Policy Brief: Indonesia’s Seaweed Industry as a Key Source of Sustainable Blue Growth

Between 2012 and 2022, Indonesia’s Eucheuma seaweed export revenue more than doubled, reaching USD 258.7 million. However, the average unit price remains far below some other competitor countries like Chile or Peru, pointing to a missed opportunity to capture greater value through domestic processing and stronger value chain systems. This Blue Economy Policy Brief released by UNIDO outlines how the country’s seaweed industry could significantly increase its contribution to national GDP and global markets by transitioning from raw exports to high-value, processed products.

The Blue Economy Policy Brief, released by UNIDO’s Regional Office in Indonesia in collaboration with GQSP national and international experts and partners, presents nine strategic policy goals to help reposition Indonesia from a bulk exporter to a global leader in value-added, climate-smart seaweed production.

The brief identifies core challenges, such as limited domestic processing capacity, inefficient and fragmented supply chains, and weak certification and traceability systems, while outlining actionable policy solutions. These include incentivizing investment in advanced processing technologies, promoting sustainable and climate-adaptive farming practices, and establishing national quality standards and digital traceability mechanisms.

It also highlights untapped opportunities in high-growth global markets, including bioplastics, biostimulants, and other bio-based renewable materials, where Indonesian seaweed could play a transformative role in the global blue economy.

By improving productivity, upgrading infrastructure, and fostering an enabling environment for MSMEs and smallholder farmers, Indonesia can unlock the full value of its seaweed industry and drive inclusive, resilient, and sustainable development across its coastal regions.

The Policy Brief can be viewed and downloaded here

For more information please contact Mr. Nima Bahramalian (n.bahramalian [at] unido.org)