The development of Indonesian seaweed based on innovation cluster model

In 2018, Indonesian production of the seaweeds Eucheuma cottonii and Gracilaria sp. reached 11.08 million tons and 1.55 million tons, respectively. However, the economic value obtained is low, as 85% of the production is still exported as a raw material. The remainder is exported as semi-refined materials, i.e. ATC chips and semi refined carrageenan (SRC), with very little refined carrageenan. There are no companies processing seaweed into end products where seaweed is the main raw material, such as in the food industry, pharmaceuticals, cosmetics, etc. The supply chain from upstream (aquaculture) to intermediate (intermediate products) and downstream industries is not efficient in Indonesia, because almost all intermediate and downstream industries are concentrated in big cities like Jakarta and Surabaya while the bulk of the upstream industry is spread across large expanses of eastern Indonesia. As a result, the bargaining position for upstream products produced by farmers is weak. All of these problems are expected to be minimized by referring to a holistic work plan through Seaweed Innovation Clusters, enhancing communication and collaborative collaboration of Quadruple-Helix ABGC (Academic, Business, Government and Community) and other supporting elements as the main pillar of the innovation cluster. With this synergy, added value, and business continuity, the role of seaweed in raising regional competitiveness can be improved.