The economic contribution of maritime sectors to Indonesia’s gross domestic product remains low despite the estimated annual value of the maritime economy standing at about US$1.33 trillion.
The 1957 Djuanda Declaration marked the beginning of Indonesia’s efforts and eventual success in winning recognition as an archipelagic state. Owing to the immense size of its maritime zones, with some 6.4 million square kilometers and 17,504 named and unnamed islands, Indonesia is the largest archipelagic state in the world (BIG & Pushidrosal, 2018). Thus, the country is naturally blessed with vast ocean areas and abundant living and non-living marine resources.
Those natural advantages do not necessarily resonate with the national aptitude and attitude to become a strong maritime nation whose lifeblood is the sea.
The size of the biodiverse coastal and ocean areas across the archipelago poses a significant challenge to effective ocean management. To benefit from its abundant marine resources, Indonesia needs an effective ocean policy supported by long-lasting commitment from all national ocean enterprises.
The 2017 Indonesia Ocean Policy (IOP), a game-changer for maritime development in the archipelago, will work as it has received support from all stakeholders. The policy aims to accelerate the implementation of Indonesia’s great vision of becoming a Global Maritime Fulcrum (GMF).
Pursuing this ambition, the old working environment, where institutions plan and execute their sector-based programs and activities, needs to be substituted for a better approach that pursues synchronization, harmonization and coherence within the existing organizational structure and interconnected links. Therefore, the Coordinating Maritime Affairs and Investment Ministry was formed and tasked with the coordination, synchronization and control ministerial affairs in the maritime sector and, more recently, investment.
The policy is seen as the most robust government commitment to transforming Indonesia’s geographical advantages into real benefits for the country and its people. Notwithstanding, the policy alone does not necessarily negate all the ocean management problems in Indonesia. The 2021 World Bank report warns that “there are challenges to the extent and integrity of Indonesia’s marine and coastal ecosystems that, if not managed well, could undermine the potential of Indonesia’s ocean economy”.
The economic contribution of maritime sectors to Indonesia’s gross domestic product (GDP) remains low despite having an estimated value of about US$1.33 trillion, covering fisheries and aquaculture, energy and mining, tourism, maritime industries and services, biotechnology industries and sea transportation. The need for an integrated and multisectoral blue economy strategy is pressing because it will enhance ocean development, equality and the well-being of coastal communities.
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