The Ministry of Industry (Kemenperin) is preparing several incentives to support the downstream processing of seaweed. Putu Juli Ardika, Director General of Agro Industry at Kemenperin, announced the revision of the Minister of Industry Regulation No. 9 of 2022 regarding the Provision of Machine and Equipment Assistance, aimed at supporting Indonesia’s seaweed processing plants. This revision includes providing assistance for the purchase of new machines, covering 30%-35% of the machine price, with small or medium-scale seaweed processing plants receiving up to 40% assistance. Additionally, Kemenperin is preparing other incentives by granting industrial area status to seaweed processing plants, many of which currently operate outside industrial zones. This status is expected to facilitate product diversification, industrial collaboration, and domestic component level (TKDN) certification. During the same event, the Indonesian Seaweed Association (ARLI) mentioned that around 10 domestic seaweed processing plants have been idle since 2016, leaving only 45 operational. With machine restructuring assistance from Kemenperin, these idle plants are now able to resume operations.
Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, noted that the government is developing a seaweed downstream program. This program will produce various derivative products such as organic fertilizer, biodegradable plastic, biofuel, and fish feed. Seaweed, which can be harvested in 34 days, will be processed in factories to create millions of jobs. “Poverty is prevalent in coastal areas. The seaweed downstream program is very beneficial. We have already started,” Luhut said after the National Development Planning Conference on Monday, May 6, 2024. Luhut emphasized that seaweed downstreaming will become a flagship program for Indonesia, learning from India and implementing various improvements observed in their seaweed processing plants. The government will also absorb domestic seaweed production. Despite Indonesia’s vast maritime area, with over 70% of its territory being sea and 12 million hectares allocated for cultivation, seaweed production remains suboptimal. Currently, seaweed cultivation only covers 102,000 hectares or 0.8%. Over 60% of seaweed exports are still in raw or dried form with limited processing.
