Turning the tide: Advancing Indonesia’s blue economy through ocean-based mitigation actions

Indonesia’s ocean is central to its climate and economic future.

As the world’s largest archipelagic nation, home to 17 per cent of global blue-carbon ecosystems, Indonesia has an unparalleled opportunity to align its blue economy ambitions with its climate goals.

With over 17,000 islands and three quarters of its territory composed of marine areas, the country relies on the health of its ocean for its prosperity and resilience.

Indonesia’s blue economy is valued at over US$1.3 trillion, covering fisheries, tourism, maritime transport and renewable energy.

Realising this potential requires treating the ocean as more than an extractive economic sector – a foundation for sustainable growth and climate resilience.

Building on Climateworks Centre’s 2023 Sea of Opportunity report, which explored why Indonesia’s ocean matters for climate mitigation actions, this report focuses on how to operationalise that potential by linking it to the blue economy.

It outlines the concrete steps needed – through governance, finance and regional cooperation – to translate ambition into measurable progress.

Healthy marine ecosystems and decarbonised maritime industries generate a double dividend: not only reducing emissions but also strengthening livelihoods, contributing to Indonesia’s high ambition for economic growth.

Protecting mangroves, seagrasses and coral reefs provides vital value to ecosystems, while decarbonising ports, vessels and offshore industries enhances competitiveness and creates skilled employment.

The case for integrating the ocean into Indonesia’s climate strategy is clear, but the challenge lies in execution.

Practitioners, policy-makers and blue carbon stakeholders highlight that barriers are not conceptual but operational: fragmented governance, uneven data, uncertain science and weak coordination.

These barriers, however, are fixable. Strengthening Marine Spatial Planning (MSP), improving data systems and building institutional coherence will help Indonesia move from policy ambition to measurable results.

One central operational gap lies in finance. Despite strong ambition, pathways to translate ocean-based opportunities into investable projects remain limited.

Embedding blue-economy sectors within a sustainable finance taxonomy, or Taksonomi Keuangan Berkelanjutan Indonesia (TKBI), can signal policy clarity to banks and investors, aligning financial flows with national priorities.

The taxonomy will provide clear guidance for investors on sustainable, regenerative and sciencebacked economic activities in sectors such as fisheries, tourism, conservation and maritime industries.

Linking finance with governance tools such as MSP, ocean accounting and data transparency will also help ensure integrity and scalability.

Indonesia’s climate mitigation strategy is increasingly aligned with blue economy priorities, showing the ocean’s critical role in contributing to national emissions-reduction goals and sustainable development.

Areas of high alignment include maritime decarbonisation, blue-carbon conservation and marine renewables, and show where Indonesia can leverage the blue economy for its climate commitments while supporting sustainable growth and livelihoods.

As the largest economy of the Association of Southeast Asian Nations (ASEAN), Indonesia can play a powerful role in shaping regional ocean–climate action through its leadership on the blue economy.

The ASEAN Blue Economy Framework offers a regional platform for collective ocean–climate action. By advancing blue-carbon conservation and offshore renewable energy cooperation, Indonesia can help ASEAN effectively align economic development with climate goals.

Coordinated MSP and cross-border energy infrastructure would not only strengthen regional security and food systems but also anchor Southeast Asia’s path to net zero emissions by 2050.

This report identifies three pillars essential to realising Indonesia’s ocean–climate ambition:

1. GOVERNANCE:
   Strengthen national frameworks and MSP to align policy, science and livelihoods.
2. FINANCE:
   Mobilise sustainable blue finance through TKBI integration, sectoral prioritisation and data-driven investment frameworks.
3. REGIONAL COOPERATION:
   Scale Indonesia’s leadership within ASEAN through shared data systems, harmonised measurement, reporting and verification (MRV) standards and collaborative blue-energy initiatives.

Analytical framework: Turning Indonesia’s ocean–climate ambition into action

Challenge	Knowledge base (input)	Actions		Output	Outcome
Uncertain science Fragmented governance Suboptimal finance and investment	Science and technical capacity Data and accounting systems Local knowledge Finance and market insights	GOVERNANCE + Commitment to low-carbon blue economy+ + MSP alignment with the nationally determined contribution (NDC) FINANCE + Inclusion of blue economy in the financial system + Ocean data-investment linkages	REGIONAL COOPERATION + ASEAN-wide blue ecosystem and green shipping for climate actions + ASEAN-wide renewable energy and energy efficiency cooperation	Integrated ocean governance Unified ocean and climate data Mobilised finance for blue economy ASEAN-wide alignment on blue economy and climate targets	Emissions reduction Ecosystem resilience Sustainable economic growth

Taken together, these pillars create a clear, actionable roadmap for Indonesia to convert its vast ocean potential into meaningful climate outcomes.

Delivering on them will allow the country to move from vision to implementation, turning its maritime domain into a cornerstone of sustainable prosperity and global leadership in ocean-based climate action.

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