Indonesia.
BLUE INNOVATOR
Implementation Ready and Accelerating Progress
BLUE INNOVATOR
Implementation Ready and Accelerating Progress
National Snapshot.
Indonesia has made significant progress in advancing sustainable ocean development, underpinned by the implementation of a comprehensive national ocean policy and dedicated blue economy strategies.
A key highlight of this progress is the country’s commitment to blue financing, which supports ocean conservation as an integral part of its broader blue economy agenda.
Reflecting its strong policy foundation, implementation readiness, and accelerating momentum, Indonesia is profiled as a Blue Innovator, demonstrating regional leadership in building a resilient, inclusive, and sustainable ocean economy
Implementation Progress
Implementation Progress
accelerating progress
Indonesia has made notable progress in advancing sustainable ocean development, guided by the implementation of a national ocean policy and comprehensive blue economy plans. These efforts are being pursued both successively and in parallel to promote the country’s long-term maritime interests. Among ASEAN nations, Indonesia stands out for its advanced policy development, exemplified by the launch of a national blue economy roadmap in 2023 and a suite of implementation strategies.
These include the issuance of sovereign blue bonds (2023 and 2024), pilot projects on ocean accounting and blue carbon, initiatives to address marine debris, and improvements in fisheries and coastal management. Indonesia’s blue economy is currently progressing as Engaging or Strengthening across financial, social, and natural capital dimensions, supported by integrated policy frameworks, innovative financial instruments, and the establishment of a national blue economy index. These initiatives not only support conservation efforts, such as MPAs and ecosystem restoration, but also empower small-scale blue economy projects. While human and physical capital development remains an area for further investment, Indonesia’s trajectory reflects coordinated strategic efforts and implementation readiness.
Explore how Indonesia is positioned for each of the
Blue Economy Capitals.
Financial
Capital.
Financial Capital.
Indonesia’s ocean economy was valued at approximately IDR 1,290.2 trillion (~USD 80 billion), or 7.6% of GDP in 2021, underscoring its strategic importance to national development (Coordinating Ministry for Maritime Affairs and Investment, Republic of Indonesia [CMMAI-RI] and BPS [Statistics Indonesia], 2023; Jihan, 2022). In fisheries alone, Indonesia produces a total output of 24.57 million tons across capture fisheries and aquaculture, and exports products with a total value of US$5.95 billion, underscoring its importance to national trade and coastal livelihoods (Ministry of Marine Affairs and Fisheries, Republic of Indonesia [MMAF-RI], 2025; Kontan, 2025). Besides, Indonesia’s blue economy agenda prioritises seaweed downstreaming, with government plans targeting output of 14.14 million tons by 2029 (MMAF-RI, 2024; Antara, 2024) and the development of industrial salt capacity to achieve national salt self‑reliance (Antara, 2024; Mangeswuri & Ramadhan, 2024).
The country is leading the ASEAN region in advancing innovative blue finance mechanisms to unlock further potential. Notably, Indonesia issued its first sovereign blue bond in May 2023 (JPY 20.7 billion) (Ministry of Finance, Republic of Indonesia [MOF-RI], 2023), followed by a second in May 2024 (JPY 25 billion, 20-year tenor), funding 31 cross-ministerial projects focused on coastal disaster risk reduction, marine biodiversity, and ecosystem restoration, including mangrove and coral reef protection, conservation area expansion, and coastal waste management (MOF-RI, 2024).
To further bridge the ocean finance gap, Indonesia prepared Blue Sukuk (ICCTF, 2024) and launched the Coral Reef Bond in collaboration with IUCN, GEF, and BNP Paribas, leveraging a USD 200 million World Bank loan under the Oceans for Prosperity project (World Bank, 2024). A debt-for-nature swap signed in July 2024 redirected USD 35 million toward coral reef conservation (YKAN, 2024). Besides, Rare’s Small-Scale Fisheries (SSF) Impact Bond, launched at COP28 and funded with USD 6 million, is piloting in three communities in Southeast Sulawesi, Indonesia to establish co-managed protected areas that support the country’s 30×30 biodiversity goals. Using an outcome-based financing model with backing from investors and outcome funders, the Bond aims to scale sustainable fisheries management, increase fish biomass, and de-risk future investment in coastal conservation (Marciano, 2025). Altogether, these initiatives lay a strong foundation for sustainable blue finance and early-stage financial inclusion. However, access to capital remains uneven across coastal and inland communities, and overall financing still falls short of the scale required to fully meet SDG and blue economy goals. Expanding the reach and inclusivity of blue finance will be key to sustaining Indonesia’s leadership and ensuring equitable, long-term impact.
Physical
Capital.
Physical Capital.
Indonesia’s blue economy development is closely tied to the readiness and expansion of its blue infrastructure, which supports maritime connectivity, fisheries and aquaculture, and coastal resilience. The Sea Toll (Tol Laut) program has made measurable progress in enhancing national maritime logistics. In 2025, PT PELNI expanded its fleet and service routes, now operating 25 passenger vessels across 511 segments and 1,359 routes, connecting 74 ports nationwide, up from 72 ports in 2024 (Pelni, 2025). This expansion aims to reduce logistics costs and address regional socio-economic disparities.
Complementing maritime connectivity, Indonesia is investing in infrastructure to support coastal communities and climate resilience. The Kampung Nelayan Merah Putih (KNMP) program is revitalizing underdeveloped fishing villages by establishing integrated facilities such as docks, cold storage, ice factories, culinary centres, fish auction sites, and training hubs, supporting the national goal of developing 1,100 villages over five years (Ministry of Marine Affairs and Fisheries, Republic of Indonesia [MMAF-RI], 2025) .
Another major initiative is the Giant Sea Wall project along Java’s northern coast, designed to protect against land subsidence and coastal inundation. With an estimated investment of USD 80 billion over 15–20 years, the project is being implemented in carefully planned stages to balance economic, social, and environmental considerations (Coordinating Ministry for Infrastructure and Regional Development, Republic of Indonesia, 2025).
While these initiatives represent important progress, significant gaps persist, especially in scaling up industrial-grade infrastructure needed to strengthen productivity and competitiveness across blue economy sectors. Continued investment in inclusive, climate-resilient, and innovation-driven infrastructure will be key to unlocking Indonesia’s full blue economy potential.
Human
Capital.
Human Capital.
Human capital is a critical enabler for Indonesia’s blue economy development. In 2023, the fisheries and aquaculture sectors employed over 5.3 million people, including 2.8 million in capture fisheries and more than 2.1 million in aquaculture (MMAF-RI, 2025). While this reflects the sector’s importance to livelihoods and food security, there remains a need to strengthen workforce readiness, particularly in areas such as processing, logistics, and maritime services.
As of April 2024, Indonesia had over 1.47 million registered seafarers, though the workforce remains male-dominated, with women comprising just under 3%, highlighting the need for greater gender inclusion (Ministry of Transportation, Republic of Indonesia, 2025). Broader challenges persist, including limited access to maritime education and training, low levels of higher education attainment (only 12.3% of the workforce hold diplomas or higher), and low ocean literacy (BPS, 2023). These constraints are particularly pronounced in coastal fishing communities, where education quality, income levels, and access to opportunity remain limited (Nur et al., 2024; Silooy, 2017; Sukoyono & Suhana, 2015). To address human capital issue, particularly in the fisheries sector, MMAF-RI has initiated a transformation in the existing vocational training with a collaboration with the First Institute of Oceanography (FIO), Ministry of Natural Resources of China, introducing the establishment of Ocean Institute of Indonesia (OII) (MMAF-RI, 2024).
Indonesia’s Human Development Index (HDI) ranking of 113 out of 193 countries underscores the importance of investing in inclusive human capital development (UNDP, 2025). Addressing these gaps, through targeted education, vocational training, and community empowerment, will be essential to unlocking the full potential of Indonesia’s blue economy while promoting equity, resilience, and long-term sustainability.
Social
Capital.
Social Capital.
Indonesia has established a strong foundation for blue economy development through strategic policy planning and institutional collaboration. In 2021, Bappenas-RI, in partnership with the OECD, launched the Blue Economy Development Framework for Indonesia’s Economic Transformation, providing a clear vision for sustainable maritime growth (Pane et al., 2021). Building on this, the first edition of the Indonesia Blue Economy Roadmap was completed in July 2023, incorporating stakeholder insights to guide maritime sector development in alignment with Indonesia’s Vision 2045 (ARISE+Indonesia, 2023; Sambodo et al., 2023a).
The roadmap was further refined in December 2023 with the release of its second edition, which introduced an enhanced Indonesia Blue Economy Index (IBEI) (Bappenas-RI, 2023; Sambodo et al., 2023b). This tool enables the monitoring of blue economy progress across all provinces, using economic, social, and environmental pillars, supported by governance and technology as key enablers (Bappenas-RI, 2025). In August 2025, IBEI was reported at 49.58, indicating moderate national performance (Bappenas-RI, 2025). Together, the framework, roadmap, and index provide a coherent structure for policy implementation and performance tracking.
These strategic instruments are complemented by operational initiatives such as marine spatial planning (MSP) and the expansion of Marine Protected Areas (MPAs), which promote integration, collaboration, and inclusion in ocean and freshwater governance (MMAF-RI, 2022). In addition, Indonesia’s Minister of Trade Regulation Number 19 of 2025 sets a new framework for salt & fishery imports (Permitindo, 2025), driving value creation, inclusivity, and sustainability in the blue economy.
This is a significant step toward responsible marine trade and growth as a part of blue economy implementation in Indonesia. On fisheries improvement, Indonesia introduced the Quota-based Fishing Regime (PIT), established under Government Regulation No. 11/2023. This policy marks a transformative shift in Indonesia’s fisheries management by allocating catch quotas to both industrial and local fishers. This new mechanism ensures balanced resource use and equitable participation. Importantly, the blue economy roadmap has been embedded within Indonesia’s national development plans, enabling implementing agencies to align their programs and activities with a unified vision for sustainable ocean development.
Natural
Capital.
Natural Capital.
Indonesia’s Ocean Health Index score of 61 out of 100, below the global average of 69, underscores the importance of strengthening ecosystem-based management across the archipelago. The country has begun to adopt integrated approaches to ocean governance, including the expansion of Marine Protected Areas (MPAs) and the implementation of national strategies to address marine pollution.
Indonesia’s MPA Vision 30x45 aims to designate 30% of its marine territory, approximately 97.5 million hectares, as MPAs by 2045. As of 2024, 29.9 million hectares (around 9%) have been protected. While projections suggest an additional 3.3 million hectares may be designated by 2030, a significant opportunity remains to accelerate progress and close the remaining gap of 65 million hectares over the next 15 years (MMAF-RI, 2020; Nikijuluw, 2024). The new MPA-OECM vision seeks to adopt a clustered MPA which focused on three types of MPA clusters: MPA for biodiversity, fisheries and blue carbon ecosystem (MMAF-RI, 2025).
In parallel, Indonesia has made meaningful strides in tackling marine plastic pollution. Under Presidential Regulation No. 83 of 2018, the country set an ambitious target to reduce plastic waste leakage into the ocean by 70% by 2025. As of 2023, a 41.68% reduction has been achieved, demonstrating strong momentum and commitment to improving marine ecosystem health (WRI Indonesia, 2024).
Together, these initiatives reflect Indonesia’s growing leadership in marine conservation and its commitment to aligning national efforts with global sustainability goals. Continued investment in marine spatial planning, ecosystem restoration, and cross-sector collaboration will be key to enhancing ocean health and resilience.
Implementation Capacity
Implementation Capacity
implementation ready
As a middle-income country with vast archipelagic waters and the largest Exclusive Economic Zone in the ASEAN region, Indonesia is well-positioned to support the implementation of its blue economy agenda. Its significant population and geographic diversity present unique implementation challenges, yet these are balanced by strong enabling conditions, including effective governance, sound regulatory frameworks, and a stable economy. Indonesia is well-positioned to leverage its natural and human capital to drive sustainable growth and regional leadership.
Indonesia can accelerate its blue economy by strengthening alignment between national and regional action, crowding in investment for potential sectors such as aquaculture and blue carbon, and ensuring growth is inclusive across regions and income groups. Building ocean literacy and practical skills in coastal communities, improving protection and restoration of marine habitats, and expanding reliable regional data on ecosystems and the marine workforce would help turn potential into sustained jobs and productivity. At the same time, designing policies and projects with climate resilience, cleaner production, stronger pollution control, and more effective enforcement against illegal fishing will reduce risk, attract reputable international investors, and make supply chains and food security more robust.
