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Indonesia Accelerates Seaweed Downstreaming

Indonesia is accelerating efforts to transform its seaweed industry into a globally competitive, high-value manufacturing sector through comprehensive downstream development, technological innovation, and international partnerships. With abundant marine resources and growing demand for seaweed-based products, the government is positioning the country to move beyond raw material exports and become a major global supplier of processed seaweed derivatives.

Industry Minister Muhammad Sarmuji expressed optimism that Indonesia could establish itself as the world’s leading seaweed industry through an integrated development strategy connecting cultivation, processing, research, and international markets. The initiative is part of the Integrated Seaweed Development Action Plan (ISDAP) 2026–2030, coordinated by the National Development Planning Ministry (Bappenas).

The plan aims to strengthen domestic processing capabilities and expand the production of higher-value products, including agar, carrageenan, pharmaceutical ingredients, cosmetics, and bioplastics. By developing these industries domestically, Indonesia seeks to capture a greater share of the global value chain, create new investment opportunities, and generate additional economic benefits for coastal communities.

Seaweed downstreaming would become an important component of Indonesia’s long-term industrial strategy. The government intends to incorporate the sector into the National Industrial Development Master Plan (RIPIN) 2026–2045, ensuring stronger connections between seaweed cultivation centers, processing facilities, and end-user industries.

The strategy is supported by Indonesia’s positive manufacturing performance. In the second quarter of 2026, the non-oil and gas processing industry recorded annual growth of 5.32 percent, exceeding national economic growth of 5.29 percent. The sector contributed Rp1,102.88 trillion to gross domestic product (GDP), accounted for 38.98 percent of realized investment, and generated 82.40 percent of national exports.

Indonesia’s manufacturing value added also reached US$275.61 billion in 2025, ranking the country 12th globally and first in Southeast Asia, according to World Bank data cited by Sarmuji. Meanwhile, the food and beverage industry, one of the major consumers of processed seaweed, grew by 6.77 percent during the first half of 2026. Its contribution reached 41.86 percent of non-oil and gas industrial GDP, demonstrating the importance of downstream agricultural and marine products to national manufacturing development.

Alongside its domestic industrial ambitions, Indonesia is actively seeking international partners to strengthen its marine and fisheries industries. The Ministry of Marine Affairs and Fisheries (KKP) has opened opportunities for European investors to participate in the development of both tilapia and seaweed industries, covering activities from upstream production to downstream processing.

The opportunities were presented during the Indonesia-Europe Business Forum 2026 in Tangerang, Banten. In the tilapia sector, potential cooperation includes improving fish seed quality, increasing feed efficiency, strengthening fish health management, and implementing product traceability systems. These improvements are expected to support consistent production while meeting the requirements of international markets.

Indonesia’s tilapia export performance illustrates the sector’s commercial potential. Between January and November 2025, export value reached US $87.57 million, with the United States accounting for 51.7 percent and Canada representing 24.7 percent. Exports to the European Union reached US $7.13 million, equivalent to 8.1 percent of the total. Indonesian tilapia also achieved an average export value of US$ 6.98 per kilogram, the highest among major exporting countries, including China, Colombia, Vietnam, and Taiwan.

Further opportunities exist in processing by-products. Fish skin and scales can be transformed into collagen and gelatin ingredients, while other processing materials can be utilized for fish meal and fish oil production. Such diversification can improve resource efficiency, reduce waste, and increase the overall economic value of fisheries operations.

For seaweed, international cooperation is expected to improve raw material quality, cultivation technology, mechanization, and post-harvest handling. Better drying and storage facilities are particularly important for maintaining consistent quality before seaweed enters industrial processing. Beyond conventional products such as agar and carrageenan, seaweed offers significant potential in food manufacturing, cosmetics, pharmaceuticals, agricultural applications, and environmentally friendly bioplastics.

Indonesia’s ambition to become a global leader in seaweed and marine-based industries will depend not only on production capacity and investment but also on efficient supply chains, reliable logistics, and access to international markets. As opportunities expand between Indonesian producers and overseas buyers, dependable freight forwarding becomes increasingly important in connecting raw material suppliers, manufacturers, distributors, and customers. 

Translindo is ready to support businesses with professional freight forwarding and logistics solutions, helping manage the movement of goods across domestic and international markets. Whether exporting processed seaweed products, seafood, industrial materials, or other commodities, businesses can rely on us as a logistics partner committed to facilitating efficient cargo transportation and supporting growth in global trade.

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