Implementing the Blue Economy for a Sustainable Seaweed Business in Rote Ndao, Indonesia: An Institutional and Supply Chain Analysis

Abstrak

Rote Ndao Regency, a major seaweed production center in Indonesia, possesses significant potential yet faces complex sustainability challenges. This research analyzes the implementation of the Blue Economy concept in achieving a sustainable seaweed business in this critical region. The study employs a mixed-methods approach with an explanatory sequential design, integrating quantitative data from surveys on costs, production, and income with qualitative data from in-depth interviews, observation, and document analysis. The analysis focuses on three main aspects: (1) the gap between government policy and on-the-ground implementation, (2) the structure and efficiency of the supply chain, and (3) an evaluation of business sustainability

using the Triple Bottom Line (TBL) framework, covering economic, social, and environmental dimensions. The findings reveal a significant chasm between the Blue Economy policies outlined in planning documents and the operational reality, a gap caused by profound institutional capacity weaknesses. The supply chain structure is proven to be inefficient and inequitable, characterized by the dominance of middlemen (tengkulak) who control prices and information, thereby suppressing farmer profitability. The TBL analysis concludes that the sustainability of the seaweed business remains fragile: economically vulnerable to price volatility and a lack of downstream processing, socially overshadowed by unresolved conflicts, and environmentally at risk of damaging coastal ecosystems. This study recommends strategic interventions focused on strengthening farmer institutions through professionally managed cooperatives, promoting local downstream industries to capture value-add, enforcing marine spatial planning regulations to mitigate conflict, and providing incentives for environmentally friendly cultivation practices