Indonesia is home to a vast coastline that stretches for approximately 81,000 kilometers, making it the second-longest in the world. Along this extensive shoreline lies a massive untapped potential: seaweed. Recognizing this opportunity, President Joko Widodo (Jokowi) has called for increased efforts to push the downstream development of seaweed, emphasizing that its various by-products could even include aviation fuel.
During the opening of the 22nd Congress of the Indonesian Economists Association (ISEI) in Surakarta, Central Java, on Thursday, September 19, 2024, Jokowi highlighted the importance of maximizing seaweed’s economic potential. He stressed that despite its promise, the country has yet to implement an efficient downstream management system.
“[In fact] from seaweed, we can develop products such as organic fertilizers, agar, cosmetics, flour, and now, even aircraft fuel can be derived from it,” Jokowi explained, underlining how transformative the industry could be.
Jokowi also pointed out that Indonesia’s vast coastline provides the perfect foundation for cultivating seaweed on a massive scale. He encouraged ISEI to play an active role in shaping policies that would further develop this labor-intensive industry.
“This is a huge opportunity, but it needs to be properly planned and strategized. The right design is crucial to achieving concrete results,” he urged.
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In response, Perry Warjiyo, Governor of Bank Indonesia (BI) and Chairman of ISEI, spoke in favor of the strategy. He emphasized that his organization supports a phased approach to food and resource downstreaming, particularly focusing on commodities that can bolster food security, stabilize prices, and support labor-intensive sectors in the short term. These include staples like rice, chili, shallots, and fish.
In the medium to long term, Perry proposed focusing on industries that could significantly boost economic growth and address Indonesia’s current account deficit. This would involve processing commodities such as seaweed, palm oil, and sugarcane, which hold substantial export value.
“The success of food downstreaming depends on key strategies, including institutional strengthening, trade policies, local government support, and financing solutions,” Perry concluded, emphasizing the need for a holistic approach to drive the sector forward.
With the government’s focus on boosting seaweed downstream processing, Indonesia’s potential to become a leader in the global seaweed industry is evident. This vision, coupled with the right policies and support, could turn the nation’s natural resources into a significant economic driver, bringing benefits across the supply chain.
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