Seaweed Nation: Indonesia’S New Growth Sector

pair.australiaindonesiacentre.org Backgrounder April 2020 No. 02/2020

Seaweed Nation: Indonesia’s new growth sector

Connectivity, People and Place

Supported by:

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PRINCIPAL PARTNERS

POLICY PARTNERS

South Sulawesi Ministry of Transportation Provincial Government Republic of Indonesia

MEDIA PARTNER

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Authors: Hasnawati Saleh and Eugene Sebastian

Editorial: Marlene Millott and Tim Fitzgerald

Design: Jesse Kartomi Thomas

March 2020

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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)

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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

Seaweed nation: Indonesia’s new growth sector 5 (Suadi andEiichi(Suadi Kusano, 2019). to thicken, emulsify, foods andpreserve andbeverages raw materialsprimary for carrageenan extraction, used Kappaphycus alvarezii andEucheuma spp. are -these the rapid growth isdueto the development andcultivation of Its three Figure between times 2010and2015(see 3). Indonesia’s seaweed production increased by almost Vietnam. - dried raw materials -sentto China, South Korea and 80% ofseaweed are inthe form exports oflow value-add million tons, whileIndonesia’s share Butupto is38%. China’s holdsa47%share ofthe total production of30.05 According to the Food andAgriculture Organisation, are,Indonesia by far, the mostsignificant producers. producecountries inAsia Chinaand astaggering 99%. Though seaweed isharvested around the world, eight waters. Indonesia, with red seaweed the mostfound inIndonesian ofseaweed Allfouralgae (Phaeophyceae). types are in andbrown red(Chlorophyceae), algae (Rhodophyceae), green algae are bluealgae (Cyanophyceae), four colours: freshwater. Ithas noroots, nostems andnoleaves. There Seaweed isamarine plantthat and occurs insalt Seaweed nation: Indonesia’s new growth sector NOT JUST SUSHI

Production (thousand tons) Source: Food andAgriculture Organisation (2018) Figure 3. seaweed Indonesia production and Vietnam. dried raw materialsvalue-add sentto China, South Korea driver. Up to 80%ofseaweed are inthe form exports oflow total aquaculture production. Itisalsoagrowing economic Seaweed isthe mostsignificant contributor to Indonesia’s (World 2016). Bank, replace about1.5% ofthe fossil fuels usedto run vehicles 50 milliondirect and, inthe jobs process as abiofuel, world’s food supply by 10%-from the current level -create 14% peryear. Reaching 500millionwould boostthe tons bydry 2050ifthe market increase can harvest its annual globalseaweed production couldreach 500million from theA 2016report World Bankestimates that the or flavouring for noodles to dissolve and eaten. wrappings andsachets for such products coffee as instant alternative to The company plastics. food alsodesigned and food madefrom containers farmed seaweed as an Indonesia’s Evoware, Indonesia start-up, has invented cups from Australia’semissions $17billion livestock sector. way to feed seaweed to to cattle reduce greenhouse gas Australia’s national laboratory, CSIRO, iseven looking at a biofuels, andpharmaceuticals. cosmetics chemicals, developments inbio-refining are turning seaweed into for carbohydrates such as agar orCarrageens. Recent additives andanimalfeed ingredients, orextracted Seaweed isaversatile food product. Itisinfertilisers,

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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 to thicken solutions, to make gels, and to form films and seaweed farmers and other actors 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 Production Pharmacy Grade seaweed

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

Glacillaria sp. Jelly Industrial Grade process Selling Fish feed; drilling; paint; Eucheuma sp. Carrageenan 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. District traders often work with traders. They arrange Figure 6. Seaweed value chain players 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 seaweed supply D.1 Demand uncertainty 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

External risks Social E.6 Low community acceptance 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.

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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

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Harrison-Dunn, Annie-Rose, ‘What Will it Take to Make Indonesian Seaweed Competitive?’, foodnavigator.com, 2 June 2015, available at: https://www.foodnavigator.com/Article/2015/06/03/What-will-it-take-to-make-Indonesian-seaweed- competitive. Hikmah, ‘Strategi Pengembangan Industri Pengolahan Komoditas Rumput Laut E. Cotonii Untuk Peningkatan Nilai Tambah Di Sentra Kawasan Industrialisasi’ Journal Kebijakan Sosek KP, Vol. 5 No. 1, 2015. Kim, Se-Kwon (Ed), Handbook of Marine Macroalgae: Biotechnology and Applied Phycology. Hoboken, NJ: John Wiley & Sons, 2012. KKP, 2015. Tahun 2019, KKP Targetkan Produksi Rumput Laut 19,5 Juta Ton November 11, 2015 https://news.kkp. go.id/index.php/tahun-2019-kkp-targetkan-produksi-rumput-laut-195-juta-ton/ Marbun, Julkifli, ‘Jokowi wants to boost development of seaweed processing industry’, Republika Online, 13 April 2015, available at: https://republika.co.id/berita/nmqq5y/jokowi-wants-to-boost-development-of-seaweed-processing-industry. Muin, Asrhawi, ‘Rumput Laut Jadi Komoditi Andalan di Sektor Ekspor Sulsel’, Sulsetsatu.com, 20 Juni 2018, available at: https://www.sulselsatu.com/2018/06/20/makassar/rumput-laut-jadi-komoditi-andalan-di-sektor-ekspor-sulsel.html. Mulyati, Heti and Geldermann, Jutta, ‘Managing Risks in the Indonesia Seaweed Supply Chain, Clean Technologies and Environment Policy, Vol 19, 2017, pp. 175-189, available at: https://link.springer.com/article/10.1007/s10098-016- 1219-7 Presidential Regulation No 33/2019, ‘Road Map for Development of National Seaweed Industry In 2018-2021’, available at: https://sipuu.setkab.go.id/PUUdoc/175858/Perpres_Nomor_33_Tahun_2019.pdf. Qing, Yimin. Bioactive Seaweeds for Food Applications: Natural Ingredients for Healthy Diets, Academic Press, London, 2018. Radulovich, Ricardo; Neori, Amir; Valderrama, Diego; Reddy, C.R.K.; Cronin, Holly; Forster, John, ‘Farming of Seaweeds’, in Tiwari, Brijesh K and Troy, Declan J., Seaweed Sustainability, Academic Press, pp. 27-59, available at: https://www. sciencedirect.com/book/9780124186972/seaweed-sustainability#book-info. Ridwan, ‘Sejarah Budidaya Rumput Laut di Indonesia’, Industry.co.id, 11 January 2017 available at: https://www. industry.co.id/read/2528/sejarah-budidaya-rumput-laut-di-indonesia. Sedayu, Bakti Berlyanto, ‘Seaweed, Indonesia’s answer to the global plastic crisis’, The Conversation, 5 June 2018, available at: https://www.thejakartapost.com/academia/2018/06/05/seaweed-indonesias-answer-to-the-global-plastic- crisis.html. Statistics Indonesia, ‘Ekspor Rumput Laut dan Ganggang Lainnya Menurut Negara Tujuan Utama, 2012-2018’, Badan Pusat Statistik, available at: https://www.bps.go.id/statictable/2019/02/25/2025/ekspor-rumput-laut-dan-ganggang- lainnya-menurut-negara-tujuan-utama-2012-2018.html, accessed 17 Dec 2019.

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