Indonesia's plan to ban seaweed exports could backfire—hurting its own industry

Published Feb 5, 2024

Tridge summary

Indonesia's plan to ban seaweed exports, aimed at encouraging domestic processing, could negatively impact the country's largest marine aquacultural activity, affecting around 62,000 farmers. The ban could lower commodity prices, reduce national production, and may not aid domestic processors in competing with large foreign companies. Instead, the government could stimulate the seaweed industry by aiding farmers in becoming more productive and sustainable, supporting domestic processors in upgrading to efficient technologies, investing in research and development, and implementing a national system for satellite monitoring of marine aquaculture.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Indonesia, the world's second-largest seaweed producer, plans to introduce a nationwide export ban on seaweed, following a ban at a provincial level in 2022.President Joko "Jokowi" Widodo argued in November that the ban would encourage investment in domestic seaweed processing, as part of a larger suite of export restrictions.However, my research on seaweed value chains in Indonesia suggests that an export ban on Indonesian seaweed would adversely impact domestic seaweed production. Seaweed farming is Indonesia's largest marine aquacultural activity, representing US$1.89 billion of the total $2.05 billion Indonesian marine aquaculture production annually. Over the last twenty years, it has grown rapidly and now supports the livelihoods of around 62,000 farmers, as well as many more people in coastal communities who work as casual wage laborers in the industry.An export ban is likely to lead to lower commodity prices, turning some of those farmers to other sources of income and ...
Source: Phys

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