The South Sulawesi Provincial Administration is determined to attract investment in the maritime industry sector, particularly on seaweed processing.

Secretary of the South Sulawesi Province, Jufri Rahman, on June 5, 2025 met with representatives from Oceva Indonesia − a privately-led, marine product downstreaming − along with heads of the Investment and One-Stop Integrated Services Agency (DPMPTSP) and the provincial inspectorate.

The meeting focused on Oceva’s plan to establish a seaweed processing facility in South Sulawesi and target to launch its investment within the next six months.

“Since this investment requires support from the provincial government, it must begin with a memorandum of understanding (MoU) that outlines the rights and responsibilities of each party. This will be followed by a letter of support signed by the regional head,” Jufri said.

He recommended Takalar as the ideal location for the factory, citing its status as one of the region’s top seaweed-producing areas.

“They need at least 11 hectares of land. I’ve suggested Takalar because it’s close to the raw material sources, which would help reduce mobilization costs,” he cited.

South Sulawesi is known as one of Indonesia’s major seaweed production hubs, with key centers in Takalar, Maros, Pangkep, Bone, and Selayar. A significant portion of the province's seaweed output is exported to China, Japan, and European markets.

Oceva’s Founder, Fahrana Amelia Lubis, said that the investment plan is part of a broader strategic initiative that the company has been developing since last year.

“Today’s agenda is to discuss the development of the seaweed industry in South Sulawesi, especially in Takalar and Maros. We’re here to seek the support of the provincial government to strengthen the entry of foreign investment in seaweed processing,” Fahrana said.

She emphasized that South Sulawesi was chosen for the project due to its prominent role in Indonesia’s seaweed production.

“This region produces around 65 percent of the national seaweed supply. That’s why Makassar is our choice for the pilot project in seaweed downstreaming,” she added.

Fahrana highlighted the positive social impact the factory is expected to bring. The project aims to promote equitable economic circulation − not only benefiting the industry, but also improving the livelihoods of local communities and seaweed farmers through a fair and just system.

Looking ahead, Oceva has plans to expand its seaweed industrial development to other provinces in Indonesia, should the South Sulawesi initiative prove successful.

Production and export potential

Indonesia’s seaweed industry is emerging as a critical driver in the global marine economy, bolstered by impressive production levels, strong market potential, and renewed government focus on industrial downstreaming and competitiveness.

A 2023 report published by the Directorate General for the Strengthening of Competitiveness of Marine and Fisheries Products at the Ministry of Marine Affairs and Fisheries on the Seaweed Market Profile, Indonesia produces seaweed across 15 major producing provinces, accounting for 99.6 percent of the nation’s total seaweed output. In 2022 alone, national production reached 9.28 million tons, valued at Rp40.85 trillion (US$2.6 billion). This output places Indonesia among the top global players in seaweed production, particularly for tropical varieties.

Despite the massive volume, challenges remain in maximizing export value and downstream product competitiveness. According to recent data, Indonesia's seaweed has a Revealed Comparative Advantage (RCA) of 6.25 in the European market and 0.93 in the U.S., suggesting high potential in Europe but weaker positioning in the American market. However, downstream products such as agar-agar (jelly) still struggle to gain strong footholds, with RCAs of only 0.65 for Japan and 4.35 for Europe.

The dominant type of seaweed cultivated is Kappaphycus Alvarezii, used primarily for carrageenan extraction, representing 82.7 percent of global production at 7.05 million tons. Another key variety, Gracilaria, accounts for 1.91 million tons or 32.1 percent of world output. These varieties serve multiple industries, including food, animal feed, horticulture, fertilizers, pharmaceuticals, cosmetics, and even biofuels.

Export figures further highlight Indonesia's global importance: in 2022, seaweed exports reached US$400 million, comprising 31.9 percent of the world market and marking a 78.8 percent year-on-year (YoY) growth rate. Moreover, the global demand for seaweed is on a sharp rise, growing 10.4 percent annually from 2017 to 2022, and hitting a peak value of US$3.71 billion in 2022 − a 32.4 percent increase over the previous year.

The government is implementing a comprehensive strategy to harness the sector’s momentum, including:

● Expanding and diversifying markets for tropical seaweed through international promotion and trade partnerships;

● Developing high-value downstream products, especially carrageenan and agar, to increase export value;

● Driving innovation in cultivation technology, particularly in fast-growing and climate-resilient seaweed strains;

● Mapping and zoning of seaweed farming areas to optimize production and environmental sustainability.

Local companies like PT Algalindo Perdana, PT Amarta Carrageenan Indonesia, and PT Emerald Seaweed Indonesia are leading the charge in seaweed exports, capitalizing on global demand and playing a key role in shaping Indonesia’s seaweed supply chain.