Journal of Indonesian Economy and Business Volume 40.
Number 2, 2025, 256 Ae 274
E-BLUE: IMPLEMENTATION OF AN INTEGRATED BLUE
ECONOMY ECOSYSTEM TO INCREASE COASTAL MSMEs
COMPETITIVENESS
Tito A.
Perdana1*.
Nanda A.
Purusa1.
Rudi Kurniawan1, and Tito W.
Suryawijaya1 Department of Management.
Faculty of Economics and Business.
Universitas Dian Nuswantoro.
Semarang, 50131.
Indonesia
ABSTRACT
ARTICLE INFO
Introduction/Main Objectives: This study aims to determine the implementation and the right business strategy for sustainable fisheries that adopt the "E-Blue" blue economy ecosystem model.
Background Problems: The challenges faced in developing a booming blue economy emphasize the need for strong commitment and collaboration between central and regional governments, to support overall development.
The background problems also recognize technologyAos impact on the activities of micro, small and medium enterprises (MSME.
and stress the significance of quick responses to these changes.
Novelty: This lies in the studyAos exploration of the role of digital transformation in sustainable fisheries within the blue economy framework.
It emphasizes the need for commitment, innovation, and technological adaptation to ensure the success of blue economy-based development.
Research Methods: This qualitative study adopts a narrative approach to gather data on sustainable fisheries strategies aligned with the blue economy ecosystem model.
The research utilizes this approach to gain insights into the development possibilities for the research object.
Finding/Results: The study's findings highlight the crucial role of the governmentAos commitment and decisive actions for the successful development of the blue economy in the fisheries sector.
The study underscores the potential of digital transformation as a bridge between stakeholders and consumers, enabling efficient supply chain management and diverse product processing for community welfare.
Conclusion: The study concludes that successful blue economy development relies on strong collaboration between governments, innovative policy programs, and swift responses to technological changes.
The study emphasizes the importance of continuous innovation to enhance competitiveness and market access in Indonesia's fisheries sector.
Article information:
Received November 29.
Received in revised version May 2.
Accepted June 20.
Keywords:
Blue economy.
Central Java.
coastal MSMEs.
digital transformation.
JEL Code:
O13.
O14.
Q22.
Q57
ISSN:
ISSN 2085-8272 .
ISSN 2338-5847 .
* Corresponding Author at Department of Management.
Faculty of Economics and Business.
Universitas Dian Nuswantoro.
Jl.
Nakula I No.
Pendrikan Kidul.
Kec.
Semarang Tengah.
Kota Semarang.
Jawa Tengah 50131.
Indonesia.
E-mail addresses: titoperdana26@gmail.
, nandapurusa@dsn.
, kurniawan@dsn.
, 211202080011@mhs.
https://doi.
org/10.
22146/jieb.
https://journal.
id/v3/jieb CopyrightA 2024 THE AUTHOR (S).
This article is distributed under a Creative Commons Attribution-Share Alike 4.
0 International license.
Journal of Indonesian Economy and Business is published by the Faculty of Economics and Business.
Universitas Gadjah Mada Journal of Indonesian Economy and Business.
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No.
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INTRODUCTION
As we know.
Indonesia's marine and fisheries industry offers unique marine resources and natural beauty surrounded by waters both large and small, such as large rivers, seas and coasts, which are potential sites for economic development.
Indonesia's marine and fisheries industry refers to the blue economy concept, which has been proposed in the Medium-Term Development Plan for the Maritime and Fisheries Sector 2013 Ae 2025 (Lynn & Bt Fathi, 2.
The blue economy is an activity that significantly contributes to the marine and fisheries industry through a sustainable innovation process, based on natural systems, without destroying the natural environment.
The blue economy concept is an industrial development that focuses on innovation and creativity using the resources owned, by paying attention to an environmental economic system that is explorative, ecofriendly and in line with sustainable economic Sustainable economic growth is a process of change toward sustainable investment that is equitable, by prioritizing technological development to meet human needs without destroying natural systems (Aqmala & Putra.
In the context of the blue economy, sustainable development goals must be inclusive and eco-friendly, and eco-balance concerning maritime affairs must be maintained.
Implementing the blue economy is basically related to the survival of communities where most of the population earn their living as fishermen or fish The blue economy concept also focuses on utilizing all eco-friendly resources, not damaging the environment, and minimizing the accumulation of waste.
It works very well if those involved in it are self-aware and act to protect both business and the environment.
Proper fisheries business management is the main factor in successfully implementing the blue economy (Wajdi et al.
, 2.
One of the coastal areas in Indonesia where most of the population works as fishermen or fish farmers is in Central Java, which has a fisheries education tourism development.
In this village, the people are enthusiastic about developing the fisheries sector, either by searching in the sea or by creating a fish cultivation site, including nursery activities and fish rearing activities, so that the community can independently produce seafood.
The existence of this fisheries tourism village can open up employment opportunities for the local community by using their own gardens to develop fish farming areas (Aqmala & Putra, 2.
This independent fishery in Central Java adopts the blue economy concept by creating a fish farming business, while still paying attention to cleanliness and protecting the environment by not polluting or destroying the existing environmental ecosystem.
From making fish food, breeding fish, cleaning fishponds, harvesting fish and processing them, the work is carried out carefully so as not to cause air pollution due to smelly waste water.
Waste from making fish food is reprocessed into new, more valuable Independent fisheries usually emerge idealistically from individuals hoping to improve their familyAos economy.
From individual thoughts, a concept will create fisheries cultivation businesses by inviting other residents to cultivate according to their capacity and abilities (Aqmala et al.
, 2.
Sustainable fisheries can be a business opportunity with a positive economic multiplier effect, a chance to promote business and create Increasing cooperation in the maritime and fisheries sectors, which carries the blue economy concept, can build and accelerate economic Indonesia has the potential to develop its economy, because its marine resources are the countryAos largest commodity and main asset.
Even with Indonesia's coastal areas being eco- Perdana, et al.
friendly and maintaining balance, most of the local population earn their living as fishermen and support the Indonesian economy through their catch (Psycharis et al.
, 2.
Governance in the fishing industry must be supported by digital transformation, because digital transformation can accelerate integration between the marketAos needs and demands.
For example, fulfilling the need for fish food, fresh fish, and various other products can be done quickly through a digital application using just one touch, allowing fishermen to sell directly without going through mediators whose prices sometimes do not match expectations (Risgiyanti et al.
, 2.
Using appropriate technology for the fishermen can provide sustainable results that are both efficient and optimal.
One example of what fishermen can do with digital transformation is to create market share and sell raw and processed products through the marketplace.
Therefore, adapting new technology for fishermen needs special attention from the government, so that all the fishermen can use and operate it wisely.
This would allow fishermen and fish farmers to process raw materials into derivative products without leaving waste, in accordance with the blue economy concept (Cutanda & Llopis, 2.
The key to sustainable economic success is good governance in the marine and fisheries In other words, it includes success seen from various aspects, including environmental sustainability and food security to increase people's incomes.
The success of the blue economy ecosystem depends on eco-friendly industrialization in the fisheries and marine sectors being evenly distributed and supported by open access to labor needs, digital technology, creativity and product innovation, and chain improvements from upstream to downstream.
This allows the economic cycle of people's businesses, especially in the fisheries sector, to develop continuously and sustainably (Hartarto & Wardani, 2.
The main problem faced by independent fish farmers in Central Java is the low role digital transformation plays in developing independent fisheries activities, due to difficulties in accessing knowledge and support, either from the community itself or other institutions that should have a role in developing sustainable community businesses.
Kok et al.
says creating a sustainable, eco-friendly, technology-based fishing business is the biggest obstacle for fishermen and fish By processing resources into all kinds of products, both primary and derivative, sustainable fisheries resources can positively impact the peopleAos income, and serve as an example and role model for similar businesses to grow in Micro, small and medium enterprises (MSME.
in the fisheries sector must be able to create innovation through the support of digital transformation (Azmy, 2.
Several innovations can possibly be developed as follows:
Table 1.
Digital Transformation of Fisheries Businesses Aspect Financial Technology (Fintec.
Innovative Technology Digital Processing & logistic E-commerce Source: Bonkoungou & Nesterov .
Information Access capital through crowd funding.
Automatic fish Feeding and air control automatic equipment regularly to determine water quality Creating processed fish products that are healthy and ecofriendly automatically.
Marketing fishery products, processed fish and derivatives through e-marketplace.
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The blue economy concept seeks to ensure the sustainability of coastal and marine resources and environments, and encourage economic growth in the marine and fisheries industry, since Indonesia is a maritime country.
Several countries and regions have proposed strategic frameworks and action plans to develop the blue After five years of implementing the blue growth strategy, the European Union issued a report reviewing what has been learned and Five aspects are explained in that report, including: .
encouraging growth in five focus areas, including blue energy, aquaculture, coastal and marine tourism, blue biotechnology, and seabed mineral resources.
the benefits of marine data, spatial planning and maritime supervision to facilitate blue economic growth.
promoting a partnership approach.
increasing investment.
creating a blue growth strategy in line with future challenges (Yang et al.
, 2.
The study by Trishch et al.
also proposed principles for developing the marine and fisheries industry, based on the blue economy concept, including formulating comprehensive economic and environmental protection policies, encouraging regional economic development, realizing sustainable development by promoting clean production systems and encouraging creative and innovative investment.
If this potential resource is managed sustainably, it will have positive economic and environmental implications.
Studies on the contribution of the marine, fisheries and coastal tourism sectors to Indonesia's economic growth have been carried out several times.
However, these studies are regional or only focus on specific areas, such as the one by Kerner & Kitsing .
Apart from that, the study above has yet to thoroughly examine the supporting sectors for the blue economy in Indonesia.
There are few studies on the blue economy in Indonesia, because this concept is relatively new, and Indonesia itself is still in the process of determining the policies required to implement it.
Studies in Indonesia on industrial sectors supporting the marine economy that have implemented the blue economy concept include those by Abdul-Talib et al.
, but they still specifically examine one industrial sector, which is micro in nature.
Macro studies by Borojo et al.
state there are several studies that have raised the concept of the blue economy and its role in Indonesia's economic development.
However, the previous studies has yet to explain the challenges Indonesia faces in implementing blue economy policies to increase its economic growth, or explain the strategies that need to be implemented by the government.
It also has not described the financial contribution of industrial sectors in the maritime industry.
This study will discuss Central Java's potential and challenges in developing a blue economy ecosystem model to increase the country's economic growth.
The issues that will be raised in this study include: .
how much Indonesia's blue economy support sector contributes to the economy.
what are the challenges of developing the blue economy in Central Java.
what strategies are being implemented by the government to develop the blue economy to create a sustainable economy in Indonesia.
Based on the background of the problems explained above, this research will explore the implementation and appropriate business strategies by utilizing the role of digital transformation in increasing the economic resilience of sustainable fisheries, in accordance with the blue economy concept, which is suitable for developing the independent fisheries in Central Java.
Research question of this research includes:
How is the implementation of the blue economy concept in developing a sustainable fisheries business ecosystem in the coastal areas of Central Java? What are the main challenges coastal MSMEs, especially independent fish farmers, face in adopting digital transformation based on the blue economy ecosystem? To what extent does the supporting sector of the blue economy contribute to the growth of the Indonesian coastal economy, especially in the context of developing micro and small businesses in the fisheries sector? LITERATURE REVIEW Blue Economy The concept of sustainability in a business is a concept that has been adopted for a long time, and is used as a basis for many parties to create a better long-term economy by paying attention to the aspects of the economy, society, culture and environment that are integrated(Panjaitan.
Adam, & Hasan, 2.
In line with this concept, the primary contents of the blue economy adhere to the principle of business sustainability, how the business can run well, be beneficial not only for the owner but be able to open up employment opportunities for other people, especially residents, with an eco-friendly existence that is well maintained.
The blue economy in Indonesia is more embedded in maritime businesses, or those related to fisheries, because Indonesia is a maritime country composed of islands and oceans with abundant potential marine resources.
One of the main drivers of change in the economy is the focus on strategies and concepts for adopting the principles of the blue economy (Navarro-Chyvez et al.
, 2.
The blue economy was originally an idea initiated by Hakam et al.
, which utilized the potential of natural ecological systems, without destroying them, to build a sustainable Perdana, et al.
economy and create sustainable products, manufacturing, and ecosystems.
The draft blue economy aims to provide not only an understanding but also a challenge for entrepreneurs to develop abundant fisheries resources that are more profitable, efficient and effective, and how to utilize the existing potential, create products with high retail value and quality, using workers from far away areas.
Hakim et al.
states that a better understanding of the contours and conditions of the local area or environment will create an understanding and pattern of care or management that is appropriate and good for the surrounding environment.
It will also create a business that is beneficial and does not damage the environment with pollution from the process, or production waste, both on land and at sea.
Blue Economy Policy in Indonesia Sustainable fisheries .
lue econom.
is a good concept for balancing the economy and the environmental ecosystem.
Maintaining the environment, not only keeping it but using it wisely, can be beneficial and not damage the environment around the business (Sambodo et , 2.
The objectives of the blue economyAos policy are as follows:
To increase the efficiency of natural resources, especially marine resources or fisheries, without causing pollution to the surrounding environment.
Increasing the use and management of natural resources can be done jointly and responsibly.
It can be used as a guide to increase the diversity of economic activities that add value and have high sales competitiveness to create a good value chain from upstream to It can be used as a guide to increase local communities' access to economic resources.
It can encourage the acceleration of the Journal of Indonesian Economy and Business.
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development of more innovative and creative investment by creating a business or product that meets the needs of the local community.
Implementation of the Blue Economy in Various Countries and MSMEs Sustainable Business Activities Sustainable fisheries are conceptualized in developing fisheries businesses that do not just process available resources into economically valuable items, but develop these resources into creative and innovative companies that are economically resilient by balancing nature and the surrounding environment.
Needs and dependencies will be completed with selfawareness to protect each other's companies and the environment (Garcya-Alcober et al.
, 2.
Several countries have implemented, or are trying to apply, the concept of the blue economy for managing their marine resources and fisheries activities.
Since 2015, to utilize its unexplored marine resources.
Bangladesh has taken the initiative to develop a blue economy by starting several consultations and workshops on the blue economy (ZenzeroviN et al.
, 2.
The blue economy policy is also being followed by Bangladesh's neighboring countries in the South Asian regional area, such as Sri Lanka (Liu et al.
, 2.
India (Xia et al.
, 2.
, and Pakistan (KatAoykovy & Luptykovy, 2.
Blue economy development has also occurred in countries on other continents, namely Africa (Nigeria [Moncada-Paterny-Castello, 2.
South Africa [Hatfield et al.
, 2.
Kenya [Sharku & Kumi, 2.
and Tunisia [Donaldson & Mehra, 2.
) and APEC member countries, as well as European Union countries (Schlaak et , 2.
The blue economy has become an essential goal of APEC countries, to advance sustainable ocean and coastal governance to drive economic growth, including increasing marine protected areas, addressing illegal fishing, and facilitating sustainable regional trade in fisheries.
APEC is committed to integrating environmental considerations in all sectors and at all levels of its work, moving toward trade liberalization and facilitation (Hsieh et al.
, 2.
European Union countries coined the term blue economy at the United Nations Conference on Sustainable Development, which implements a blue growth The European Union released the report Blue Growth Strategy Toward More Sustainable Growth and Jobs in the Blue Economy, which examines what has been learned and achieved since the emergence of the blue economy, what is happening and what is missing.
ASEAN
community leaders have committed to promoting the blue economy through the ASEAN Leaders' Declaration on the Blue Economy (Doan et al.
, 2.
The declaration defines the blue economy as the sustainable, resilient, inclusive use, governance, management, and conservation of marine and coastal resources and ecosystems for economic growth in various sectors.
ASEAN
member countries have committed to promoting and advancing the blue economy in their respective countries in the United Nations Convention on the Law of the Sea (UNCLOS), the 2030 Sustainable Development Agenda, including the Sustainable Development Goals (SDG.
, and the ASEAN Charter.
From the experience of the countries above, the business activities that need to be developed to implement the blue economy concept can be explored (Markova.
Taysever, & Angelov, 2.
The blue economy represents all the economic activities related to the oceans, seas, or coastal areas that are designed to encourage economic growth and development, increase employment opportunities, and improve the environment, while maintaining the ecosystem.
These business activities include aquaculture, fisheries, tourism, transportation, maritime shipping, shipbuilding, marine biotechnology, marine energy, and mineral extraction (Cao et al.
, 2.
Previous Studies Until now, the interaction between growth and the blue economy has generally been seen in the trade-off between the economy and the Life that depends on water/marine resources can significantly contribute to food, energy and bio-based products.
However, marine ecosystems are subject to increasing pressure and competitive use due to resource overexploittation and pollution (Hirsch, 2.
The overall growth of the world economy and the economic progress of most developed market economies has led to the increased use of natural resources and, at the same time, increased environmental depletion and pollution.
In a sustainable blue economy, each country must find the best way to balance sustainability and economic growth to optimize maritime resources, while ensuring maximum environmental benefits (Hanoteau.
Jarchow et al.
stated that South Asia, especially Bangladesh, has begun implementing the concept of a blue economy.
However, the region still needs to publish data on the economic and social value of ocean-based industries, or any assessment of the possibilities, prospects or types of industries and activities that can be carried out in line with the blue economy concept.
The lack of available data limits the performance predictions of the industries under consideration.
In line with this.
Lee .
stated that the blue economy can contribute significantly to economic growth if a country's blue resources are mapped and wellintegrated within a robust institutional framework and based on concrete policies and Caravella et al.
, who conducted a study of the South Asian Association for Perdana, et al.
Regional Cooperation (SAARC) countries, concluded that countries in the region have the potential to implement a blue economy, which will lead to economic growth, but this requires strong political commitment, concrete research, public awareness and positive attitudes.
So, if SAARC countries use their resources properly, they will experience faster progress.
This is supported by Aydin et al.
, who state that there has been no attempt to calculate how much the blue economy contributes to India's Gross Domestic Product (GDP) because this concept did not receive government attention until recently.
The European Commission formulated a "blue growth strategy" to harness the possibilities of Europe's oceans, seas and coasts for growth and jobs.
This strategy identifies five focus areas for blue growth: blue energy, aquaculture, maritime, coastal and cruise tourism, marine mineral resources, and blue Then, the progress report on implementing the strategy shows that research and innovation has always been the main focus of the European Union, marked by the budget allocation for marine research and innovation projects amounting to USD 911.
68 million from Meanwhile.
China's blue economy policy focuses on growing its maritime economy through cross-sectoral planning and spatial planning processes for economic development.
However.
China's emphasis is on something other than environmental protection.
Although the Chinese government has taken several necessary steps to better protect marine ecosystems, its primary focus remains on economic development (Syogo, 2.
A study by Hesda .
found that, despite the tremendous potential to ensure ocean sustainability, the growth of the blue economy presents several The lack of standard, agreed blue economy growth goals is one of the most Journal of Indonesian Economy and Business.
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apparent obstacles.
However, de la Fuente .
says that when maximizing "inclusive" economic growth derived from marine and aquatic resources, it is impossible to reduce poverty unless the health of the marine ecosystems is guaranteed and preserved, because it is crucial for food security, livelihoods and the METHOD.
DATA.
AND ANALYSIS This type of research is qualitative research, which aims to investigate, discover, describe and explain problem phenomena more comprehendsively (Dvorak et al.
, 2.
This research used a storytelling or narrative approach to obtain data related to sustainable fisheries strategies that match the concept of the blue economy, which could then be developed on the research In qualitative research, the potential contained in the object to be researched can be explored, as this type of research relies more on the uniqueness and superiority of the research object obtained from extracting information in the field, rather than on generalizing the problem (Nguyen et al.
, 2.
The research location was in Central Java, where most residents carried out daily activities as fish farmers by creating an independent catfish fishery in front of each resident's house to obtain additional finances.
The subjects of this research were considered to be the key informants or figures.
Local micro, small and medium enterprises (MSME.
who own catfish fishing businesses were deemed to have sufficient information related to the themes raised in this research, and could provide essential business data about environmentally based fishing activities.
The data collection technique in this research was purposive sampling, which used unique criteria or specific considerations in drawing the sample.
In this research, there were criteria for consideration, namely that the informant was a business actor with a catfish fishery business and continued it until the research was carried out, and had the skills and adequacy to provide information that would be explored further.
We obtained a purposive sample of 191 coastal MSMEs registered as official beneficiaries of the Central Java Provincial Office for Cooperatives and MSMEs.
These include micro and small enterprises engaged in fish farming, seafood processing, fish product marketing, and eco-tourism with fisheries integration.
The selection followed a purposive sampling technique, targeting MSMEs that met the following C Actively engaged in marine and fisheriesbased business activities .
, aquaculture, seafood processing, fish feed production, coastal eco-touris.
C Operate within designated coastal subdistricts in Central Java.
C Willing to participate in structured interviews and provide information related to business practices, digital adoption, and eco-friendly C Representing varied levels of digital adoption and sustainability practices.
The type of data was primary data, in the form of information provided by the informants, which was obtained directly from the in-depth interview process carried out during the activity.
Meanwhile, the data source was obtained from informants who were considered competent and had mastered the information related to the data The Interview questions for this research includes: (Murashima, 2.
Understanding Economy Implementing Blue In your opinion, has your business currently implemented environmentally friendly and sustainable principles? If so.
Perdana, et al.
can you explain how it is practiced? How do you maintain environmental sustainability in the production process .
or example, waste management, feed use, or raw material.
? Is there any support or training from the government or other parties related to developing a business with a blue economy concept? Business Conditions and Challenges What are your main challenges in running a fisheries business in this coastal area? What are the market conditions for your products? Are there any difficulties in distribution, promotion, or access to Do you have difficulty accessing financing or capital? If so, where do you usually get financial support from? Ecosystem Support & Expectations In your opinion, what kind of assistance do coastal MSMEs need most to be more Are you open to collaborating with other MSMEs in cooperatives or joint business What are your expectations of the government or other institutions in developing sustainable and integrated fisheries The key elements in the success of the blue economy are innovation, markets, cash flow, and Innovation is the process of creating new products and looking for opportunities for sustainable economic development according to the offerings needed by the market.
Innovation influences new cash flows that come from the Additional cash flows are supported.
These elements can be described as follows:
Figure 1.
The Success Key Elements in Blue Economy Ecosystem Innovation Potential Market Cash Flow Source: Qiao .
The data analysis method uses the analytic hierarchy process (AHP) to describe the relative importance of one element above another.
This value includes a comparison scale between one and nine.
A scale with nine units is acceptable and reflects how we can differentiate the intensity of the relationship between the This number describes the relative importance of an element compared to other The next step was to develop an ecosystem model.
The AHP was used to make it easier to determine the hierarchy of decisions (Aliekperova & Aliekperov, 2.
Applications in the Development of the "Blue Economy" Ecosystem Model include:
- Mapping component dependencies .
esource availability, environmental impact, economic added value, community involvemen.
- Determining intervention priorities .
hoosing the most important environmentally friendly technologies, financing schemes, or investment locations firs.
- Integrating cross-disciplinary experts .
iologists, economists, entrepreneurs, regulators assessing criteria together through pair wise comparison, so that decisions are collective and transparen.
The Analytic Hierarchy Process (AHP) offers several advantages, making it an effective tool for complex decision-making.
First.
AHP is intuitive and structured, allowing for the breakdown of significant problems into smaller.
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more manageable components for analysis.
Additionally.
AHP accommodates quantitative and qualitative data using a comparison scale of 1 to 9, which enables assessors to express their preferences more flexibly.
A significant feature of AHP is its consistency test, which ensures that the assessments made do not contradict each other logically.
However, the method does have some limitations.
For instance, the number of pairwise comparisons increases exponentially with adding more criteria or alternatives, making it less efficient when tackling scenarios with many elements.
Furthermore.
AHP relies on the subjectivity of the assessor, which can introduce bias into the final results.
Nevertheless, this bias can be minimized through panel discussions, expert validation, and sensitivity analysis to test the decisions' stability.
RESULT AND DISCUSSION
Characteristics of the Central Java Sea Coastal MSMEs Ecosystem The process of the growth of micro, small and medium enterprises (MSME.
in the coastal areas of Central Java, based on findings in the field, shows that business actors develop products based on marine biological resources for several reasons.
Businesses are also passed down from generation to generation.
Coastal MSMEs also provide benefits, so they can increase family incomes, as they can open up employment opportunities for coastal communities, thereby reducing the number of The abundant availability of primary raw materials is why coastal MSMEs develop these products.
Another reason these businesses operate is because there are natural and religious tourism destinations that attract In providing the primary raw materials, in the form of marine biological resources, the business actors obtain them in various ways, either by making direct purchases at coastal village markets and paying in cash, or by placing orders directly from collectors who are also paid in cash.
The main obstacle these business actors face is the need for more raw materials, due to reduced fishermen's catches caused by inclement weather conditions.
The business capital used by these marine coastal MSMEs comes from capital obtained independently or personally by the business actors, loan capital from relatives or close family, and loan capital from formal financial institutions or village cooperatives.
The creative industryAos products are marketed in various ways, including:
Sold directly to small and large traders in village and city markets using land transporttation.
Entrusted to several restaurants and outlets/ gift shops typically found on the Central Java Selling directly to consumers without using a sales force.
Marketing to several agents in various cities/regencies in the North Coast region (PANTURA) via land transportation, where MSMEs bear the transport costs.
Contribution of the Blue Economy Integrated Ecosystem to the Competitiveness of Central JavaAos Economy The high competitiveness of coastal MSMEs is influenced by extensive market networks, competitive quality products, affordable prices, official legality, and interactive promotional programs supported by a good market ecosystem, regardless of the conditions.
In the last two years, the seafood market has been dominated by products from coastal MSMEs in Central Java, which have contributed a market share of 3040% at the national level, especially in packaged products supplied to souvenir and tourism shops.
The practical business performance of coastal Perdana, et al.
MSMEs is evidence of increasing practical ecosystem configurations that provide facilities for the development of knowledge, which is the basis for competitive advantage that cannot be created in advance if a good ecosystem chain does not support it.
This must be continuously supported and fostered by the government and other stakeholders.
Product innovation can make a real contribution to increasing competitive advantage, because coastal MSME products attract consumers, are easy to store, and have a good reputation in the eyes of consumers.
excellent blue economy ecosystem will encourage the ability of coastal MSMEs to penetrate national and international industries, supported by the production of much higher quality products, based on applicable standards.
science and technology, such as offshore wind farms, tidal and wave energy platforms, marine aquaculture, seabed mining for metals and minerals, marine biotechnology, and bioprospecting.
Environmental services such as coastal protection also significantly contribute to economic and other human activities (Biscione et al.
, 2.
However, the economic potential of Central Java, which originates from the sea and its resources, includes its fishing industry (Zinecker et al.
, 2.
, the marine-based food processing industry, coastal tourism .
an Putten et al.
, 2.
, trade, transportation and logistics (Yu & Xiao, 2.
Marine fisheries, aquaculture and fish processing represent the most critical sea-based sectors, contributing 83% of the total added value of Central Java's six blue economy sectors.
In 2022.
Indonesia produced 67% of the total added value from six sectors across the ASEAN In particular, 84% of the added value generated from marine fish processing in ASEAN countries came from Indonesia, as did 73% of the added value of marine fisheries and 54% of the added value of mariculture.
Indonesia also has the most significant added value from sea transportation (USD 2.
6 billio.
and sea passenger transportation (USD 2.
among ASEAN countries (Brosio et al.
The marine economy has diverse and varied components in each Indonesian province, as they have a collection of sectors that directly or indirectly depend on marine resources.
The sectors include traditionally exploited marine resources and the use of the sea for tourism, education, seaports and shipping.
Based on the internal and external environmental conditions for the existence of the blue economy industry, and the increasing competitiveness of MSMEs, the appropriate alternative model is institutional innovation through "E-Blue: A creative and innovative integrated blue economy ecosystem model.
" The primary considerations for the integrated blue economic ecosystem development model in the coastal areas of Central Java are: .
the differences between the characteristics of wet-processed products .
ermented-shrimp and shrimp-past.
and dry products .
the micro, small and medium enterprises and primary raw material providers are close to each other and interact with each other in an area that forms a .
they have the potential to form a small-scale Joint Business Group (KUBE).
Schematically, the model for developing an integrated blue economic ecosystem, based on biological resources in the micro, small and medium enterprise industrial centre community in Central Java, is shown in Figure 2.
The sectors also include ocean-based sectors that have recently emerged due to advances in Blue Economy Industrial Development Model in the Coastal Area of Central Java Journal of Indonesian Economy and Business.
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Figure 2.
E-BLUE : An Integrated Blue Economy Ecosystem of Central JavaAos Coastal MSMEs Sales Performance End Customers Goods & Services Tax Governments Policy MSMEs Policy Big Companies Production Factors C Human Resource Management C Raw Materials C Business Capital C Creativity & Innovation and feebased Investment Capitals Remuneration of Production Factors C Rent C Wages C Profit interest rate spread and fee-based income Financial Institutions *Box *Circle Policy Investors = Players = Outputs or linkages The impact of developing an integrated blue economic ecosystem development model, based on the marine biological resources available to the micro, small and medium enterprise industrial center community in Central Java Micro, small - Improve their expertise/skills as a result of interaction and interrelation between industrial groups through socialization and learning together to develop potential products within the cluster.
- Obtain potential economies of scale due to several factors, namely .
specialization in processed products.
purchasing primary and complementary raw materials, when carried out collectively in clusters, has an effect on the efficiency of transportation costs and lower raw material prices due to the large capacity.
creating a joint market for processed products, both directly to consumers and supplying the needs of large companies.
- Access to the information flow in the ecosystem is relatively easier, especially Perdana, et al.
accessibility to financial/ banking institutions and investors for providing business capital.
access to the government regarding formal legalities for creative industries in the form of processing business permits.
information relating to other service - Establish access to financial institutions and investors to increase business capital Financial institutions - Obtain income from MSMEs and Big Companies in the form of interest rate spread and fee-based income.
- Distribute credit to small industrial groups, large-scale industries and investors.
- Business actors can generate profits from their business activities, thus providing adequate wages for their workers to improve their welfare.
- Assisting small-scale creative industries regarding their financial management.
Investors Government - Supporting business capital for MSME - Positive role in government performance because creative industries in small industrial centers have formal legality in the form of business permits.
- Government regulations for small-scale and large-scale industries/companies and investors in developing creative industries, so that they obtain income through taxes.
Big Companies - Establish mutually beneficial business partnerships with small-scale industries, both in the form of raw materials, semifinished products, and finished products with the expected quantity and quality.
- Contribute to providing market information for MSMEs products.
End Customers There is a guarantee of obtaining quality and healthy biological resource-based seafood The results of the identification of the driving and inhibiting factors for the development of an integrated blue economy ecosystem model, based on the marine biological resources available to Central JavaAos micro, small and medium enterprises are as follows:
Table 2.
Encouraging and Inhibiting Factors for the Development of Integrated Blue Economy Ecosystem Model Driving Factors Obstacles The sea coast is dominated by wet processed products and dry products MSMEshave experience from generation to Processed products based on biological resources have flavors that are in great demand by consumers Availability of raw materials for MSMEs Dependence of raw material suppliers .
on natural wisdom .
MSMEs production locations are still scattered Production houses are not yet representative, especially regarding comfort and cleanliness MSMEs still use simple production capacity is limited Journal of Indonesian Economy and Business.
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Driving Factors There are sales outlets for seafood-based products available The reach and market access for processed marine products is quite extensive Guidance and assistance provided by the local Limited capital for MSMEs Limited infrastructure in coastal locations MSMEstend to be individualistic in developing their businesses The strategy to focus on the results of the analysis can be formulated so that the key forces or drivers that have been selected are focused on the goals that have been set, namely to develop an integrated blue economy ecosystem model based on the biological resources of Central JavaAos marine industry.
The selected driving factors are wet-processed products and dry products, while the inhibiting factors are that micro, small and medium enterprises tend to be individualistic in developing their businesses.
The strategy options are: .
forming a Joint Business Group (KUBE) as a forum for learning and exchanging information between business .
utilizing innovations that support the development of biological resource products according to the productsAo characteristics and business capitalAos capability.
expanding cooperation networks with raw material suppliers, microfinance institutions, and mass .
strengthen communication and coordination with local governments and The challenges of developing a blue economy must be studied for each industrial sector (Table .
This is because each industry faces diverse and unique conditions.
There are challenges facing each blue economy industrial sector operating in Central Java, which still needs to develop.
Much of the waste produced when processing seaweed can be recycled for other uses.
For example, liquid waste can be used as liquid fertilizer, while solid waste can be used as the raw material for making ceramics, particle boards, fertilizers, and even lightweight Another challenge concerns the limited Obstacles management capacity of several seaweed factories, which are owned by the local governments, but run at only 30% to 40% of their productive capacity.
This low capacity is most likely due to a lack of access to seaweed, or lack of market access.
CONCLUSION AND SUGGESTION
Development based on the blue economy will be successful if the central and regional governments are mutually committed, take sides, and are brave and firm in providing real action as a form of comprehensive development support, so the direction of policy programs must be innovative and creative.
The involvement and active role of the community is the key to optimal implementation of the activities and the application of the appropriate renewable technology.
Technological developments must be responded to quickly, because technology can change people's thinking, especially fish farmers.
Technology can influence their activities from seeding, cultivation, and harvest to post-harvest, by making increasingly diverse processed Digital technology can help sustain concept-based fisheries businesses and the blue economy, where the basic foundation is maintaining the local wisdom of the area, and processing all the fishery resources owned, so they can be utilized for the community's welfare without destroying the existing ecosystem.
Ecosystems can be maintained by keeping waste or rubbish to a minimum, so it does not pollute the environment.
It can be reprocessed into animal feed, flour or a biogas energy source for sustainable business production.
There must also be support for social equality, related to employment opportunities, using comprehensive community empowerment, meaning there is a role for all the stakeholders, such as academics, the government, and community leaders, to provide ongoing training and assistance to create product innovation and its derivatives, so that fisheries businesses are independent.
This has been put in place and is still running.
The role of technology is to be able to work side by side to answer challenges in the blue Resource optimization must go hand in hand with environmental sustainability.
Digital transformation can be a bridge for business owners .
with the market, as consumers .
will interact efficiently with each other in meeting the production chainAos supply and the marketAos needs.
Innovation in digital transformation must continue to be carried out and supported by human resource skills, to increase competetiveness and open market access as widely as Therefore, it is necessary to carry out continuous training so that the economic efficiency of sustainable fisheries can be Adopting digital technology in aquaculture applications can make the villages better prepared for competition.
The potential contribution of the blue economyAos support for this sector of the Indonesian economy is huge.
The most significant contribution can be seen from the fisheries sector and aquaculture.
However, of all the industrial sectors in the blue economy.
Indonesia still needs to optimally develop the renewable energy, bioeconomy, and biotechnology sectors.
The sea-based industry sector has several challenges, including:.
micro, small and medium enterprises dominate the industry.
the capacity of sea-based food processing units is generally still low.
the Perdana, et al.
human resources suffer from a lack of skills and technical knowledge regarding production standards, as well as low-quality assurance of the products and raw materials.
the risk of an unsustainable supply of raw materials.
dynamic changes in consumer preferences.
In facing these challenges.
Indonesia has made several efforts, including implementing marine zoning to control overfishing, enacting regulations in the maritime sector and carrying out strict enforcement, and implementing muscular coordination between the stakeholders with duties and functions in the maritime and fisheries sectors.
It is hoped that future research will examine, in detail, the impact of each blue economy industrial sector on the economy quantitatively, by describing regional and national conditions, so that future studies can provide an accurate picture of the impact of the blue economy, producing a "new" sector that is sustainable for Indonesia.
ACKNOWLEDGEMENT
All the authors would like to thank the Deputy Chancellor for Field IV through LPPM UDINUS, who has funded and supported the completion of this research.
REFERENCES