Unlocking the Blue Economy Potential of Indonesia and China: Strategic Cooperation for Sustainable Economic Growth

Jakarta, WISATA — During President Prabowo Subianto’s state visit to Beijing, China, from November 8-11, 2024, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, signed a Memorandum of Understanding (MoU) on Deepening Blue Economy Cooperation. The MoU was signed in the presence of President Prabowo and Chinese President Xi Jinping during a bilateral meeting held on the afternoon of November 9, 2024, at the Great Hall of the People in Beijing. This MoU marks a significant step in strengthening Indonesia-China cooperation, particularly in the blue economy sector, which involves sustainable utilization of marine resources.

Blue Economy: Key to Sustainable Marine Utilization

The blue economy is a central focus of this cooperation, covering sectors such as renewable marine energy, fisheries and aquaculture management, maritime tourism, innovation, and marine industrial collaboration. According to Indonesia’s Ministry of Marine Affairs and Fisheries, Indonesia’s marine sector holds an annual potential value of approximately USD 1.33 trillion, with substantial growth opportunities in fisheries and tourism. This MoU is expected to accelerate the utilization of this potential, increasing the contribution of the marine economy to Indonesia's GDP.

Minister Airlangga emphasized that this cooperation reflects the two nations' strong commitment to supporting sustainable ocean management. “Indonesia, as an archipelagic country, holds substantial marine economic potential, while China has strengths in marine technology. This collaboration is highly strategic for both nations,” he noted.

Downstream Development and Marine Biopharmaceuticals

Under the framework of the MoU, downstream development of marine products, such as seafood processing and marine biopharmaceuticals, is one of the priority sectors to be developed. This processing industry is expected to add significant value. According to BPS data, Indonesia's seafood exports in 2023 reached USD 5.8 billion, with China as one of its main markets. Through the development of downstream industries, the value of Indonesian fishery exports is projected to increase significantly over the next five years.

Collaboration in Clean Energy and Marine Infrastructure Development

In addition to fisheries, the MoU covers the development of renewable marine energy sources such as wind, tidal, and photovoltaic energy. Renewable energy from the sea is expected to meet Indonesia's energy needs, particularly for coastal areas and small islands. The Indonesian government has also set a target to increase renewable energy use to 23% by 2025.

Furthermore, this cooperation encompasses marine infrastructure development, including docks, ports, and sea transportation. As such, this collaboration addresses not only technology and innovation but also the infrastructure aspects that support the overall growth of the marine sector.

Transitioning to a Low-Carbon Green Economy

Both Indonesia and China are also committed to accelerating the transition toward a low-carbon green economy by increasing investments in green technology and promoting marine innovation. The MoU also includes the development of green carbon technology aimed at absorbing carbon emissions from the sea. According to the National Development Planning Agency (Bappenas), the marine sector contributes to absorbing up to 15% of Indonesia's total emissions, making green carbon technology a viable long-term solution for reducing emissions.

Multisectoral Collaboration to Support Economic Growth Targets

The MoU involves collaboration among various stakeholders, including regional governments, the private sector, research institutions, financial institutions, and business players. The implementation of the MoU is expected to support the national economic growth target of 8% by 2028-2029. “This multisectoral cooperation will strengthen the marine sector’s contribution to national GDP and accelerate the achievement of our economic growth targets,” Minister Airlangga said.

Through this cooperation, Indonesia’s marine sector is expected to play a larger role in the national economy and support ambitious economic growth targets. This initiative is also anticipated to create new job opportunities in the marine sector and accelerate economic development in coastal regions.