Increase Seaweed Production, Menko Marves: Huge Potential for Downstreaming

Marves - Lombok Timur, Seaweed is one of Indonesia’s leading commodities that has great benefits for the economy, community welfare, especially in coastal areas, and the environment. Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut B. Pandjaitan, said that the potential for downstream is huge.

“From seaweed, we can produce bio stimulants or organic fertilizer that can help with the fertilizer subsidy issue and food security. Biodegradable plastics can solve Indonesia’s plastic waste problem. Food ingredients, such as wheat substitutes in noodles, can reduce wheat imports. Biofuel that can reduce dependence on fossil fuels, and much more,” explained Minister Luhut in his remarks at the “Showcase Piloting Budidaya Rumput Laut Skala Besar” in Ekas Bay, East Lombok, West Nusa Tenggara.

Indonesia itself also has a natural advantage as a seaweed producer because it is in the equatorial region where the sun shines all year round, so seaweed cultivation can be done throughout the year. In addition, Indonesian waters are relatively calm, and there are no typhoons or tornadoes that can damage seaweed cultivation.

More than 70% of Indonesia’s area is sea, with 12 million hectares allocated for cultivation. However, despite all its advantages, Indonesia’s seaweed production is still not optimal. Minister Luhut explained that currently seaweed cultivation only reaches 102 thousand hectares or 0.8% of it. More than 60% of seaweed exports are still in the form of raw or dried seaweed, with limited downstream.

“To be able to downstream, one of the key things that must be done is improvement at the upstream side. Just like agriculture on land, the productivity and efficiency of seaweed cultivation must be continuously improved. Today we see that the target of increasing productivity is not impossible to achieve. Through the work of our nation’s children, various innovations such as mechanization and the use of technology are being done to increase productivity on a large scale,” explained Minister Luhut.

Through large-scale cultivation covering 100 hectares with mechanization and technology, many economic benefits can be achieved, namely an investment of USD 2-2.5 million, the creation of direct employment for 100-150 people, production of 10-15 thousand tons of fresh seaweed per year, and equivalent bio stimulant production that can cover 1-2 million hectares of agricultural land.

“It’s not just Lombok fishermen who will benefit but fishermen everywhere will benefit. I convey that around 100 hectares are already operational, not just trial and error. We want this technology to develop because it will create jobs for 1 million people and reduce poverty, as well as have an impact on coastal communities to develop further,” added Minister Luhut.

The government will accelerate the comprehensive and measured development of the maritime industry. In this pilot project, we collaborate with BRIN, the Ministry of Marine Affairs and Fisheries, Sea6, Prospera, MTCRC, Conservation Indonesia, and Universitas Mataram to evaluate the impact of this project on the social-economic conditions of the community, water equality, environmental ecosystems, and carbon absorption potential.

“In this way, we will obtain accurate data for future policy improvements. Various programs will be implemented to support integrated acceleration both upstream and downstream,” explained Minister Luhut.

The acceleration of the seaweed industry involves other ministries and institutions, including the Ministry of Maritime Affairs and Fisheries, the Ministry of Industry, the Ministry of Finance, the Ministry of Home Affairs, the Ministry of SOEs, the Ministry of Investment, the National Research and Innovation Agency, local governments, universities, and development partners. Some programs that will be implemented include the provision of quality seeds, mapping of land potential using satellites, simplification of business licensing, research on superior seaweed types and environmental quality, preparation of social-economic aspects, improvement of processing quality, and market generation.

"In the future, I ask everyone to strengthen synergy and collaboration for the revival of the national seaweed industry. We believe that this will benefit SMEs. This showcase will also be assisted by ITS (Sepuluh Nopember Institute of Technology) students to develop the showcase gradually," concluded Minister Luhut.

Meanwhile, Minister of Maritime Affairs and Fisheries; Sakti Wahyu Trenggono fully supports the large-scale seaweed piloting showcase in Ekas Bay. He hopes that this activity can increase the knowledge and capabilities of cultivators in developing seaweed in a modern way. In addition, this piloting can absorb the harvest of cultivators to the maximum extent possible, thus impacting price stability and increasing welfare.

The MMaF itself, he continued, has built a 50-hectare seaweed modelling in Wakatobi, Southeast Sulawesi as a strategy to increase environmentally friendly national seaweed production and to encourage downstreaming of seaweed in Indonesia. He acknowledged that cross-sector collaboration is indeed needed to realize the downstreaming of seaweed which is the direction of President Joko Widodo.

On the same occasion, Minister of Industry; Agus Gumiwang Kartasasmita supported the downstreaming of seaweed. "The Ministry of Industry supports the optimization of seaweed development results by increasing added value through downstreaming of seaweed-based industries. Downstreaming is done by increasing the utility and capabilities of food industries such as carrageenan, jelly, and the like. In addition, it also encourages the diversification of processed seaweed into biostimulant products, biodegradable plastics, and in the future, biofuel products," said Minister of Industry; Agus Gumiwang Kartasasmita.

Meanwhile, Rajendra Aryal, FAO Representative in Indonesia and Timor-Leste, said that seaweed is a real game-changer for Indonesia's maritime sector - not just ordinary food and medicines; we are also talking about bioplastics and biofuels. The spotlight on Ekas Bay regarding seaweed cultivation is an effort to make seaweed a major player in Indonesia's growth.

"FAO has a close relationship with this commodity, and what we have done in Seriwe Bay through the ISLME project is similar to the goals Indonesia wants to achieve in Ekas Bay, but by applying the Ecosystem Approach to Aquaculture (EAA). We have learned a lot from working with small farmers and helping them become better in their crafts and working together to protect our seas, protect the environment, and avoid conflicts among many resource users. local community and ensuring everyone thrives in our beautiful Blue Economy by utilizing it as best as possible," Rajendra explained.

Acting Governor of West Nusa Tenggara, Lalu Gita Ariadi, thanked the central government for its attention and support for the development of this sector. "This activity is not only an innovation but also a real manifestation of our commitment to improving community welfare and advancing the maritime sector. Hopefully, this visit can provide a clear picture of the great potential and seaweed becoming the prima donna of West Nusa Tenggara province," said Lalu Gita Ariadi.

The Ambassador of India to Indonesia and Timor Leste, H.E. Sandeep Chakravorty, said that the large-scale seaweed cultivation project in Lombok is an excellent example of India-Indonesia cooperation in the blue economy. Sea6 Energy is a product of India's biotechnology innovation ecosystem. They are global pioneers in seaweed cultivation and processing technology.

"A larger investment in seaweed cultivation can address challenges in producing biodegradable industrial raw materials such as biofuels and bioplastics. Sea6's investment in Indonesia creates local environmentally friendly jobs, develops skills, creates opportunities, and builds sustainable local economies. We are pleased that companies like Sea6 are committed to increasing seaweed cultivation and processing in Indonesia," said Ambassador Sandeep.

Also present at the event were the Ambassadors of India and the United Arab Emirates, Regent and Mayors from all over Lombok, Acting Regent of Central Halmahera, Deputy for Coordination of Maritime Resources, Coordinating Ministry for Maritime Affairs and Investment, Rector of Universitas Mataram, FAO Country Representative, President Director of Sea 6 Energy Indonesia, UNIDO Representative for Indonesia and Timor Leste, Head of the Earth and Maritime Research Organization, BRI, CEO of Sea 6 Energy and President Director of Pupuk Indonesia, Officials from MMaF, Ministry of Industry, and Regional Officials of West Nusa Tenggara.

No.SP-45/HUM/ROKOM/SET.MARVES/II/2024

Communications Bureau
Coordinating Ministry for Maritime Affairs and Investment

This article has been published on the official website of the Coordinating Ministry for Maritime Affairs and Investment, which can be accessed via the following link: Increase Seaweed Production, Coordinating Minister for Maritime Affairs and Fisheries: Very Large Downstream Potential (maritim.go.id) (https://maritim.go.id /detail/increase-seaweed-production-menko-marves-potential-downstream-very-large), accessed on 29 February 2024, at 16:34 WIB.

Photo Gallery: Increasing Seaweed Production, Coordinating Minister for Maritime Affairs and Fisheries: The Potential for Downstreaming is Very Large