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Current Status and Trends of Blue Economy Development in Indonesia: Policy Direction, Practice-driven Approaches, and Regional Collaboration

Advances in Economics and Management Research 2025
Ziyuan Wang

Summary

This review examines Indonesia's blue economy development trajectory, analyzing policy directions, practice-driven approaches, and regional collaboration strategies, while identifying sustainability challenges including overexploitation of marine resources and the integration of digital transformation into ocean-based economic activities.

In the context of increasing global attention to the blue economy, Indonesia, as the world’s largest archipelagic nation, is leveraging its geographical advantages and marine resources to incorporate the blue economy into its national development strategy. This strategy involves promoting the sustainable utilization of marine resources, advancing digital transformation, and fostering international cooperation, all aimed at enhancing Indonesia’s competitiveness in the blue economy within the Asia-Pacific region. Indonesia is confronted with considerable sustainability challenges, including overfishing, marine ecological degradation, and plastic pollution, while also navigating complex maritime disputes with neighboring countries and external powers. Furthermore, issues such as insufficient interdepartmental collaboration, central-local coordination barriers, and weak local implementation hinder the development of its blue economy. Despite these challenges, Indonesia continues to demonstrate its role as a key advocate of the blue economy through multilateral cooperation and regional alignment. This not only facilitates its economic structural transformation and modernization of regional governance but also contributes to international blue governance and the creation of a regional community of shared future, offering the “Indonesian approach” as a model.

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