Seaweed Nation: Indonesia's new growth sector - Connectivity, People and Place

 
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Seaweed Nation: Indonesia's new growth sector - Connectivity, People and Place
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      Backgrounder April 2020
      No. 02/2020

      Seaweed Nation:
      Indonesia’s new growth sector

                                      Connectivity, People and Place

                                                                       Supported by:

Seaweed nation: Indonesia’s new growth sector                                          1
Seaweed Nation: Indonesia's new growth sector - Connectivity, People and Place
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                                                PRINCIPAL PARTNERS

                                                 POLICY PARTNERS

                                                      South Sulawesi       Ministry of Transportation
                                                   Provincial Government    Republic of Indonesia

                                                  MEDIA PARTNER

Seaweed nation: Indonesia’s new growth sector                                                           2
Seaweed Nation: Indonesia's new growth sector - Connectivity, People and Place
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Authors: Hasnawati Saleh and Eugene Sebastian

Editorial: Marlene Millott and Tim Fitzgerald

Design: Jesse Kartomi Thomas

March 2020

You are allowed to copy, distribute, and transmit this work for non-commercial purposes.

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INTRODUCTION
In the small coastal village of Pangkep District, South        Seaweed farming is a growth industry in South Sulawesi.
Sulawesi, seaweed farming has become a profitable              According to Deloitte, the province alone contributes
business. Of all fisheries and aquaculture activities,         18% of global red seaweed production and supports the
seaweed contributes the highest in household income.           livelihoods of 40,000 households. Yet, the vast majority of
Communities can earn an average of US$3,000 to $4,000          red seaweed is not processed or refined in South Sulawesi.
a year. In fact, farming seaweed can far exceed income in      It is instead sent elsewhere for processing, limiting
fishing, which is helping turn more to seaweed farming as      Indonesia’s role in the seaweed global value chain and
a full-time occupation.                                        leaving farmers impoverished.

As an archipelagic nation, Indonesia has more than             Recognising its potential, the national government has
17,000 islands. Its coastline is the second-longest in         made seaweed strategic to its economy. This backgrounder
the world after Canada. Its marine area spans 1792             looks at seaweed in Indonesia.
million hectares, three times the size of its landmass.
The potential production of fisheries and aquaculture is
enormous. It is about 100 million tons per year, compared
to the current output of 20 million tons per year. (Subjakto
S, 2019)
Seaweed can boost the economy and improve the
livelihood of coastal communities. Indonesia is already
the largest seaweed producer in the world. It accounts for
more than a third of global seaweed production. In 2014,
its exports were A$300 million, with production increasing
by about 30% per year. (Sedayu, B.B., 2018)

Seaweed nation: Indonesia’s new growth sector                                                                           4
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SEAWEED IN INDONESIA
Seaweed was first documented in the Indonesia archipelago (Nusantara) in 1890. As an industry, it only started to
flourish in the 1980s. Below (Figure 1) is an overview of its history (Zamroni and Salim, 2015; news from industry.co.id,
2017; Qing, 2018):

                                           Figure 1. Overview of Indonesia’s seaweed development

                                                        1899
   Sibolga Marine Expedition (1899 - 1990) led by Max
      Weber and Anna Weber-von-Bosse identified 782
                                                                       1940
                  types of seaweed in the archipelago.
                                                                       Seaweed trade begins in Makassar.
                                                        1967
         The first seaweed symposium held on seaweed
     cultivated in Indonesia (Thousand Islands District).
      In the same year, Spinosum was first cultivated in               1968
                               Tikus Isalnd, Jakarta Bay.              Seaweed categorised as Eucheuma, Gracilaria,
                                                                       Gelidium, Hypnea, and Sargassum by the Food and
                                                       1974            Agriculture Organisation (FAO).
             Cotton ii type seaweed originating from the
                  Philippines is cultivated in Indonesia.              1975
                                                                       LIPI, the Indonesian Institute of Sciences, a governmental
                                                                       authority for science and research in Indonesia, begins
                                                                       a cultivation project in Samaringga and Rio Island
                                                       1981
                                                                       (Sulawesi). The project fails and is stopped.
   Indonesia makes exports 81 tons of dried seaweed.

                                                                       1986
                                                                       Experiment for Cottonii cultivation is conducted in Bali. It
                                                       1994            results in good yield the following year.
    Indonesian Seaweed Industry Association (AP-BIRI/
     Asosiasi Pengusaha Budidaya dan Industri Rumput
                                                                       2006
       Laut Indonesia, office in BPPT, Jakarta) conducts
                            seaweed symposium in Bali.                 Indonesian Seaweed Commission formed by Ministry of
                                                                       Marine Affairs and Fisheries Decree (now inactive).
                                                2014 - 2019
 President Jokowi makes seaweed cultivation a priority.
   The Ministry of Maritime Affairs and Fisheries (KKP)
                                                                       2019
    responsible for improving the welfare of Indonesian
                                  coastal communities.                 President issues Regulation (No. 33/2019) on the
                                                                       Roadmap for Development of National Seaweed Industry
                                                                       in 2018-2021

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NOT JUST SUSHI
Seaweed is a marine plant that occurs in salt and                                 A 2016 report from the World Bank estimates that the
freshwater. It has no roots, no stems and no leaves. There                        annual global seaweed production could reach 500 million
are four colours: blue algae (Cyanophyceae), green algae                          dry tons by 2050 if the market can increase its harvest
(Chlorophyceae), red algae (Rhodophyceae), and brown                              14% per year. Reaching 500 million would boost the
algae (Phaeophyceae). All four types of seaweed are in                            world’s food supply by 10% - from the current level - create
Indonesia, with red seaweed the most found in Indonesian                          50 million direct jobs in the process and, as a biofuel,
waters.                                                                           replace about 1.5% of the fossil fuels used to run vehicles
                                                                                  (World Bank, 2016).
Though seaweed is harvested around the world, eight
countries in Asia produce a staggering 99%. China and                             Seaweed is the most significant contributor to Indonesia’s
Indonesia are, by far, the most significant producers.                            total aquaculture production. It is also a growing economic
According to the Food and Agriculture Organisation,                               driver. Up to 80% of seaweed exports are in the form of low
China’s holds a 47% share of the total production of 30.05                        value-add dried raw materials sent to China, South Korea
million tons, while Indonesia’s share is 38%. But up to                           and Vietnam.
80% of seaweed exports are in the form of low value-add                           Seaweed is a versatile product. It is in fertilisers, food
- dried raw materials - sent to China, South Korea and                            additives and animal feed ingredients, or extracted
Vietnam.                                                                          for carbohydrates such as agar or Carrageens. Recent
Indonesia’s seaweed production increased by almost                                developments in bio-refining are turning seaweed into
three times between 2010 and 2015 (see Figure 3). Its                             biofuels, chemicals, cosmetics and pharmaceuticals.
rapid growth is due to the development and cultivation of                         Australia’s national laboratory, CSIRO, is even looking at a
Kappaphycus alvarezii and Eucheuma spp. - these are the                           way to feed seaweed to cattle to reduce greenhouse gas
primary raw materials for carrageenan extraction, used                            emissions from Australia’s $17 billion livestock sector.
to thicken, emulsify, and preserve foods and beverages                            Indonesia’s start-up, Indonesia Evoware, has invented cups
(Suadi and Eiichi Kusano, 2019).                                                  and food containers made from farmed seaweed as an
                                                                                  alternative to plastics. The company also designed food
                                                                                  wrappings and sachets for products such as instant coffee
                                                                                  or flavouring for noodles to dissolve and eaten.

                                                            Figure 3. Indonesia seaweed production
                           Production (thousand tons)

                                                        Source: Food and Agriculture Organisation (2018)

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As an aquaculture sector, seaweed employs approximately                     SEAWEED PROCESSING
3.3 million workers (Packard Report, 2018). It does not
                                                                            Seaweed processing is in three stages: i) cultivation; ii)
need significant capital investments nor sophisticated
                                                                            post-harvest processing and iii) collection, distribution and
technology. Its harvest age is short, between 1.5 to two
                                                                            downstream processing into industrial products.
months, making cultivation a more reliable source of
income for fishermen and farmers (Cumming V, 2016).                         Harvesting takes place every 45-60 days or about four
                                                                            times a year. Cultivation techniques involve ropes and
Sixty-five per cent of total seaweed production is
                                                                            nets. But, bringing seaweed to land is labour intensive and
consumed. While edible seaweed is a nutritious food
                                                                            can be a costly aspect of sea farming.
source with high fibre, carbohydrates, proteins, minerals
and low fat, yet Indonesia consumes only 1%, in contrast                    Once it is onshore, seaweed is washed and impurities
to Japan’s 20%. About 15% is hydrocolloid ingredients,                      removed. Fouling, fauna, tying strings and a variety of
and 20% turned into fertiliser, paper and biofuel. (Dahuri,                 other contaminants are removed by hand, as are unwanted
2011)                                                                       and damaged parts. Once washed, the product is then
                                                                            ready for consumption, processing or packaging for storage
Seaweed is also turned downstream into high value-added
                                                                            (See Radulovich, R. et al. 2015).
products. Carrageenan, for instance, is a strong binder
for food proteins. It’s gelling, thickening, and stabilising                Below (Figure 5) is an example of seaweed cultivation,
properties applies in the food industry, especially dairy                   processing and interactions between seaweed farmers
and meat products. Carrageenan is also a vegetarian and                     and other actors (Zamroni & Yamao, 2012).
vegan alternative - used to replace gelatin in confectionery.
Alginate, on the other hand, is a marine biopolymer used                     Figure 5. The process of seaweed farming and interactions between
                                                                             seaweed farmers and other actors
to thicken solutions, to make gels, and to form films and
several industrial applications. The textile industry uses                                       Middlemen (punggawa)
it as thickeners for the paste containing dye (Babel et al.

                                                                                                                                        Lending process
2015). The food and beverage industry uses Alginate in ice
                                                                                             Lending                   Direct
creams and sauces (Kim, 2012).                                                                money                    application

Figure 4 provides an overview of the three post-harvesting
processing pathways of seaweed - from pharmaceutical                                             Seaweed farmers (sawi)

grade to industrial and food-grade products.

Figure 4. Pathways of seaweed post-harvesting processing                                                Planting the
                                             Pharmacy Grade                                              seaweed
                                                                                                                                        Production

                                             Articifical dental material;
                                             shampoo; toothpast;
                                             soap; pharmacy; etc.                                       Harvesting

Glacillaria sp.        Jelly                 Industrial Grade
                                                                                                                                        process
                                                                                                                                        Selling

Eucheuma sp.           Carrageenan           Fish feed; drilling; paint;
                                                                                                       Dried seaweed
                                             printing textile; paper;
Sargasum sp.           Alginate              ceramics; etc.

                                             Food Grade                      Source: Zamroni and Yamao (2012)

                                             Soft drink; ice cream;
                                             chocolate milk; bread; jam;
                                             etc.

Level 1                Level 2               Level 3

Translated from Zamroni and Ernawaty, 2015

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SEAWEED SUPPLY CHAIN
Indonesia’s seaweed supply chain is a vertical                 information on sharp price fluctuations on the market or
collaboration. It involves farmers, traders, manufacturers     margins in the value chain. If farmers face cash shortages,
and exporters. (Mulyati, H. & Geldermann, J., 2017). A         they sell it even when crops have not matured.
2019 report produced by the Centre for the Promotion of
                                                               iii) Collectors, traders and cooperatives exist in different
Imports from Developing Countries (CBI) maps in detail the
                                                               sizes. Smaller collectors often operate in the same
five important actors in Indonesia’s seaweed value chain:
                                                               village as farmers. Often, collectors are also leading
a) input suppliers; b) seaweed farmers; c) collectors,
                                                               or large farmers. These collectors finance farmers by
traders and cooperatives; d) exporting traders; and e)
                                                               purchasing the necessary inputs such as lines and
processors. (CBI, 2019) The section below outlines the
                                                               seedlings. In return, they get all the harvest. These types of
value chain based on the CBI report. (Figure 6)
                                                               arrangement make farmers dependent on collectors.

Figure 6. Seaweed value chain players
                                                               District traders often work with traders. They arrange
                                                               transport from collectors to warehouses where the quality,
                           Input suppliers                     moisture and impurities contents are checked, packed and
                                                               delivered to exporters or local processors.

                              Farmers                          Cooperatives are also involved in seaweed collection,
                                                               drying and trading. Cooperatives engage in financial loans,
                                                               technical help, supplying input to members, selling to
                  Collectors, Traders, Cooperatives
                                                               traders or exporters and local processors. Kospermindo is
                                                               an example of a cooperative that operates in 11 districts in
                           Export traders                      Sulawesi.
                                                               iv) Export traders supply to foreign markets and domestic
                             Processors                        processors. About 100 exporting traders are operating
                                                               in Indonesia. They tend to use different models to source
                                                               seaweed. Some source from five to ten district traders,
i) Input suppliers involve seaweed collectors and local
                                                               while others work with collectors and have up to 200
government agencies. Both play a role in supporting
                                                               suppliers. Traders source seaweed from different areas to
farmers with farming inputs such as lines, ties, buoys,
                                                               ensure that there is an ongoing supply based on seasonal
anchors and seedlings. Collectors often finance such
                                                               or weather variations. Exporters buy dried seaweed based
inputs, while local government agencies often assist with
                                                               on spot purchasing orders from China or buyers in other
seedlings.
                                                               parts of the world. Based on these orders, they give short-
ii) Seaweed farmers are usually smallholders from coastal      term contracts to suppliers to deliver specific amounts, at
communities. A farmer tends to have other sources of           a certain quality in one or two months at a particular price.
income, outside the seaweed growing season. Some               Prices change every week, based on rates provided by
seaweed farmers form legal entities, such as cooperatives,     buyers in China.
or informal farming groups. Farmers sell their seaweed to
collectors in cash-based transactions. The sale price at the
farm level is set by local collectors, who in turn get their
prices from district traders or export traders. Farmers lack

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v) Processors - Many processors operate with government                         No processor operates at full capacity. Some use as little
support and are considered uncompetitive. In 2007, there                        as 30% to 40% of their productive capacity. Low capacity is
were an estimated 150 seaweed processing companies in                           most likely due to a lack of access to seaweed or a lack of
Indonesia, with a majority located in East Java. There are                      market access (CBI, 2019).
at least three types of processing companies:
                                                                                Processors face three challenges—first, the need to
Highly effective companies with modern technology and                           upgrade technology. About 60% of seaweed companies
good connections to the market such as Java Biocolloid for                      only have access to outdated machinery. Second, the need
carrageenan and AgarIndo for agar-agar.                                         to improve human resources. Sixty per cent of companies
                                                                                interviewed pointed to the lack of staff experience as an
Companies that have developed slowly and face issues
                                                                                obstacle. The third challenge is the need to improve quality
in access to finance, human resources, technology and
                                                                                assurance. About 40% of the companies interviewed
markets;
                                                                                indicated difficulties to ensure stability in quality and
Struggling companies that face challenges to remain                             microbiology. (CBI, 2019).
active in the market. Some seaweed factories in eastern
                                                                                Figure 7 shows a typical seaweed supply chain model in
Indonesia are government-owned and generally not well
                                                                                South Sulawesi. The leading players in the business are
managed.
                                                                                farmers, collectors, processors (companies), and buyers.

Figure 7. Seaweed supply chain model in Makassar, South Sulawesi

  Bantaeng       Palopo Wajo Bone        Mamuju          Bau-Bau
  (Farmer)           (Farmer)            (Farmer)        (Farmer)

                                                                                                    Makassar    Surabaya     Jakarta-Bogor

                          Sulawesi Farmer
                                                                                                                Domestic
                               (40%)
                                                                                                                 (20%)

                                                                 RAPID
                          Seaweed Farmer                    (Processing Unit)               Buyer
                           (Aquaculturist)                  70% CT, 30% SP

                                                                                                                 Export
                                                                                                                 (80%)
                        Out of Sulawesi Farmer
                                 (60%)
                                                                                                 Philippines     China          Others
                                                                                                   (70%)         (10%)        (European)

   Nunukan, Kalimantan Farmer                Tual, Maluku Farmer
             (70%)                                  (30%)

Source: Mulyati, H. & Geldermann, J., 2017

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To sustain the supply of dried seaweed, the processors                  Both internal and external risks can threaten supply chains
collaborate with producers (seaweed farmers) on technical               (Mulyati, H. & Geldermann, J., 2017). Internal hazards
assistance, seaweed farmers’ training, and financial                    include coordination problems within the supply chain,
capital support. Seaweed farmers are, however, not well                 which occur in processing and manufacturing. External
organised. As such, there are opportunities to strengthen               risks are risks outside of companies and supply chains,
collective-based seaweed production to fulfil the need                  which include financial, policy and infrastructure risks.
for standardised seaweed products from farmers and to                   Figure 8 maps the sources of seaweed supply chain risk.
facilitate empowerment and cooperation (Suadi and E.
Kusano 2019).

Figure 8. The sources of seaweed supply chain risk

                                                                                               P.1 Failure in chemicals mixing
                                                                                               P.2 Low quantity yields
                                                                               Process         P.3 Machine breakdowns
                                              Internal risks to                                P.4 Low quality products
                                                  the firm                                     C.1 Inadequate safety stock
                                                                                               C.2 Inappropriate production scheduling
                                                                               Control         C.3 Lack of collaborative planning between the company
                                                                                               and seaweed suppliers
                      Internal risks
                                                                                               S.1 Fluctuation of raw dried seaweed price
                                                                                               S.2 Scarcity of raw dried seaweed
                                                                               Supply          S.3 Uncertain of seaweed yields
                                               External risks to the                           S.4 Low quality of raw dried seaweed
                                             firm, but internal risks                          S.5 Failures in raw dried seaweed delivery
                                                                                               S.6 Distance between seaweed farming and the companies is far
  The sources of a                             to the supply chain
                                                                                               D.1 Demand uncertainty
  seaweed supply                                                               Demand          D.2 Product price volatility
     chain risk                                                                                D. 3 Customers switching

                                                                                               E.1 Variability of government regulatory
                                                                           Policy, finance &   E.2 Exchange rate volatility
                                                                                               E.3 Poor infrastructure
                                                                            infrastructure     E.4 Poor power quality of electric supply
                                                                                               E.5 Scarcity of fresh water

                                                                                               E.6 Low community acceptance
                      External risks                                            Social         E.7 Lack of employment opportunities

                                                                                               E.8 Industrial seaweed wastewater negatively impacts to the environment
                                                                            Environment        E.9 Solid seaweed waste negatively impacts the environment
                                                                                               E.10 Natural disasters: floods & earthquakes

Source: Mulyati, H. & Geldermann, J., 2017

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SEAWEED AS A NATIONAL PRIORITY
Indonesia has ambitious plans to boost its seaweed           – Key challenges to fulfilling the roadmap:
sector. In 2015, President Joko “Jokowi” Widodo                     – Delineate the allocation of space for seaweed
announced a Roadmap to make Indonesia a world                         cultivation within the various spatial related
leader in carrageenan and agar-agar (jelly) industries by             plans;
2021. President Jokowi called for the development of the
industry to process all seaweed. “We have to develop the            – Availability of quality and quantity of human
downstream industry to be able to export finished goods.              resources for cultivation and processing;
We must not continue to be a supplier of raw material”, he          – Application of Indonesian National Standards
said. (Republika Online, 2015)                                        in both cultivation and processing stages;
The plan focused on three particular priorities: double             – Availability and supply of quality produce for
seaweed production from 10.6 million tons to 19.5 million             processing on a sustainable basis;
tons by 2019; process half of it domestically by 2020;
                                                                    – The fluctuation of prices for raw seaweed;
and reach a target of seaweed mix (5% content) in the
feedstock for fisheries and animal farms (KKP, 2015).               – Expensive transport and logistics costs;

Some critical points identified in the national seaweed             – Sub-optimal rates of utilisation of processing
roadmap include:                                                      facilities;

 – Five of Sulawesi’s six provinces (all except West                – Insufficient supporting infrastructure (roads,
   Sulawesi) offer prospects for two essential groups of              clean water, electricity and gas);
   seaweed species (Eucheuma and Gracilaria)
                                                                    – Government fiscal policies that are not
 – Key factors in fulfilling the roadmap:                             internationally competitive;

         – Improving the sub-optimal practices of                   – Upstream and downstream databases that are
           seaweed cultivation;                                       not synergistic;

         – Optimising the use of land/seaways for                   – Limited market access for seaweed producers
           seaweed cultivation;                                       and processors.

         – Engaging the ASEAN Economic Community as a
           means to boost efficiency and competitiveness;
         – Maximising the use of domestic seaweed
           produce for downstream production;
         – Raising competitiveness of domestic seaweed
           manufacturing sector; and
         – Increasing the pace of investment in seaweed
           manufacturing sector.

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Figure 9 sets out Indonesia’s seaweed SWOT (Strengths, Weaknesses, Opportunities, and Threats)
analysis - Perpres 33/2019.

Figure 9. SWOT Analysis of seaweed development roadmap, modified from Perpres RI No.33/2019

        STRENGTHS                            WEAKNESSES                           OPPORTUNITIES                            THREATS
– Potential development areas         – Untapped seaweed potential          – Potential areas in 23 provinces      – Competitors from other
  about 1.5 million ha.                 areas                               – Potential national and global          countries
– Supportive tropical climate         – Low productvity, quality and          markets for downstream               – Environmental degradation
– 782 species                           industry                              products                               due to pollution
– Potential big markets for           – Unsynchronished seaweed             – Business and employment              – Pests and diseases
  downstream products, about            development policy                    opportunities                        – Fluctuating global price
  500 types                           – Low quality of human resources      – Healthier life due to high fibre     – Dependency on imports for
– Abundant human resources              (in seaweed cultivation and           intake from seaweed                    some chemicals utilised in
– Supportive government policies        down streaming technology)          – Diversification of seaweed             seaweed industries
– Seaweed technological mastery       – Business institutions are weak        based-businesses
                                        in accessing information and        – Low cost of cultivation with short
                                        capital                               harvest time (45 days)
                                      – Undeveloped zonation system in      – Support the growth of other
                                        come provinces causing no legal       industries
                                        certainty to businesses
                                      – Information system and
                                        databases lack of synergy

The government has identified several constraints in                      There are already several strategies underway to develop
developing the seaweed industry.                                          seaweed industry, including:
1) lack of coordination between central government,                        – A focus on increasing productivity and quality of
regional, business and communities.                                          seaweed (Hikmah, 2015).
2) no seaweed processing companies in eastern Indonesia                    – The development of the processing industry for
- all companies are located in Java - even though most                       semi-refined seaweed near the centres of seaweed
seaweed production is in the east. According to the Centre                   production (Hikmah, 2015).
of Excellence for Development and Utilisation of Seaweed
                                                                           – The development of consumable seaweed businesses
at Hasanuddin University, the 14 Indonesian companies
                                                                             from micro-scale into industrial scale. Indonesia
producing agar are all located in Java’s big cities: Medan,
                                                                             is investing significant effort into cultivating more
Tangerang, Sidoarjo, Surabaya and Malang, and none in
                                                                             seaweed and expanding its global market. But this
South Sulawesi.
                                                                             effort is not matched by the development of adequate
3) the poor logistics and supply chain system is a                           post-harvest processing and downstream industries.
constraint, as it fails to move seaweed from farms to ports
                                                                           – A digital platform called Tropical Seaweed Innovation
and across islands in a timely, efficient and cost-effective
                                                                             Network (TSIN, https://www.seaweednetwork.id/) that
way.
                                                                             was created to connect all seaweed stakeholders. The
4) the lack of innovation in the seaweed value chain                         platform facilitates a network, promotes cooperation
is holding back the sector (Mongabay, March 2019).                           and synergy, and encourages innovation.
Seaweed development is lacking adequate investment in
                                                                           – The initiation of a number of activities that involve
science and downstream innovation.
                                                                             government (central and regional), academics and the
                                                                             private sector coming together to collaborate. (Perpres
                                                                             No. 33/2019). The Perpres is expected to be a guide,
                                                                             both in increasing the production of seaweed value-
                                                                             added products and more broadly in the development
                                                                             of a reliable, competitive and sustainable seaweed
                                                                             industry, so that Indonesia’s large seaweed potential
                                                                             can be further expanded.

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ACTORS IN THE SEAWEED INDUSTRY
The seaweed industry is managed directly by the central government through the Ministry of Marine Affairs and Fisheries
(Kementerian Kelautan dan Perikanan/KKP) - under the Directorate General of Aquaculture (Direktur Jenderal Perikanan
Budidaya) and Directorate General of Marine and Fisheries Product Competitiveness (Direktur Jenderal Penguatan Daya
Saing Produk Kelautan dan Perikanan).
Below is a list of key seaweed actors in Indonesia:

1. Government                                                 – Balitang KKP (The Centre for Marine and Fisheries
                                                                Research and Development/Badan Penelitian dan
 – Ministry of Marine Affairs and Fisheries (KKP)
                                                                Pengembangan Kelautan dan Perikanan) which
 – Coordinating Ministry for Marine Affairs (Kemenkomar)        operated the following centres:
 – Ministry of Finance                                        – Centre for Research and Development of Marine
 – Ministry of Industry                                         and Coastal Resources (Pusat Penelitian dan
                                                                Pengembangan Sumber Daya Laut dan Pesisir);
 – Ministry of Trade
                                                              – Centre for Research and Development of Marine and
 – Supporting Ministries and Agencies
                                                                Fisheries Products and Biotechnology Competitiveness
 – Ministry of Cooperatives, Small and Medium                   (Pusat Penelitian dan Pengembangan Daya Saing
   Enterprises                                                  Produk dan Bioteknologi Kelautan dan Perikanan);

 – Ministry of Villages and Underdeveloped Regional           – Centre for Marine Socio-Economic and Fisheries
   Development                                                  Research (Pusat Penelitian Sosial Ekonomi Kelautan
                                                                dan Perikanan);
 – Investment and Coordination Board
                                                              – LIPI (Indonesian Institute of Science) - Seaweed
2. Business and Business Associations
                                                                research in LIPI is undertaken by the Centre
 – ARLI (Indonesian Seaweed Association, Asosiasi               for Oceanography Research (Pusat Penelitian
   Rumput Laut Indonesia,led by Safari Azis                     Oseanografi), which also has a Centre of Excellence
 – ASTRULI (Indonesian Seaweed Industry Association/            on Marine Bioprospecting. Seaweed downstreaming
   Asosiasi Industri Rumput Laut Indonesia; led by Mc           research development is also conducted by LIPI as a
   Donny W Nagasan)                                             potential cure for cancer.

 – ASPERLI (Seaweed Farmers Association/Asosiasi              – Universities - Seaweed experts are scattered in
   Petani Rumput Laut; led by Arman Arfah)                      Indonesian universities, especially those that are
                                                                autonomous state universities (PTNBH). It is worth
 – MAI (Indonesian Aquaculture Society/Masyarakat               noting that Ristekdikti has established the Centre of
   Akuakultur Indonesia, led by Safari Azis)                    Excellence Seaweed at Hasanuddin University (PUI-
 – Celebes Seaweed Group (CSG, local level in South             P2RL) in 2016, the only one in Indonesia. However,
   Sulawesi; led by Mursalim)                                   there seems to be no clear divisions of focus among
                                                                the various institutions involved in seaweed research.
3. Research
                                                             In 2006, the Minister of Marine and Fisheries established
 – BPPT (Agency for the Assessment and Application
                                                             the Indonesian Seaweed Commission (Komisi Rumput
   of Technology/Badan Pengkajian dan Penerapan
                                                             Laut Indonesia) – consisting of various ministries. The
   Teknologi) - BPPT has its own seaweed research focus.
                                                             commission no longer exists with its last news dated back
   Among them is the development of seaweed-based
                                                             in February 2018.
   capsules by Pusat Teknologi Agroindustri (Agro-
   Industry Technology Centre)

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NATIONAL SEAWEED RESEARCH &                                   – Research and development of new types (species and/
DEVELOPMENT                                                     or varieties) of seaweed for herbal products.

The National Seaweed Development Programs for 2018-           – Innovative development through technology transfer of
2021 as listed in Perpres No. 33/2019 are as follows:           semi-refined products and final products and seaweed
                                                                markets focuses on:
 1. Development of seaweed cultivation and post-harvest
    in the cultivation development area.                      – Research into the development of innovation through
                                                                technology transfer and diversification of semi-refined
 2. Development and organisation of seaweed-based
                                                                (intermediate) products and seaweed end products.
    processing industries.
                                                              – Research on management and utilization of seaweed
 3. Market development of raw materials, semi-finished
                                                                industry waste for fertilizer products and other
    products (by-products) and final products of seaweed
                                                                products.
    both at domestic and international levels.
                                                             The study of raw materials, semi-finished products, and
 4. Research and development of new seaweed
                                                             seaweed-based final products.
    (species and/or variety), cultivation and technology
    innovation of semi-finished and final products and the   CONCLUSION
    development of domestic and global markets.
                                                             Seaweed can significantly boost Indonesia’s economy
The National Seaweed Research Programs 2018-2021             and markedly improve the welfare and livelihood of its
(Perpres No. 33/2019) focus on two aspects: cultivation of   people, especially in coastal and island communities. With
new species or new varieties and innovations in seaweed      more investment into the sector, huge opportunities will
downstreaming.                                               flow from the development of a healthy, sustainable and
Utilisation and development of new seaweed species           globally competitive industry.
(species and/or varieties) cultivation focuses on:
 – Research and development of seaweed bioprospecting
   types and procedures for utilisation (Sargassum sp.,
   Ulva sp., and Gelidium sp.).
 – Increasing research and development of seaweed
   cultivation technology, including quality seeds,
   production, post-harvest, and seaweed marketing.
 – Research on the development of tissue culture
   seedlings and supervision of tissue culture
   laboratories in each region.
 – Research on new species and/or varieties to pilot the
   development of aquaculture and diversification of
   processed seaweed products.

Seaweed nation: Indonesia’s new growth sector                                                                          14
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ABBREVIATIONS AND ACRONYMS

ASEAN: Association of Southeast Asian Nations
ARLI: Indonesian Seaweed Association (Asosiasi Rumput Laut Indonesia)
ASPERLI: Seaweed Farmers Association (Asosiasi Petani Rumput Laut)
ASTRULI: Indonesian Seaweed Industry Association (Asosiasi Industri Rumput Laut Indonesia)
Balitang KKP: Centre for Marine and Fisheries Research and Development (Badan Penelitian dan
Pengembangan Kelautan dan Perikanan)
BPPT: Agency for the Assessment and Application of Technology (Badan Pengkajian dan Penerapan
Teknologi)
CSG: Celebes Seaweed Group
CSIRO: Commonwealth Scientific and Industrial Research Organisation
CBI: Centre for the Promotion of Imports from Developing Countries
DKP: Office of Marine Affairs and Fisheries (Dinas Kelautan dan Perikanan)
EIBN: EU-Indonesian Business Network
FAO: Food and Agriculture OrganisationIDR: Indonesian Rupiah
Kemenkomar: Coordinating Ministry for Marine Affairs (Kementerian Koordinator Bidang
Kemaritiman dan Investasi)
KKP: Ministry of Maritime Affairs and Fisheries (Kementerian Kelautan dan Perikanan)
LIPI: Indonesian Institute of Sciences (Lembaga Ilmu Pengetahuan Indonesia) MAI: Indonesian
Aquaculture Society (Masyarakat Akuakultur Indonesia)
Pangkep: Pangkejene dan Kepulauan district
Perpres: Presidential Regulation (Peraturan President)
PTNBH: Penguruan Tinggi Negeri Badan Hukum (autonous university)
PUI-P2RL: Centre of Excellence Seaweed at Hasanuddin University (Pusat Unggulan Ipteks –
Pengembangan dan Pemanfaatan Rumput Laut)
RENJA: Work Plan (Rencana Kerja)
RENSTRA: Strategic Plan (Rencana Strategis)
SRG: Warehouse Receipt System (Sistem Resi Gudang)
TSIN: Tropical Seaweed Innovation Network
UNIDO: United Nations Industrial Development Organization

Seaweed nation: Indonesia’s new growth sector                                                   15
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Seaweed nation: Indonesia’s new growth sector                                                                           18
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