Indonesia-China Blue Economy Collaboration: A Future-Ready Solution for Low-Carbon Economic Growth

Jakarta, WISATA - Indonesia and the People’s Republic of China (PRC) have strengthened their strategic partnership during President Prabowo Subianto’s state visit to Beijing from November 8-11, 2024. A highlight of the visit was the signing of a Memorandum of Understanding (MoU) on blue economy cooperation, signed by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and China’s Minister of Commerce, Wang Wentao. This MoU provides a new foundation for Indonesia and China to develop a low-carbon economy and sustainable marine management.

Blue Economy as a Catalyst for National Economic Growth

The blue economy, which focuses on the sustainable use of ocean resources, is seen as a significant opportunity for Indonesia’s economy. Data from the Ministry of Marine Affairs and Fisheries indicate that Indonesia's marine sector contributes around 6.4% to the country’s GDP in 2023. Through this collaboration, the government aims to raise the marine sector’s contribution to 8% of GDP by 2029.

“The blue economy offers substantial opportunities to build an inclusive and environmentally friendly economy. With China’s technology and investment, Indonesia’s marine sector can become a major driver of national economic growth,” said Minister Airlangga.

Downstream Marine Product Development to Enhance Competitiveness

Downstream development of marine products is one of the primary focuses of this MoU. Such development not only increases the added value of marine products but also creates new job opportunities within the sector. According to BPS data, Indonesia’s fisheries sector employs more than 7 million people. By developing downstream industries such as marine biopharmaceuticals and seafood processing, the sector’s contribution to the economy is expected to grow significantly.

Development of Renewable Marine Energy

The cooperation also includes the renewable marine energy sector, covering energy sources like wind, tidal, and photovoltaic power. Marine energy holds significant potential to meet electricity needs in coastal regions and remote islands. Data from the Ministry of Energy and Mineral Resources (ESDM) indicate that Indonesia’s renewable energy potential exceeds 400 GW, much of which is located in marine areas.

Through this collaboration, both nations are committed to developing and implementing eco-friendly marine energy technology. This technology benefits not only in terms of electricity provision but also in reducing reliance on fossil fuels, contributing to carbon emission reductions.

Maritime Tourism and Marine Infrastructure

In addition to fisheries and energy, maritime tourism is another crucial sector in this MoU. Indonesia, known for its stunning seas, attracts thousands of foreign tourists each year. China is one of Indonesia’s key tourism markets, with over 2 million Chinese tourists visiting annually. Enhanced cooperation is expected to boost Indonesia's tourism industry further.

This collaboration also includes marine infrastructure development, such as docks and ports, which will enhance maritime connectivity. Improved infrastructure will strengthen the marine product supply chain and increase accessibility for tourists in coastal regions.

Advancing Green Economy through Technology and Innovation

As part of this cooperation, the two nations have agreed to accelerate the transition toward a low-carbon green economy. Green technology development, green carbon initiatives, and innovation in the marine sector are priorities within the MoU. These green technologies will help increase sustainable and eco-friendly marine management capabilities.

Minister Airlangga stated, “This collaboration not only supports national economic growth but also brings Indonesia and China closer to our shared goal of creating a greener, more sustainable environment.”

Through this MoU, both countries are committed to collaborating in the blue economy, which not only enhances economic growth but also ensures environmental sustainability.