how shared facilities for drying, cleaning and pressing seaweed can improve post-harvest handling and strengthen the value chain beyond production. 

“Indonesia has what it takes to become a global leader in the seaweed industry, not only because of the scale of its marine resources, but because of the people, knowledge and innovation that can turn those resources into sustainable economic value,” said Sara Ferrer Olivella, UNDP Resident Representative in Indonesia. “The opportunity is to move from a volume leader to a value leader—mobilizing investment and innovation to create higher-value products, better jobs and higher incomes, while strengthening Indonesia’s position in the global blue economy. What we see in Sidoarjo is one practical example of how this potential can be unlocked.”

The Sidoarjo experience reflects Indonesia’s significant potential to build a more inclusive and sustainable blue economy. With its rich marine resources and established seaweed production, Indonesia is well positioned to unlock greater economic and social value from the sector. UNDP works with the Government of Indonesia and other partners to support this ambition, including through a proposed Indonesia Seaweed Investment Partnership (ISIP), which seeks to strengthen coordination, mobilize investment, foster innovation and accelerate sustainable growth, creating greater value for Indonesian communities, businesses and the environment. 

“For Indonesia, the ocean is not only a source of economic opportunity; it is also central to our identity, food security and the livelihoods of millions of people,” said Deputy Minister Arif. “Our blue economy must therefore find the right balance between development and protecting the marine ecosystems on which our communities depend. Sidoarjo demonstrates how practical innovation and strong partnerships can help turn this ambition into action, while creating opportunities to share Indonesia’s experience with other archipelagic and island states.”

The high-level visit highlighted how practical initiatives such as the Sidoarjo seaweed experience can contribute to a much broader ambition: turning Indonesia’s vast marine resources into productive economic assets that generate better incomes and jobs, attract investment and strengthen the country’s role in the global blue economy. Through the AIS Forum, Indonesia can further share these experiences and build international partnerships to help unlock and scale the opportunities across its blue economy.