Could be a new source of growth, Indonesia’s blue economy value to reach USD9.8 T in 2045

Jakarta -. The Ministry of National Development Planning/National Development Planning Agency (Bappenas) projects that the value of Indonesia’s blue economy will reach USD7.4 trillion-USD9.8 trillion by 2045. This projection increases 5-7 times from USD 1.3 trillion by 2021 according to the calculations of the Ministry of Marine Affairs and Fisheries (KKB).

As the world’s largest archipelagic country, Indonesia stands to gain enormously if it can develop the potential of the blue economy.

This was disclosed by Leonardo Adipurnama alias Degu Samboto, Lead Sectoral Development and Infrastructure Specialist at the Ministry of National Development Planning/Pappenas in a special edition of the “In-Spire-Ration to Success” podcast broadcast on YouTube. Channel by Spire Indonesia, a global business research and consulting firm based in Tokyo, Japan, Thursday, November 23 2023.

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Tekuh said that now all countries are looking at the blue economy and seriously thinking about creating new sources of growth. New sources of growth are urgently needed to boost the economy after being hit by the COVID-19 pandemic.

„If we want to recover, we must look for new sources of growth. „The blue economy was chosen as a new source of growth because of its enormous potential and at the same time Indonesia’s desire to reaffirm its identity as a maritime country,” he said in an official statement on Thursday, November 23, 2023.

Indonesia is not making optimal use of its maritime potential. Only partially, only possible from the fisheries side. In fact, including recent concepts developed by the World Bank, the European Commission and the Organization for Economic Co-operation and Development, the blue economy is defined as all economic activities related to ocean affairs.

Jeffrey Bahar, COO of Spire Research and Consulting, said the blue economy includes tourism, ports, offshore mining, maritime transport, logistics, construction on water, tidal-based renewable energy, waste management, etc.

„Recently new regulations have come out, namely blue finance and blue carbon finance introduced by the International Finance Corporation,” he said.

This blue economy concept is actually stated in Law No. 32 of 2014 on Maritime Affairs.

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Then at the „ASEAN Blue Economy Forum” on 2-4 July 2023 in Tanjung Bandon, Bangka Pelitung Islands, the Ministry of National Development Planning/Papenas launched the Indonesian Blue Economy Roadmap (Indonesia Blue Economy Roadmap) 2023-2045. Based on a Bappenas study, Indonesia’s blue economy will contribute 15 percent of its gross domestic product (GDP) by 2045. Currently the contribution is only 7.6 percent.

According to Jeffrey, Indonesia is likely to achieve this goal. If Indonesia’s blue economy can double the downstream processing of marine products, increase fishery exports, expand cruise tourism, strengthen the logistics industry, and more, it can be opened up as widely as possible.

“Neighboring countries like the Philippines and Vietnam have started working actively on the blue economy. „It seems that Indonesia will have no difficulty in achieving the target of 15 percent of GDP by 2045 from the blue economy,” he concluded.