COVID-19 pandemic and the momentum of seaweed industry development in Indonesia towards sustainable food system: An overview

Abstract

The COVID-19 pandemic has had an impact on the seaweed industry due to changes in supply and demand, cost increases, market volatility, and the implementation of lockdown measures. This study aimed to determine the effect of the COVID-19 pandemic on the seaweed industry to support a sustainable food system. This study used both primary data from the seaweed industry, especially the upstream sector, and secondary data to determine the progress of the national and international seaweed industries. The data was analyzed descriptively to obtain information regarding the role of the seaweed industry in accelerating post-pandemic coastal economic recovery. The results indicated that seaweed cultivation can support coastal economic recovery in the post-COVID-19 pandemic. After demand recovers, production can be enlarged in a short time without excessive investment and has the potential to generate income within 30–45 days. It was found that total seaweed exports have dropped by 30.54% and 19.90% by volume and value, respectively, in only the early stages of the COVID-19 outbreak. However, the effect of the pandemic has encouraged accelerative industrialization by increasing the capacity of domestic seaweed factories from 50% to 72%. The pandemic has also triggered the domestic industry to produce seaweed derivative products independently, such as carrageenan, alginate, and agar, to reduce dependence on imports. It is imperative to recommend to the Indonesian government that the export tariff on dried seaweed be increased to boost the competitiveness of the domestic seaweed processing industry and invest in the diversification of processed seaweed derivative products.