Indonesia Continues to Pursue Ideal Seaweed Export Ratio

The government is striving to achieve the seaweed export target with a 50-50 ratio of raw materials and value-added products. This was stated by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan. According to 2021 data, Indonesia`s seaweed export composition is still dominated by raw materials or dried seaweed at 65 percent. While the remaining 35 percent are processed seaweed products that have added value. “The export target with a 50-50 ratio of raw materials and value-added products has not been achieved. In 2021, our seaweed export composition is still dominated by dried seaweed raw materials at 65 percent,” said Luhut, Tuesday (1/11/2022). Therefore, Luhut mentioned that there are several things that need to be done. Such as continuing the seaweed industrialization roadmap with measurable targets and clear progress targets. In addition, Luhut said, making comprehensive improvements. Starting from the related regional regulations that must be integrated with the management of marine and coastal spatial planning that is appropriate. Including the provision of quality seeds to maintain quality until the regulation of raw material exports. This is also to increase the capacity and ability of domestic processed marine products that are more competitive. According to Luhut, all can be achieved with the synergy of all Ministries/Institutions, regional governments and the private sector. “And this is a challenge for us all to seriously increase the downstreaming of competitive seaweed processing industries,” he said. It is known that Indonesia is a place where various types of seaweed grow. Based on the World Food and Agriculture Organization 2020, Indonesia is the largest producer of Eucheuma Cottoni seaweed in the world. In addition, Indonesia is also the world`s second largest producer after China for Gracilaria Verrucosa. Unfortunately, almost 93 percent of total domestic production is still exported in raw form. Whereas it is known that seaweed can be processed into industrial raw materials such as carrageenan (chemical compound) which has added value. “When looking at the export volume until September 2022, it was recorded that the volume of seaweed exports was 180,000 tons,” said Minister of Maritime Affairs and Fisheries, Sakti Wahyu Trenggono. “Where most of the exports are still dominated by dried seaweed at 93 percent. This shows that the added value of seaweed has not been fully utilized domestically,” said Sakti.