Indonesia’s Seaweed: The Ocean’s Next Big Investment Opportunity!

The Ministry of Marine Affairs and Fisheries (KKP) has designated seaweed as one of the flagship commodities in the aquaculture sector. This policy aligns with the blue economy program, which emphasizes sustainability and the added value of Indonesian fishery products. In addition to seaweed, KKP has also targeted four other key commodities: shrimp, tilapia, crab, and lobster.

“Minister of Marine Affairs and Fisheries, Sakti Wahyu Trenggono, has directed that these five commodities become the backbone of the national fisheries industry,” said Nono Hartanto, Director of Seaweed at the Directorate General of Aquaculture, during a Focus Group Discussion (FGD) titled Seaweed Upstream Development in Jakarta on Monday, February 3, 2025.

According to Nono Hartanto, global demand for seaweed continues to rise and is projected to reach 40–43 million tons by 2029. “Data from Seaweed Forecast and the World Bank indicate that the need for seaweed will keep growing, especially in the ready-to-eat food category,” he stated.

He hopes this positive trend will drive increased production and exports of Indonesian seaweed. So, what are the profit prospects and challenges of seaweed cultivation? Here are insights from several experts:

Profit Prospects and Challenges of Seaweed Cultivation

Seaweed farming is considered highly profitable at various levels, from cultivation to industrial processing. “With carrageenan prices reaching Rp27,500 per kilogram, profit potential increases through further processing.

Industrial development and improved hygiene standards can further optimize its economic value,” said Irzal Effendi, a Lecturer in the Department of Aquaculture at the Faculty of Fisheries and Marine Sciences, Bogor Agricultural University (IPB). seaweed cultivation However, Irzal Effendi emphasized that the success of seaweed cultivation depends on selecting the right location to minimize seasonal risks and diseases. “Environmental factors, water quality, and the use of eco-friendly technology play a crucial role in productivity.

The use of information technology can help monitor seaweed growth and mortality factors. Additionally, government support in area mapping and industrial development is essential,” he added.

Biofuel Potential and Carbon Credits

Beyond its role as a food source, seaweed also holds significant potential for biofuel development and carbon credits. “Strengthening downstream processing, utilizing technology, and improving human resources can enhance efficiency and revenue in this industry.

Even challenges such as the baronan fish predator can be turned into additional economic opportunities,” said Aji Sularso, a fisheries practitioner. Meanwhile, Prof. Dr. Charlotha Irenny Tupan, an academic and carbon researcher from Pattimura University (Unpatti), highlighted the role of seagrass and mangroves in carbon storage.

“Carbon distribution occurs both above and below the substrate, including in leaves, roots, and sediments. The carbon cycle begins with CO₂ absorption through photosynthesis and is stored in biomass, the food chain, and sediments as a long-term carbon reserve,” she explained.

Policy and Infrastructure Support

Member of Commission IV of the Indonesian House of Representatives (DPR RI), Prof. Rochmin Dahuri, emphasized the importance of an environmentally based strategy in developing seaweed cultivation.

According to Rochmin Dahuri, the government needs to designate seaweed as a strategic commodity and establish processing plants in every production center. "This step will ensure price stability while increasing seaweed’s contribution to the national economy," he stated.