Activities

Technical Assistance II

As a maritime country, Indonesia has a huge potential and competitiveness in the Blue Economy area. Indonesia is the second largest producer of captured fish, after China, followed by Peru, India, Russian Federation, the USA, Vietnam, Japan, Norway, and Chile, according to United Nations FAO's data in 2020. Although Indonesia has a comparative advantage in the fisheries sector, Indonesia's ocean export structure is still dominated by primary commodities export.

The total ocean trade balance is still deficit which mainly contributed by ships, port equipment and parts thereof and high-technology and other manufacturing n.e.c.. Hence, developing Blue Economy should be comprehensive and integrated, including human resources, supporting equipment, infrastructure, logistics, technologies, and innovations, according to the latest ARISE+ Indonesia study on the "Supply and Demand Analysis of Blue Economy Sectoral Development".

ARISE+ Indonesia Trade and Investment Expert, Widdi Mugijayani, presented the analysis at the Development of Indonesia's Blue Economy Roadmap Seminar, one of the Ministerial Meeting G20 Side Events organised by the Ministry of National Development Planning (Bappenas) in Belitung Island on 7 September 2022.

ARISE+ Indonesia supported Bappenas in conducting the study on developing the Blue Economy Roadmap, which comprised nine stages. The Supply and Demand Analysis of Sectoral Development is the third stage of the roadmap development process. The study focused on identifying the indicators and baseline of the Blue Economy in Indonesia based on the supply-demand framework and Blue Economy scope developed by the Bappenas. The Blue Economy scope covers six main sectors, including capture fisheries and aquacultures, renewable energy, marine-based manufacturing, R&D and education, marine conservation/protected area, and marine-based tourism.

Building a sustainable ocean economy is vital for Indonesia as an archipelago country. The Blue Economy aims not only to obtain economic benefit and ensure the sustainability of the ocean resources and economic prosperity but also to potentially transform and diversify Indonesia's economy, which can cover the non-terrestrial resource management and utilisation within the green economy framework. In addition, the Blue Economy can also provide some solutions to the impact of climate change in the marine sector through low-carbon ocean development, sustainable marine tourism, and marine energy development.

In his keynote address, the Minister of National Development Planning, Mr Suharso Monoarsa, reiterated Indonesia's commitment to integrating Blue Economy into the country's development agenda.

"Blue Economy will be a part of Indonesia's economic transformation agenda and to take effect under Indonesia's Presidency of G20 in 2022 and upcoming ASEAN Chairmanship in 2023. Indonesia would like to take leadership on Blue Economy development in the Global Agenda to contribute to accelerating global recovery," Mr Suharso said.

According to Widdi, improving participation in the Global Value Chain could be one of the strategies to increase Indonesia's capacity in fisheries and marine products processing manufacturing.

The study also recommended initial steps for developing marine-based manufacturing, including identification of priorities for marine technology and innovation investments by the Government and private sector, building the industry and skills roadmap focused on delivering long-term skills required by the industry.

Indonesia has also yet to harness an immense untapped potential in marine-based tourism by developing more marine ecotourism and improving infrastructure, technology, safety, and security.

Get the latest updates on ARISE+ Indonesia

Subscribe for free!