5 Examples of Maritime Economy in Indonesia

5 Examples of Maritime Economy in Indonesia
As a maritime country, Indonesia has implemented a maritime economy which is an economic policy carried out by archipelagic countries to equalize the economic development of their country.

The maritime economy itself is basically all economic activities related to the sea and the maritime sector. In Indonesia, this activity is regulated in Law Number 27 of 2007 which states that the maritime economy is economic activity in coastal areas and small islands.

To better understand the maritime economy in Indonesia, below is a discussion starting from the objectives, benefits, to examples in Indonesia.

Illustration, example of maritime economics (Pexels)

Maritime Economic Goals

Indonesia is one of the largest archipelago countries in the world, with a total coastline of more than 54,000 km. This is also what makes Indonesia known as one of the largest maritime countries.

Therefore, it is not surprising that Indonesia is developing maritime economic principles. This is because there are several goals of the maritime economy to be achieved, namely:

1. Strengthening Indonesia’s identity as a maritime country

By applying maritime economic principles, Indonesia can strengthen its identity as a strong maritime country in the eyes of the world. This could increase one of the country’s sources of foreign exchange.

2. Helps Manage Marine Resources

The maritime economy can also indirectly help manage the abundant natural resources in Indonesia’s seas.

3. Leveling the Infrastructure

By applying maritime economic principles, national development can be carried out evenly. This is because most of Indonesia’s territory is sea.

4. Increasing Maritime Connectivity

With tens of thousands of islands, Indonesia needs strong connectivity so that the national economy can run well. Therefore, Indonesia is developing its maritime economy in the hope of improving the national economy, one of which is the shipping industry.

Maritime Economic Benefits

The following are a number of maritime economic benefits for Indonesia, including:

1. Sustainable Economic Growth

The realization of the sea toll road will really help economic activities between islands. For people who live in frontier areas, the economic disadvantage has improved continuously.

2. Welfare of Business Actors

In the economy, maritime business actors are fishermen, fish farmers and small-scale maritime communities. All business actors will later gain much better prosperity.

3. Better environmental sustainability

Another benefit of the maritime economy for Indonesia is that the sustainability of the marine environment is better protected and maintained. The positive impact is that marine resources will continue to be sustainable.

4. The Sea as a Unifier of the Nation

Many frontier and underdeveloped areas in Indonesia are difficult to reach. Therefore, with the presence of sea highways and many ports, it is hoped that transportation facilities will be easier. An improving economy, of course, means that the nation’s ownership will become stronger.

5. Development of Maritime Economic Activities

Increasing the development of maritime economic activities is expected to encourage economic growth and improve people’s welfare. Maritime economic development is urgently needed considering the large potential of the existing maritime economy.

Illustration, example of maritime economy (ANTARA FOTO/Iggoy el Fitra/Spt.)

Example of Maritime Economy in Indonesia

The following are 11 examples of maritime economics that have been carried out in Indonesia.

1. Exploration of Natural Resources

The first example of a maritime economy is the exploration and exploitation of natural resources, such as offshore oil and gas extraction, marine mineral mining, and the exploitation of other natural resources such as salt, sand and shellfish.

2. Shipbuilding Industry

In order to support inter-island connectivity, the shipbuilding industry is an example of the main activities of the maritime industry in Indonesia.

3. Ship Logistics Industry

Is an activity of sending goods carried out at sea using ships on a large scale and across islands.

4. Shipbuilding Industry

The next example of maritime economics is the shipbuilding industry which includes the manufacture, repair and maintenance of ships, as well as the production of marine equipment such as engines and navigation equipment.

5. Marine Research and Development

The next example of maritime economics is marine research and development. Scientific research on marine biology, oceanography, fisheries research, as well as technology development and innovation in the marine sector.

6. Renewable Marine Energy

The next example of maritime economics is renewable marine energy. Development of wave energy, tidal energy and sea wind energy technology to utilize renewable energy resources in the sea.

7. Maritime Services

The seventh example of maritime economics is maritime services. Maritime insurance, maritime banking, logistics and warehousing, as well as marine planning and consulting services.

8. Container Terminal

Shipping goods between islands and between countries requires containers. The maritime industry also needs to provide berths for ships carrying containers. From this terminal, further land transportation will deliver goods in containers to their respective destinations.

Illustration, example of maritime economics (ANTARA FOTO/Adwit B Pramono/tom.)

9. Marine Tourism

Marine tourism is also one of the businesses that can support maritime economic activities. Trep’s exclusive cruise ship is one example.

10. Mining and Energy Industry

Many mineral resources in Indonesia are located in water areas. For example, namely petroleum, natural gas, silver, and so on. The whole thing has now become a mining and energy industry.

11. Fisheries and Biotechnology Industry

This industry has quite a lot of value because it is connected to other industries, for example food and beverages, medicines, cosmetics, and so on. This industry is also a supplier of raw materials for marine resources whose types of products can be used or managed directly.