SUSTAINABLE BLUE ECONOMY FRAMEWORK FOR INDONESIA
3.7.3 Institutional Framework
A sustainable ocean economy is high on the Indonesia government agenda and led to the creation of dedicated policies, institutional structures and the adoption of integrated policy tools. Indonesia established a dedicated ocean policy strategy and created a Coordinating Ministry of Maritime Affairs and Investments to streamline ocean governance. The Ministry coordinates the Ministry of Marine Affairs and Fisheries, the Ministry of Energy and Mineral Resources, the Ministry of Transportation, Ministry of Environment and Forestry, Ministry of Public Works and Housing, and the Ministry of Tourism and Creative Economy/Tourism and Creative Economy Agency. A number of ad hoc structures were also created to enhance the country’s ocean governance, particularly focused on IUU fishing.
These are positive steps to increase coordination and enhance policy coherence on ocean matters across the administration, albeit the governance of the ocean remains somewhat fragmented both horizontally and vertically, reflecting the complex nature of Indonesia’s national and local governments (OECD, 2021). Besides the Ministry of Marine Affairs and Fisheries, several other ministries have responsibilities on ocean-related matters explained in the table below.
Table 3.2 Ocean-related Competencies Across Ministries of Indonesia
Ministry/Agency Competence
Coordinating Ministry for Maritime Affairs
and Investment Inter-ministerial coordination
Indonesia Statistics Development of ocean accounting framework Ministry of Cooperatives and Small and
Medium Enterprises (SMEs)
Cooperatives and SMEs development in marine/
fishery business
Ministry of Defense
Navy
Maritime defense policy
Ministry of Energy and Mineral Resources
Offshore oil and gas
Marine energy development
Ministry of Environment and Forestry
Marine conservation (some marine protected areas)
Reducing marine pollution
Mangrove ecosystem data custodian
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Ministry/Agency Competence
Ministry of Finance
Customs and excise from shipping industry Fees and taxes
Subsidies
Carbon related mechanisms
Ministry of Foreign Affairs Protect and advance Indonesia’s maritime interests
Ministry of Home Affairs
State boundaries (province and region/
municipality)
Coordination between provincial and municipal governments on marine affairs
Ministry of Law and Human Rights Drafting of ocean-related legislations
Ministry of Marine Affairs and Fisheries
Fisheries Aquaculture
Fisheries resources surveillance Coastal regions and small islands Some marine protected areas Marine services
Marine/fisheries product added value
Ministry of National Development Planning (BAPPENAS)
Strategic orientation for investment
Medium-term and long-term development and planning (RPJMN and RPJPN)
Low Carbon Development Initiative Ministry of Tourism and Creative Economy/
Tourism and Creative Economy Agency Marine tourism
Ministry of Transportation
Shipping Navigation Ports
Blue Economy Development Framework for Indonesia’s Economic Transformation | 39
Ministry/Agency Competence
Sea and Coast Guard IMO focal point
Ministry of Industry
Processing Industry Ship Building Industry
Small and medium marine/fishery industry Product standardization and certification
Ministry of Trade
Trade diplomacy, including negotiating tariff and non-tariff barriers for export of fishery products Trade promotion, especially for export products Product standardization and certification Consumer protection
National Research and Innovation Agency (BRIN)
Basic ocean research Industry applicable R&D
National Standardization Agency Product and process standardization
Source: OECD, 2021, Presidential Regulation No.18 of 2020
The Indonesia’s blue economy development acknowledges the importance for Indonesia to adopt integrated ocean management, such as Marine Spatial Planning (MSP) and Integrated Coastal management. Two of the most challenging implementations are the collection of good quality marine data conflicts that arise between different users of marine areas. The UNESCO-ICO and EC’s guide on marine spatial planning become the reference. The adoption is expected to address some challenges related to coastal and marine space allocation, management and resource utilization among neighboring local governments, as well as the increasing pressure on the marine ecosystem due to competing economic activities among economic actors on different levels.
An initial step was completed in 2014, when municipal governments' authority over the sea was withdrawn and moved to provincial governments to create integrated ocean governance. As a result, central government jurisdiction covers the area beyond 12 nautical miles, while the provincial government is between 0 to 12 nautical miles of the shore. Municipal authorities maintained their competence in coastal management and planning. In 2020, several regulatory changes in ocean sectors because of the Omnibus Law, including a concentration of control with the central government, the transformation of the licensing system, and a shift from criminal to administrative sanctions for fisheries violations. The changes progress the way to achieve an integrated ocean management.
40 | Blue Economy Development Framework for Indonesia’s Economic Transformation In addition to this, substantial community and stakeholder engagement is crucial to recognize marine users' rights and simultaneously promote social benefits and sustainable economic activity. In particular, recognizing customary laws and the rights of communities in the use of marine resources is of particular importance for Indonesia.
The engagement of different stakeholders, including different government ministries/agencies, needs also to be complemented by sufficient capacity development in coastal and marine management. For the most part, the government must ensure that the regulations related to the blue economy fulfil the people's needs and nature.