INDONESIA’S BLUE ECONOMY BUSINESS MODEL CAN COMPETE WITH CHINA

Gunter Pauli, founder of the Global ZERI (Zero Emissions Research Institute) Network, sees that Indonesian entrepreneurs must have changed or restructured business model which is oriented toward blue economy due to Indonesia’s marine resource potency. The business model is only oriented toward one or two commodities, like seaweed or carrageenan, but all marine commodities. Blue economy business model is not only oriented toward blue economy due to Indonesia’s marine resource po­tency. The business model is not only oriented to­ward one or two commodities, like seaweed or car­rageenan, but all marine commodities. Blue economy business model is not only oriented toward business competition, cost, and others, but toward added value and national income. Indonesia is world’s larg­est seaweed producer. While, China is still importing seaweed from Indonesia. But, Chine should depend on seaweed import from Indonesia not only for pro­duction of carrageenan, but for textile raw materiel, fish feed, animal feed, and other. “China will need Indonesia as it has planned to replace cotton raw material with seaweed for textile production. Indonesia has its seaweed production, therefore Indonesia has a strength point if compared to China. This is the e­ssence of the application of blue economy”, Pauli told Business News (11/28).

Processing business strategy and model for seaweed as textile raw material could become Indo­nesia’s bargaining position which is stronger than China. Moreover, the Minister of Marine and Fisher­ies, Sharif C. Sutardjo, will visit China in the next two weeks. “Maybe China not yet knows about this busi­ness model during our discussion with officials of the Ministry of Marine and Fisheries”.

Pauli held a focus group discussion on Blue Economy in Jakarta for two days. He acknowledged himself as an entrepreneur who is much involved in environmental sector. The blue economy is substantial for environmentally friendly business and investment development. Pauli considers that blue economy­ based economic development could promote devel­opment of waste-free production system. In 2010, Pauli published a book titled: The Blue Economy: 10 years, 100 Innovations, and 100 Million Jobs. This book was published from The Club of Rome Report in 2010, endorsed by the United Nations Organization for environmental affairs, The book has been translat­ed into several languages, amongst others, Chinese and Arabian. Pauli and his work team are now prepar­ing translation into Indonesia language. “I acciden­tally met an Indonesian abroad who has translation skill”.

On the other hand, Pauli also explained about the possibility that Indonesia will reduce import of an­imal and fish feed from Chile. Seaweed is a raw mate­rial to replace protein in animal feed. So, in this case, it is clear that blue economy is not limited to one or two commodities, but more than that. The most strik­ing example is Indonesia’s seaweed potency which is very substantial. Seaweed is not just a raw mate­rial for agar, carrageenan, textile raw material, but it is also for feed, maggot which is nutritious for de­velopment of fish feed, and other. “Blue economy is always within the context of marine resources as a whole”.

Minister of Marine and Fisheries, Sharif C. Sutardjo, said that Pauli’s explanation regarding blue economy will encourage all stakeholders to develop a more progressive business model. “All marine potencies have been available in Indonesia. But, the one which is lacking is our bigger attention to the asset and potency. The meeting with Professor Pauli encourages us to process the blue-economy-based potency”, Sharif told Business News (11/27).

Blue economy business model has been ap­plied in some countries in the world. The Indonesian government and all stakeholders, including the private sector, must build a similar commitment with other countries who have already applied the blue econo­my concept. “Because the result is for public interest and increase of income, the Ministry of Marine and Fisheries has formed a work team, the Directorate of Marina, Coasts, and Small Islands has made pilot projects in some islands. The coastal community will be accompanied in processing the potency”.

Another commitment is about coral reef con­servation in Asia Pacific region where there is a mas­sive involvement of Indonesia. Sustainable marine and coastal resources by emphasizing on balance between economic development and environmental support as a real action of the saving of biodiversity in the Coral Triangle. Process of acceleration and expan­sion of marine and fisheries development needs the touch of blue economy principles so it could increase added value that can have a consequence on increase of income of industries and marine and fisheries en­trepreneurs not by harming the environment. This is due to similarities in the CTI-CFF guideline principles. The blue economy prioritizes biodiversity conserva­tion approach and it is in favor of the communities. Integration between the two principles is expected to create more economic activities in marine and fisher­ies sector.

Business News - November 28, 2012