Recently, Indonesia achieved a significant milestone by launching the Blue Economy Roadmap at the ASEAN Blue Economy Forum, hosted by the Ministry of National Development Planning (Bappenas) on the picturesque Belitung Island. This comprehensive roadmap is the result of collaborative efforts from various stakeholders, including the instrumental contribution of ARISE+ Indonesia. As a maritime nation, Indonesia places strategic importance on this roadmap as it not only drives economic prosperity but also prioritises the well-being of marine ecosystems, ensuring that future generations can reap the benefits of a thriving ocean economy.
Remarkably, Indonesia stands as the first country within ASEAN to adopt a comprehensive Blue Economy Roadmap. As the current ASEAN Chair, Indonesia is keen to foster the development of the Blue Economy Framework at the regional level and serve as an exemplar for other nations in charting their blue economy document. Given the vast territorial waters within ASEAN's domain and the tremendous potential for a blue economy roadmap to uplift communities, the Blue Economy Framework carries profound strategic significance.
We had the privilege to engage in an insightful conversation with Mr Teguh Sambodo, Expert Staff to the Minister for Leading Sector and Infrastructure Development at the Ministry of National Development Planning (Bappenas). During our discussion, we delved into the ways the Indonesian Blue Economy Roadmap can unlock the untapped potential of our marine resources, ultimately benefiting communities while safeguarding the health and sustainability of the marine ecosystem for the prosperity of future generations.
The following is an excerpt from our exclusive interview.
Q: Congratulations on the successful launch of the Indonesian Blue Economy Roadmap 2023-2045. It is undoubtedly one of our proudest achievements. Given that Indonesia is a maritime nation, could you shed some light on what led to the development and launch of the Blue Economy Roadmap at this point in time? Additionally, could you kindly share some insights into the Blue Economy Roadmap and its key elements?
TS: The Blue Economy Roadmap acknowledges Indonesia's unique identity as the world's largest archipelago, boasting 17,504 islands and the second-longest coastline spanning approximately 108,000 km. Within this vast maritime territory, Indonesia possesses abundant marine biodiversity and natural resources, providing ample opportunities to establish new and emerging sectors. From marine living and non-living resources to industry, tourism, transportation, and logistics, Indonesia's waters offer a wealth of economic potential, contributing significantly to community welfare.
Despite the immense size and value of the blue economy, Indonesia's ocean economy remains predominantly limited to conventional sectors, such as capture fisheries, aquaculture, and fish processing, contributing only about 3.6% to the Gross Domestic Product (GDP) over the past five years.
We often being asked, "Why has this Blue Economy Roadmap taken this long to materialise?" It's because maritime development has only gained prominence under the leadership of President Jokowi. As a result, the establishment of a dedicated coordinating ministry for maritime affairs marked the initial stride towards consolidating our identity as a maritime nation.
In response to the COVID-19 pandemic, the President mandated an economic transformation to expedite recovery and progress towards becoming a developed country. However, due to COVID-19, the original target of achieving developed country status by 2036 shifted to 2043, requiring a minimum annual economic growth rate of 6% or more. Before the pandemic, Indonesia faced stagnant economic growth, averaging 5%.
To boost economic growth, the strategy revolves around enhancing the productivity of existing sectors while developing new sources of economic growth related to marine-based economies. However, sustainability must be prioritised to ensure continuous benefits from these economic resources, aligning with the vision of blue economy development: "Our diverse coastal and marine resources are sustainably managed through a knowledge-led Blue Economy to create socio-economic prosperity, ensure a healthy marine environment and strengthen resilience for the benefit of current and future generations."
Our Blue Economy Roadmap relies on three pillars of sustainable development: social, economic, and environmental. The Roadmap also informs that if Indonesia takes a blue economy approach with a stronger emphasis on the health and preservation of marine biodiversity and resources, it can create the overall benefits 12 times greater than a balanced approach, which would only produce nine-fold benefits. This is the value we strive to deliver through this roadmap.
Ultimately, the Blue Economy Roadmap serves as a comprehensive guide to harnessing and managing marine resources sustainably, ensuring their health, longevity, and resilience for the prosperity of today's population and future generations. Achieving this goal necessitates strong collaboration and coordination among stakeholders at both the central and regional levels. By embracing this roadmap's principles, Indonesia can unlock the true potential of its blue economy for the welfare of communities while safeguarding the health of coastal and marine ecosystems.
Q: Why was this roadmap launched to coincide with the ASEAN Blue Economy Forum?
TS: First, we wanted to show to other ASEAN member countries that Indonesia has taken significant steps to consolidate its blue economy in a more structured manner. ASEAN had successfully formalised the Leaders Declaration on Blue Economy during Brunei's ASEAN Chair in 2021. Indonesia took the initiative to elaborate the declaration for the Indonesian context by preparing Blue Economy Development Framework for Indonesia's Economic Transformation in 2021 and became the first country in ASEAN to have a Blue Economy Roadmap. Although we recognise that the concept of the blue economy is not entirely new, we view it as an integral part of our efforts to drive economic transformation and strengthen our identity as a maritime country.
The process of consolidating the blue economy in Indonesia was initiated by a joint statement between the Minister of Bappenas, the Swedish Minister for Infrastructure, and the Swedish Minister for the Environment in October 2021, emphasising the importance of the blue economy in boosting our economy. Subsequently, we engaged with the OECD, which had completed a country diagnostic for the ocean economy for Indonesia. After thorough discussions with Sweden and the OECD, we agreed to develop a framework as a starting point. We began formulating a blue economy concept tailored to suit Indonesia's unique context. In November 2021, one month later, we proudly launched the framework during the Indonesia-Sweden Sustainability Partnership Week, with support from the OECD. Following that milestone, we dedicated approximately a year and a half to crafting the comprehensive roadmap.
We intend to send a message to other ASEAN member countries that such consolidation can be accomplished at the country level. We hope to inspire and encourage other ASEAN member countries to follow in our footsteps in consolidating the blue economy concept for various stakeholders within a unified roadmap.
We are delighted to receive positive responses, especially from the Philippines. They expressed interest in emulating Indonesia's approach and committed to consolidating their efforts after witnessing our achievements during the ASEAN Blue Economy Forum held in Belitung.
Secondly, as the 2023 ASEAN Chair, Indonesia prioritised the ASEAN Blue Economy Development Framework as one of the Priority Economic Deliverables (PED). The ASEAN Blue Economy Forum was held to enrich discussions regarding the framework and how to initiate collaboration and explore blue financing opportunities. Our goal is for the participants to gain a comprehensive understanding of the blue economy roadmap that Indonesia has developed. This includes insights into the framework, how to initiate its implementation, foster collaboration, and secure funding. As the current ASEAN Chair, we presented a comprehensive package that showcases Indonesia in consolidating and developing the blue economy.
Acknowledging that not all ASEAN countries have maritime borders, we have included freshwater aspects within the blue economy development framework, encompassing lakes and rivers. Moreover, Indonesia's blue economy roadmap includes aquaculture, which is particularly relevant for landlocked countries that rely on aquaculture rather than capture fisheries for their fisheries industry.
Laos, as one of the landlocked countries in the region, has also proposed a broader perspective on the blue economy, relating it to trade. They hope that despite not having direct access to the sea, the development of the blue economy in ASEAN will positively impact trade within Laos, promoting progress and economic growth.
Coincidentally, in the Indonesian context, trade, transportation, and logistics are among the priority sectors in the blue economy. Hence, these aspects are also highly relevant to Indonesia's comprehensive approach to the blue economy.
Q: Which sectors are prioritised in the Blue Economy Roadmap?
TS: The Indonesian Blue Economy development will focus on uplifting the established sectors, which include marine capture fisheries and aquaculture; marine-based industries such as marine-based food processing, shipbuilding, and salt and chemical industries; maritime trade, transportation, and logistics; and tourism.
The Indonesian Blue Economy Roadmap also strongly supports the growth of emerging sectors, namely renewable energy, biotechnology and bioeconomy, research and education, and marine conservation and sustainable management of ecosystem services. The development of these sectors is a crucial effort to harness the untapped potential of our marine resources for the welfare of our people.
Q: What would be the potential benefits and the expected outcomes of the Blue Economy Roadmap?
TS: The Blue Economy is envisioned to become a source of sustainable and inclusive growth for Indonesia. This vision is translated into three main targets. Firstly, we aim to increase the Marine Protected Area to 30% or 97.5 million hectares of Indonesia's waters by 2045, fostering a healthy, diverse, and productive marine environment. Secondly, we strive for the maritime sector to contribute 15% to the country's GDP by 2045, promoting sustainable economic growth. Lastly, we aspire to see maritime employment accounting for 12% of total employment in Indonesia by 2045, contributing to prosperity for individual Indonesians, communities, provinces, and the nation as a whole. Thus, this blue economy roadmap is expected to yield multiple benefits, particularly for the welfare of coastal communities whose livelihoods depend on the sea.
Q: What would be the concrete steps to implement the Blue Economy Roadmap?
TS: The first crucial step in implementing the Blue Economy Roadmap is to disseminate it to all stakeholders, both at the central and regional levels, to encourage stronger engagement and understanding, making it a valuable reference for all. We hope that various ministries, institutions, international agencies, and local governments will adopt and integrate this roadmap into their strategies and work plans. In the initial phase of implementation (2023-2024), our primary focus will be on consolidating Indonesia's blue economy ecosystem and fostering better coordination among stakeholders. To facilitate this, we will establish a dedicated Blue Economy Secretariat based in Bappenas, responsible for coordinating and fostering collaboration among relevant parties.
As an initial step towards implementing the Blue Economy Roadmap, we will conduct a Blue Food Assessment, which aims to create a blueprint for an ocean-based food system in Indonesia. Subsequently, we will analyse and translate the findings into regulations that will ideally foster multiple benefits for the community, particularly coastal communities.
The roadmap outlines strategic action plans to be implemented in five phases, spanning from 2023 to 2045.
Following the first phase I mentioned earlier, the strategy of the second phase (2025-2029) emphasises boosting the development of the Indonesian blue economy as a new source of growth. This involves increasing the added value of the blue economy in established sectors and enhancing the resilience of food security through improved blue food systems.
In the third phase (2030-2034), blue economy development will concentrate on expanding Indonesia's blue economy sector through diversification, with a particular emphasis on emerging sectors like renewable energy, bioeconomy and biotechnology, as well as research and innovation. This phase is expected to create more quality jobs, leading to better community well-being.
Blue economy development in the fourth phase (2035-2039) focuses on increasing the contribution and competitiveness of Indonesia's blue economy in the global value chain. This is shown by the improvement of the quality and supply chain of the established and emerging sectors.
The development of the blue economy in the final phase (2040-2045) aims to create an inclusive, advanced and sustainable Indonesian blue economy, leading the global value chain sustainability and creating a new growth curve for the next generations.
Each phase will be implemented through a set of action plans that will serve as a reference for the work plans of public and private stakeholders, supporting the achievement of the vision of sustainable blue economy development in Indonesia.
Q: Recently, you participated in a study mission facilitated by ARISE+ Indonesia, where you visited several European countries to establish contacts and explore innovations in urban mobility, renewable energy, sustainable cities, and healthcare. From this enriching experience, what do you consider to be the key takeaways, particularly in relation to how the Blue Economy Roadmap can attract investments in the renewable energy sector? In what ways can it accomplish this goal?
TS: During our study mission with ARISE+ Indonesia, we had the opportunity to visit Denmark and witness their remarkable progress in renewable energy transformation. The abundance of wind turbines caught our attention as they dotted the landscape, and we were equally amazed by their presence at sea. What's even more remarkable is that Denmark has made significant strides in developing offshore wind farms with various types of turbines. They utilise fixed-foundation turbines for areas with relatively shallow waters and employ floating wind turbines for deeper waters. Their ambitious goal of achieving 100% reliance on wind turbines by 2030 showcases their forward-thinking approach.
Interestingly, we had a prior working visit to the same location in 2021. However, this time, we delved further by exploring financing institutions that displayed a keen interest in investing in Indonesia to support the development of new renewable energy sources, specifically harnessing ocean currents and wind turbines. For Indonesia, experts recommend the use of floating wind turbines, primarily due to the country's dense territory and population distribution. Developing wind farms on land could lead to disturbances in residential areas, while fixed-foundation wind turbines may not be suitable considering Indonesia's seismic activity.
As we move forward, it is crucial to note that the implementation of these innovations in Indonesia requires a thorough assessment of the applicability to local conditions. By doing so, we can ensure that these advancements bring maximum benefits to the community without causing any social and environmental conflicts. Implementing such a ground-breaking initiative requires a careful understanding of local circumstances, and we are committed to achieving sustainable progress for our country.
Indonesia's Blue Economy Roadmap lays the groundwork for the expansion of various sectors, with renewable energy emerging as one of the key priorities. The government envisions renewable energy as a new crucial source of economic growth, capable of diversifying opportunities and fortifying the marine-based economy while ensuring the sustainable management of marine resources in the country. Within this comprehensive roadmap, a SWOT analysis of priority sectors, including renewable energy, serves as the foundation for defining missions, outcomes, indicators, and the Strategic Action Plan aimed at propelling the renewable energy sector forward.
Designed for the period 2023-2045, the Indonesia Blue Economy Roadmap aims to consolidate policies, programs, and activities. It fosters a collaborative approach, uniting all stakeholders in a shared vision to drive the development and advancement of renewable energy. By laying this strong foundation, the roadmap facilitates the creation of improved policies and regulations, thus enticing investments in the renewable energy sector.
Q: Could you share your perspective on the cooperation and contribution of ARISE+ Indonesia in the development of the Blue Economy Roadmap? Could you also share some lessons learned from this cooperation that might guide future collaborations with development partners?
TS: We extend our utmost gratitude to ARISE+ Indonesia for their invaluable support and contribution to the development of this Blue Economy Roadmap. Through their meticulous studies, including the Development of the Blue Economy in Indonesia Based on the Supply and Demand Framework, the calculation of the Indonesian Blue Economy Index (IBEI) data, and the IBEI Projection, they have provided us with tremendously useful insights. These results have the potential to shape policies not only at the provincial level but also on a national scale.
While we are extremely satisfied with the outcomes, we acknowledge that there is room for improvement. As a valuable lesson for future endeavours, we believe that having an oceanographer as part of the research team would greatly enrich the dimensions of the findings. Their expertise and experience would undoubtedly bring a new level of depth and understanding to our research, propelling it to even greater heights.
As the ARISE+ Indonesia program approaches its conclusion, we are grateful for the connection with another EU-funded project facilitated by ARISE+ Indonesia. This collaboration will play a crucial role in advancing the implementation of our Blue Economy Roadmap, which includes conducting the Blue Food Assessment. ARISE+ Indonesia's contributions have been pivotal in propelling our vision forward, and we sincerely appreciate their support.