Wakatobi, an archipelago in Southeast Sulawesi, has emerged as one of Indonesia's most significant seaweed-producing regions. In 2022, the area recorded a dry seaweed production of approximately 3,951 tons, highlighting its vital role in Indonesia’s marine economy.
Recognizing this potential, the Ministry of Marine Affairs and Fisheries has actively facilitated investments in Wakatobi’s seaweed industry, fostering an integrated ecosystem from upstream to downstream.
Government Support and Industry Development
To enhance the value chain, the government has implemented various initiatives aimed at modernizing seaweed processing. These include improved post-harvest handling, advanced drying techniques, better packaging solutions, optimized trade regulations, and enhanced infrastructure.
The ultimate goal is to produce high-quality dry seaweed that meets industry standards, thereby increasing Wakatobi’s competitiveness in the global market. Additionally, efforts are underway to attract investments in seaweed processing industries.
According to Budi Sulistiyo, Director General of Strengthening the Competitiveness of Marine and Fisheries Products (PDSPKP), Wakatobi’s vast seaweed production capacity makes it an ideal location for industrial investment.
The region boasts an available cultivation area of 5,236 hectares spread across Wangi-Wangi, Kaledupa, and Tomia islands.
Indonesia’s Global Position in the Seaweed Market
Indonesia is well-positioned to become a global leader in the seaweed industry. The country’s seaweed production reached 9.12 million tons in 2021, with exports totaling 180,600 tons, valued at USD 455.7 million by September 2022.
China remains the primary export destination, followed by South Korea, Chile, Vietnam, and France.
According to data from the Central Bureau of Statistics (BPS), Indonesia's seaweed production is spread across 23 provinces, with the top five producers being South Sulawesi, East Nusa Tenggara, North Kalimantan, Central Sulawesi, and West Nusa Tenggara. South Sulawesi leads with a production of 1.63 million tons of wet seaweed, followed by East Nusa Tenggara with 1.03 million tons.
Seaweed as Indonesia’s ‘Green Gold’
Seaweed, often referred to as the “green gold of Indonesian waters,” holds immense potential for economic diversification.
Beyond being a raw commodity, seaweed can be processed into high-value products such as animal feed, fertilizers, cosmetics, and pharmaceuticals. The increasing innovation and technological advancements in the industry offer significant opportunities for value addition and economic growth.
Catur Sarwanto, Director of Business and Investment at PDSPKP, emphasized the importance of Indonesia becoming a global champion in the seaweed industry.
With the right investments and technological advancements, Indonesia can strengthen its position in the global supply chain, creating more employment opportunities and boosting economic sustainability.
Wakatobi’s Competitive Advantages
Wakatobi is well-equipped to support a thriving seaweed industry. The region offers essential infrastructure, including stable electricity supply, clean water, road networks, and two major seaports—Panggulubelo and Wanci.
Additionally, Matohara Airport serves as a strategic access point for business and trade activities. The availability of a skilled workforce and necessary facilities makes Wakatobi a favorable destination for investors looking to expand in the seaweed sector.
The district specializes in cultivating high-quality seaweed species, particularly Eucheuma Cottonii and Eucheuma Spinosum, both of which are in high demand for various industrial applications.
Local authorities are actively promoting sustainable farming practices and improved cultivation methods to ensure long-term productivity and environmental preservation.
Future Outlook and Investment Opportunities
Despite a temporary decline in seaweed exports in 2020 due to global market fluctuations, Indonesia remains the world’s second-largest seaweed exporter.
The country’s export value saw a strong recovery in 2021, with a 20.42% year-on-year increase, reaching USD 177.99 million.
This positive growth trend underscores Indonesia’s resilience and strong market demand, particularly from China, which continues to be the largest importer of Indonesian seaweed.
With continued government support, strategic investments, and industry innovations, Wakatobi is poised to become a leading hub for sustainable seaweed production.
Strengthening partnerships between local farmers, investors, and policymakers will be crucial in optimizing the region’s potential and solidifying Indonesia’s position in the global seaweed market.