Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, has announced growing investor interest in Indonesia’s seaweed downstreaming program, with State inestment management agency Daya Anagara Nusantara (Danantara) among the companies looking to invest. 

The program, coordinated by the Ministry of Maritime Affairs and Investment, is projected to bring up to 13 times added value through processing and innovation.

Luhut shared that the program is still under feasibility study, in partnership with the University of California, Berkeley. The research is being conducted in two pilot locations: Buleleng, Bali, and the island of Lombok in East Nusa Tenggara.

"Currently, many investors are interested in the seaweed downstreaming program. Danantara is closely monitoring the study’s progress," Luhut said at the International Conference on Infrastructure on Thursday, June 12, 2025.

One key seaweed derivative product highlighted by Luhut is organic fertilizer. Indonesia currently exports much of its raw seaweed to India, where it is used as input in organic fertilizer industries.

By late 2023, domestic seaweed prices had reached between US$1,000 and US$2,000 per ton. In contrast, the organic fertilizer industry could absorb seaweed at around US$8,000 per ton, while carrageenan and agar industries could pay up to US$13,000 per ton − both essential inputs for pharmaceuticals, cosmetics, and processed food industries.

Luhut also pointed to the potential of converting seaweed into biofuel. Modern technology now allows one ton of green seaweed to be processed into 356 liters of ethanol. The government aims to produce 4 billion liters of ethanol from seaweed, meeting approximately 10 percent of jet biofuel demand. Achieving this would require a seaweed cultivation area of around 260,000 hectares. Seaweed downstreaming is also seen as a strategic move to alleviate poverty in coastal regions.

“About 26 percent of Indonesia’s population lives in coastal areas. With seaweed harvestable every 30 days, there will be no more economic problems there. People can also farm other commodities like lobsters and abalone,” Luhut cited.

Meanwhile, the Ministry of Marine Affairs and Fisheries (KKP) is developing seaweed-based fertilizers intended to support 100,000 hectares of agricultural land. According to Budi Sulistyo, Director General of Strengthening the Competitiveness of Marine and Fishery Products at KKP, the fertilizer is made from various seaweed types, including Sargassum sp., Ulva lactuca, Eucheuma spinosum, and Eucheuma cottonii.

“This is being developed as a bio-fertilizer. We’ve received 3,600 tons of liquid fertilizer annually from seaweed businesses, which can cover fertilizer needs for 100,000 hectares of land,” Budi said during the “Blue Food for Food Sovereignty” event at the Ministry of Marine Affairs and Fisheries in November 2024.

He added that this seaweed fertilizer effort supports Indonesia’s push for food self-sufficiency. With national fertilizer needs at 13 million tons and conventional supply only meeting around 50 percent, seaweed-based fertilizer could help close the gap. Budi confirmed that the seaweed fertilizer, produced by KKP-supported businesses in Bali, is already registered and available on the market.

This initiative reinforces Indonesia’s strategic shift toward sustainable marine-based development, leveraging its vast seaweed potential for economic, environmental, and food security gains.