Few would now deny that our current economic model is unsustainable; financially, socially or environmentally. The most powerful counter-movement to ‘business as usual’ has been that of the ‘Green Economy’. However, whilst this has had a real impact on particular niche markets such as fair trade tea and coffee, it has not materialised as a comprehensive alternative to the current orthodox model of development and growth. The primary downfall of the Green Economy model is that it requires companies to invest and customers to pay more for socially and environmentally responsible products. As Gunter Pauli persuasively argues in his UNEP report titled “The Blue Economy”, this model is valid and justified when an economy is expanding and unemployment is falling, but becomes less appealing when demand drops, liquidity dries up and poverty presents itself as a real threat to the population.
Yet this year’s Rio +20 event held in Rio de Janeiro, Brazil, symbolised the international community’s unwavering commitment to a more sustainable development track. Within this forum Indonesia officially introduced the concept of the ‘Blue Economy’, arguing for a global paradigm shift that recognises that our planet is both green and blue. The Secretary General of the Ministry for Maritime Affairs and Fisheries, Dr Gelyn Yusuf, explains that the Blue Economy is still an evolving discourse but at its core is the argument that the almost-exclusive emphasis on the development of land-based economies has distracted us from the maritime economic potential, which is able to support sustainable development and mitigate the impact of climate change.
“We are not saying there is a green economy for the inland and a blue economy for the ocean. Fundamentally, the conditions are the same,” clarifies Dr Yusuf. Oceans cover approximately 71% of the world’s surface and contain 97% of the earth’s water supply. Land and sea ecosystems are inherently interconnected. Oceans moderate the earth’s temperature by absorbing solar radiation, with currents distributing this heat energy around the globe – thereby regulating temperature and weather by heating the land and air in winter, and cooling it during the summer. For these vital reasons, maritime concerns can no longer afford to be placed as a footnote in sustainable development initiatives.
Like the world itself, more than 70% of Indonesia is comprised of oceans. Indonesia wants to therefore be a pioneering example for the world of what a Blue Economy would really look like when theory meets implementation. The
Ministry of Communication and Information Technology (
MCIT) has taken a lead in educating the Indonesian and international community about the Blue Economy concept.
For Indonesia the Blue Economy consists of three mutually reinforcing facets. The first concerns the incredible revenue-generating potential of marine economic activities. The second relates to the vital importance of conservation and protection of ocean ecosystems for secure and sustainable development. The final aspect relates to an appreciation of the unique social and cultural characteristics of communities connected to the sea.
According to a recent report published by the Indonesian Ministry of Marine Affairs and Fisheries, Indonesia’s total maritime economic potential amounts to approximately EUR 975.6 billion per year, which is equivalent to 10 times the country’s state budget in 2012. Freddy Tulung, the Director General for Information and Public Communication within the Ministry of Information and Public Communication, explains: “The potential of our seas in terms of fisheries and natural resources is huge, but not well-managed as of yet. In the case of fisheries, most of the small ports are not equipped with ice storage to be able to export fish. Secondly, there has not been any value addition to raw fish; for example filleting.”
In addition, Indonesia’s geographic advantages have been under-utilised to date. “70% of all sea trade passes through Indonesia via the Strait of Malacca and the Strait of Timor,” says Mr Tulung. With 90% of all international trade still occurring by sea, Indonesia stands to gain huge revenues from developing its port and shipping capacities. When you add the economic potential of increased coastal tourism, sea energy, underwater mineral deposits and telecommunications cables, the untapped economic potential is astounding.
Indonesia fully recognises that this strategy for faster economic development must be balanced with more intensive programmes for the preservation of the oceanic ecosystem. Indonesia is already experiencing the adverse impacts of climate change, such as rising sea-levels, increased sea-surface temperatures, intensified storm activity and coral reef deterioration due to increasing ocean acidification. The study by the Ministry of Maritime Affairs and Fisheries estimates that if fully optimised, marine resources could help to mitigate up to 80% of global overheating while at the same time providing a source of alternative sea energy. Germany has been a long-standing partner for Indonesia in the area of marine research and will be increasing its level of support in September 2012 by launching the Spice III project – focusing on marine biodiversity, climate change and coral reef and mangrove ecology.
With more than half of Indonesians living in coastal communities, the Indonesian government recognises the importance of maintaining the carrying capacity and quality of its marine resources, for both its people and its culture. “We are not a land-based society, but an ocean-based society. When we talk about Indonesia as an archipelago the most important thing is that the inherent culture is fundamentally connected with the sea,” says Mr Tulung.
Professor Firmanzah, Dean of the Faculty of Economics at the University of Indonesia, discusses the importance that water has played in shaping Indonesian culture. “The culture of Indonesians was developed at the ports. Maritime people are different from agricultural people; they are more open as a society. When religions such as Hinduism and Buddhism came from India into Indonesia, we absorbed their values. When Islam came from the Arabic countries we embraced it. When Christians came through the trade from Portugal and the Netherlands, we were open to it.
“Even though we have more than 500 tribes and 600 different dialects, our relationship with the water binds us socially. So, you could say it is in our genes to be a very open society, a warm society and an outward-looking society,” says professor Firmanzah. In an era of increasing instability, inequality and environmental degradation, the world would be well suited to follow Indonesia’s example of open-mindedness as illustrated by its willingness to follow a new, innovative economic model that may well become the blueprint for the better world we envision.
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