Indonesia has made the ocean central to its economic plans. Its Blue Economy Roadmap, published in 2023, aims for the sustainable use of marine resources as part of the country’s transition to a modern economy by 2045 — and it names seaweed as a key export commodity, with a focus on production, investment, processing and good manufacturing practice.
For investors and international partners, that raises a practical question: where, in a sector made up largely of smallholders, can capital and expertise actually be deployed?
An established industry with room to grow
According to the Policy Recommendations for Indonesia, Phase 3 — Strategies for Indonesia’s Seaweed Aquaculture Policy to Enhance an Established Industry — seaweed farming supports the livelihoods of an estimated 90,000 to 120,000 families. They cultivate on average around 0.25 hectares each and produce roughly 2 to 6 tonnes of dried seaweed a year. Key species include cottonii (Kappaphycus alvarezii), spinosum (Eucheuma denticulatum) and Gracilaria, and most production goes to the hydrocolloids market for carrageenan and agar.
The same document is frank about the gaps: long chains of collectors and traders in remote areas, seasonality, a shortage of basic infrastructure such as drying platforms, limited research on cultivars and no commercial hatcheries.
Seven recommendations — and what they mean for investors
The Phase 3 recommendations are aimed at policymakers, but each one points to an opportunity for private and development capital:
- Streamline licensing for seaweed farming — lowering entry barriers for new, organised production.
- Promote cooperative development — strengthening farmer groups’ bargaining power and making them credible commercial counterparties.
- Invest in infrastructure — seed banks, nursery networks and value-added processing, with more transparency and reliability across the supply chain.
- Fund research and innovation — including high-quality, climate-resilient strains, through public–private and academic collaboration.
- Empower women and youth in seaweed farming, including incentives for new businesses and inclusive cooperatives.
- Train farmers in best practice for farming and post-harvest handling.
- Promote sustainable farming, including biodegradable alternatives to plastic floats.
Why cooperatives are the practical entry point
Most of those opportunities run through the same bottleneck: the farmer. Infrastructure, training, finance and better seedlings only pay off if they reach thousands of small producers and change how they farm and sell. Cooperatives are the institutions built to do exactly that.
- Reach. One agreement with a cooperative reaches many farmer groups.
- Accountability. Member governance, records and a counterparty that can sign contracts and repay loans.
- Delivery. Existing field staff, mentoring and training channels for new practices.
- Market link. Relationships with processors and exporters that turn better farming into better income.
Kospermindo’s part
Kospermindo — Koperasi Serikat Pekerja Merdeka Indonesia — has worked with seaweed farmer groups in South and Central Sulawesi since 2002. Our model combines Farmer Group Centres, mentoring and technical assistance, savings and loan services, warehousing and the Warehouse Receipt System, and partnerships with factories and exporters.
We are looking for partners who share the ambition of the Blue Economy Roadmap: buyers who want traceable supply, investors in processing and infrastructure, and development and research partners who want their programmes to reach the water’s edge.
Download the full Policy Recommendations Phase 3, explore how to partner with us, or contact our management team.