Background

 Despite its great contribution in sustaining global economic growth and livelihoods, our oceans are still vulnerable to the havoc brought by various human activities. As the world’s 7th largest economy based on GDP, our oceans facilitate 80% of international goods shipping – in which the percentage rises even higher for most developing countries (UNCTAD, 2022). It is estimated that 3 billion people that live in developing countries rely on the ocean, including 90% of fishers around the world and those who receive income from ocean-based tourism (UNCTAD, 2022). Nonetheless, the oceans still suffer the effects of fishing exploitations, climate change, and pollution. 

The escalating environmental degradation from rapid global industrialization requires reevaluations of our economic system. A green economy emerged as a solution by incorporating environmental and social sustainability approaches into the conventionally damaging system. This alternative, however, could not be implemented on its own. The massive scale of destruction from our business activities calls for support from a circular economy and a blue economy. A circular economy aims to eliminate waste by redesigning every product to be renewable, continuously recyclable, and safe to re-enter nature by the end of its use (Ellen Macarthur Foundation, 2020). While a circular economy promotes systemic changes in the production process, a blue economy ensures the inclusion of sustainability measures for the oceans. The World Bank defines a blue economy as the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem.” (BioTrade efforts from UNCTAD and recent fisheries agreement by WTO). Together, the proposed solutions will strengthen the global efforts to attain the pillars and goals of SDGs 2030 Agenda – especially SDG 14 (Life Below Water) which aims to conserve and sustainably use the oceans, seas, and marine resources for sustainable development. 

A blue economy becomes significant for Indonesia as a country with the second longest coastline in the world, in which 150 million people or 60% of its population, live within its coastlines (Rudiarto, Handayani, and Setyono, 2018). Economically, Indonesia has generated over 7 billion jobs, $27 billion in income from the fishery sector, and $3 billion in income from the ocean tourism sector (World Bank, 2021). Indonesia has been institutionalizing the Blue Economy in economic development through several frameworks, programs, and policies. In 2021, the Ministry of National Development Planning launched a framework of blue economy development to optimize Indonesia’s strategic position as a maritime country and foster economic transformation. Indonesia also promoted the “Blue Recovery” strategy during post Covid-19 era through the G20 Development Working Group to formulate multisectoral collaboration from diverse actors. Based on the Ocean Prosperity Report (Kaczan & Aquino, 2021), Indonesia implemented four strategies for blue economy development. First, marine and coastal assets management improvement. Second, incentives and investment mobility to improve circular economy services and infrastructure measurement in supporting the blue economy. Third, data collection and monitoring system advancement to expand survey coverage and detail timely information. Fourth, “blue” recovery from the Covid-19 pandemic. Eventually, Indonesia strives to mainstream the blue economy agenda through its position as ASEAN Chairman in 2023 (Kemenko Ekon, 2023). 

Several local communities in Indonesia have shown positive progress in blue economic practices, such as in Brebes, Central Java (Mira, Firdaus, and Reswati, 2014) and Probolinggo (Marwiyah and Fitria, 2023). Meanwhile, several regions in Indonesia with prominent marine potentials, such as East Nusa Tenggara (Mahardianingtyas, Safitra, Agustio, 2018), Maluku (Mahmud, 2012), and Sulawesi (Phela, Ruhane, and Mair, 2019), have not been explored by the government to boost the economic benefits while conserving marine ecosystems. Local communities in the southern part of Yogyakarta have developed several practices supporting the implementation of the blue economy. Some focus on the fisheries industry, while others are trying to build sustainable coastal tourism, as implemented in Kulon Progo (Wiratma and Nurgiyanti, 2019). Recognizing the enormous potential of coastal tourism and marine resources, the provincial government of Yogyakarta is currently focusing on developing the blue economy through advancing dialogue with Indian-Ocean Rim Association (IORA) countries in implementing Blue Economy, Collaboration and Governance and also The Maritime Silk Road. 

As the “blue economy” is still a novel concept in Indonesia, there is a need to bridge the gaps between local communities’ needs and policymakers in formulating effective policies. Government optimal support in expanding market access, capabilities to manage waste, and perform sustainable tourism (Phelan, 2020) is needed to maximize these efforts (Nurhayati, March 2013; Widyaningrum and Suhartini, 2019; Ghalidza, 2020). Furthermore, government support should not be limited to financial support but also should focus on upgrading skills (Praptiwi et al., 2021). For instance, government support can be applied to developing salt management to make Indonesia an exporter of quality salt (Aris, Mamahit, and Ras, 2022) or building networks with national and international institutions to produce and distribute the products of the blue economy. 

Hence, since the blue economy not only focuses on the sustainability of the ocean and economic gains but also involves local communities, it is pivotal to incorporate the interest and views of local communities into the blue economy public policy.