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Indonesia is one of the largest seaweed producers globally, with the potential to transform this sector into a source of national pride and economic growth. However, this immense potential remains largely untapped, particularly in Papua, located in the easternmost part of the country. While Indonesia contributes about 38% of the global seaweed supply, less than 1% of the available seaweed farming land in Papua is currently utilised. Despite its immense natural wealth, Papua remains one of Indonesia’s least economically developed regions. Papua has a pressing need for economic diversification, as it holds the highest poverty rate in Indonesia at 26.03% (Indonesia’s Bureau of Statistics, 2023). The seaweed industry offers a promising opportunity to strengthen the region’s economic resilience.
Sea of Opportunity Amidst Challenges
Geographic and infrastructural challenges have long hindered economic growth in Papua. Seaweed farming could be an ideal solution as it requires minimal initial investment, has a rapid growth cycle and has a low environmental impact when cultivated correctly. However, several challenges across the value chain must be addressed to unlock its full potential.
On the upstream side, smallholder farmers often lack access to high-quality seedlings, which are essential for consistent yields and high-quality products. Furthermore, they lack opportunities to gain knowledge, particularly regarding seed lifecycle management and the use of planting calendars. The types of seaweed cultivated are also limited, which reduces market diversification opportunities and environmental resilience.
Further downstream, the lack of value-added processing facilities is a major hurdle. Currently, most seaweed is sold raw or dried, preventing farmers from reaping higher profits from processed products such as cosmetics or eco-friendly packaging materials. Limited storage facilities also lead to rapid quality degradation, reducing the market value of the
harvested seaweed. These issues are compounded by an underdeveloped local market and limited buyer networks, which make it difficult for farmers to secure fair prices. Geographic isolation worsens the situation, as high transportation costs reduce competitiveness in national and international markets.
Potential Pathways for Growth
With the right efforts, Papua’s seaweed sector has the potential to overcome its challenges and contribute significantly to Indonesia’s blue economy. Targeted interventions across the upstream and downstream areas of the seaweed value chain can unlock the region’s potential, providing economic benefits to coastal communities.
Establishing improved, and integrated seed nurseries would provide farmers with access to high-quality seedlings, leading to better yields. Integrated Multi-Trophic Aquaculture (IMTA), which combines seaweed cultivation with other marine farming practices, could enhance productivity while maintaining ecological balance. Developing centralised facilities to process seaweed into high-value derivatives, such as biofertilizers or animal feed, could enhance value chains and farmers’ income.
Digital training platforms can also play a critical role in equipping farmers with modern farming and business practices. Establishing a “Seaweed Academy” offering both online and in-person training could bridge knowledge gaps and encourage farmers to adopt innovative, efficient farming and processing techniques.
Addressing logistical challenges through subsidized transportation costs or collaborative shipping networks could make Papua’s seaweed products more competitive in wider markets. Additionally, leveraging seaweed and seagrass’s combined carbon absorption capabilities of seaweed and seagrass – estimated at 83,000 metric tons of carbon per square kilometre (JW Fourqurean, et.al., 2012) as part of blue carbon initiatives could attract climate-oriented investments, offering both economic and environmental benefits to the sector.
Mobilising Collective Efforts
Unlocking Papua’s seaweed potential requires a coordinated approach involving government institutions, private companies, NGOs, and local communities, among others. Prioritising policies that promote investment in infrastructure, research, and market development are crucial. Strengthening farmers’ capacities through training and providing access to resources will ensure the sector’s sustainability.
The World Bank’s 2023 report identifies seaweed markets with the potential to grow by an additional USD 11.8 billion by 2030. With global demand for seaweed rising—from food industries to sustainable packaging—Papua’s natural resources position it as a potential leader in this growing market. By addressing existing challenges, Indonesia can transform seaweed cultivation in Papua into a model of sustainable development, lifting coastal communities out of poverty while strengthening the nation’s position in the blue economy.
A Vision for the Future
Now is the time to take action. With the right investments and collaborative efforts, Papua’s seaweed sector can become a cornerstone of Indonesia’s economic and environmental future. This is more than just an opportunity to boost production—it’s a chance to redefine sustainable development in one of the world’s most biodiverse regions.
