KEMENTERIAN KELAUTAN DAN PERIKANAN

JAKARTA, 26 NOVEMBER 2012

BLUE ECONOMY: TOWARDS A SUSTAINABLE MARINE AND FISHERIES DEVELOPMENT FOR THE PROSPERITY OF THE PEOPLE IN INDONESIA 2nd APEC Blue Economy Forum, Tianjin, PR. CHINA December 6, 2012 SUNOTO, MES, PHD THE MINISTRY OF MARINE AFFAIRS AND FISHERIES, REPUBLIC OF INDONESIA

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INTRODUCTION 1.  Indonesia is an archipelagic country with abundance of marine and fishery

resources. However, the contribution of marine and fisheries sector to the economy is relatively still small.

2.  MARINE RESOURCES: ABUNDANCE

•  Number of Islands: 17,504 Islands

•  Coastline: 81.000 km

•  Marine area: 5.8 million km2 (2/3 of Indonesian territory)

•  Industry: 80% of industries and 75% of major cities are in the coastal area

•  Capture fisheries: the 6.5 million tones of fish per year

•  Mariculture potential: more than 12 million ha

•  Oil & gas: oil & gas Indonesia Basin from 60 spots, 70% are in the ocean

•  Petroleum reserves of 9.1 Billion Barrels in the sea

•  Tourism: most of the tourist attractions linked to the sea

3.  ENVIRONMENTAL CONCERNS: RISKS

•  Environmental Degradation and Pollution •  Global Warming and Climate Change

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MARINE AND FISHERIES DEVELOPMENT: OUR CHALLENGE (OPPORTUNTY AND COMMON CONCERN)

u  BALANCING ECONOMIC DEVELOPMENT WITH EQUITY AND ENVIRONMENTAL PROTECTION: Increasing economic growth, job opportunity, poverty alleviation, and protecting the environment from natural resources degradation and pollution

u  PRECAUTIONARY PRINCIPLES: Integrated, comprehensive, long terms oriented policies, nature’s efficiency and multiple economic benefits

u NEED : BREAKTHROUGH POLICIES AND PROPER DEVELOPMENT STRATEGIES

u SUSTAINABLE DEVELOPMENT, GREEN ECONOMY, AND BLUE ECONOMY?

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SUSTAINABLE DEVELOPMENT ?

The concept of Sustainable Development was developed to respond to economic crisis, including food, water, and energy in underdeveloped countries mainly in Africa and Asia, as a result of greed and careless managing the nature. The essence and formulation of Sustainable Development: The ESSENCE: "sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs": does not damage the nature: atmosphere, water, soil and living things--reducing pollution and environmental degradation, control the exploitation of natural resources, and promote social equity. DEFINITION: "sustainable development is a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are all in a state of harmony, as well as increasing the potential for the present and the future to meet the needs and aspirations of human beings." (Brundtland Commission, WCED, 1987) September 6, 2013 4

GREEN ECONOMY (UNEP)

Green Economy is “…. one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.” “In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient, and socially inclusive.” “… a green economy is one whose growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services.” (UNEP REPORT) Critical Issues on Green Economy: Green products and services tend to be more expensive and companies invest more

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BLUE ECONOMY: SEARCHING FOR NEW MODELS OF MARINE

AND FISHERIES DEVELOPMENT In 2010: the publication of The Blue Economy:10 years, 100 Innovations, and 100 million jobs by Gunter Pauli (2010) THE CLUB OF ROME REPORT) The concept of the Blue Economy developed to answer the challenge that the system of the world economy has been exploitative and damaging the environment, but because of the waste and the damage caused by the exploitation of nature exceed the capacity or ability of natural support. The principles of resource efficiency, low carbon, social inclusiveness have flourished, but still hasn't been able to overcome the human greed to exploit natural resources. The implementation of sustainable development with the concept of green products and services, i.e. environmentally friendly products and services do not necessarily match the expectations: to buy more expensive products and cannot reach the poor, even investors have to pay larger fees to produce green products and services. The concept of the Blue Economy is meant to challenge the investors that the blue economy business model provides an opportunity to develop business and investment more profitable economically and environmentally: using natural resources more efficiently and does not damage the environment, production systems more efficient and cleaner, producing goods with greater economic value, increase the absorption of labor, and provides an opportunity to give benefit to all contributors. September 6, 2013 6

THE ESSENSE OF BLUE ECONOMY

1)  LEARNING FROM NATURE: the concept of the Blue Economy modeled after nature: working according to what nature provided with efficient: do not diminish but rather enrich nature (shifting from scarcity to abundance).

2)  THE LOGIC OF ECOSYSTEMS: the workings of the foundation of the ecosystem model of the Blue Economy, i.e. like water flowing from the mountains carrying nutrients and energy to meet the basic needs of life of all components of the ecosystem--waste from something being food for others, waste from one process to the raw material/energy source for others. Only by gravity energy is distributed efficiently and evenly without external energy extraction.

3)  INSPIRED BY 100 INNOVATIONS: there are 100 practical economic innovations that inspire Blue Economy with the principle follow the workings of ecosystems: ecosystems are always working towards higher efficiency levels to drain the nutrients and energy without emissions and waste to meet the basic needs for all contributors.

SOURCE: PAULI 2010

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THE BLUE ECONOMY PRINCIPLES

• Nature’s efficiency • Zero waste: leave nothing to waste – waste for one

is a food for another - waste from one process is resource of energy for the other

• Social inclusiveness: self-sufficiency for all – social equity, more job, more opportunities for the poor

• Generation to regeneration and balancing production and consumption

• Multiple Economic Benefits SOURCE: PAULI 2010

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THE NATURE OF BLUE ECONOMY •  Blue Economy is likely Green 2.0 (Pauli 2010)

•  Blue Economy is not simply Ocean-based Economy, but Ocean-based Economy may be developed based upon the Principles of Blue Economy

•  Blue Economy is not Green Economy applied to Marine Resource Development

•  The concept of Blue Economy is likely most suitable to apply in promoting sustainable marine and fisheries development

•  BLUE ECONOMY: INTEGRATION OF OCEAN-BASED AND LAND-BASED ECONOMY

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THE PRINCIPLES MARINE AND FISHERIES DEVELOPMENT BASED ON

BLUE ECONOMY

1)  POLICY INTEGRATION: The policy integration of economic development and environmental protection, and investment at the national, provincial, and district levels.

2)  REGIONAL DEVELOPMENT: Region-based economic development: land-use planning; cross-cutting authority, business interest, and ecological boundaries that promote economic growth and environmental protection.

3)  CLEAN PRODUCTION SYSTEMS: achieving efficient production systems without waste (leave nothing to waste): pollution-free and does not damage the environment.

4)  CREATIVE and INNOVATIVE INVESTMENTS: developing the Blue Economy Models of Investment and Businesses.

5)  SUSTAINABLE DEVELOPMENT: promoting a balanced economic development and environmental protection.

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CRITERIA OF BLUE ECONOMY MODELS OF BUSINESS AND INVESTMENT (innovations and creativity)

1)  MULTIPLE REVENUE/CASH FLOW 2)  BUSINESS DEVELOPMENT OPPORTUNITY:

•  SAVE RAW MATERIALS AND ENERGY (reduce cost) •  DIVERSIFY PRODUCTS/SERVICES/BUSINESSES (more products, money and job) •  HIGH PRODUCTIVITY (more money) •  AN INCREASE IN VALUE ADDED (more money) •  QUALITY IMPROVEMENT (more money) •  NO WASTE: WASTE AS RAW MATERIAL for DERIVATIVE PRODUCTS (more money

and job) •  NATURAL RESOURCE and COST EFFICIENT, but REVENUE INCREASED (more

money for less environmental risk)

3)  INCREASED EMPLOYMENT OPPORTUNITIES (+) 4)  AN INCREASE IN PEOPLE'S INCOME (+) 5)  DO NOT DAMAGE AND POLLUTE THE ENVIRONMENT (reduce tax burden

and lawsuit risk) 6)  EFFICIENT AND ENRICH THE NATURE (+)

INNOVATION and CREATIVITY include: PRODUCTS, PRODUCTION SYSTEMS, MANAGEMENT, MIND SET, AND THE WAYS OF DOING BUSINESS 11

POLICY AND STRATEGY

1)  DEVELOPING BUSINESS AND INVESTMENT POLICY PRO INNOVATION AND CREATIVITY WITH THE BLUE ECONOMY MODEL: Marine and Fisheries, Sea Transportation, Maritime Industry, Tourism, Energy and Mineral Resources

2)  IMPROVING INTEGRATED NATIONAL POLICY AND OCEAN-BASED RELATED ECONOMIC ACTIVITIES AND LAND-BASED ECONOMY

3)  DEVELOPING BLUE ECONOMY MODEL ZONES 4)  DEVELOPING CONNECTIVITY: BUSINESSES AND

INFRASTRUCTURE 5)  DEVELOPING RESEARCH, TECHNOLOGY, AND HUMAN

RESOURCES September 6, 2013 12

BLUE ECONOMY MODELS

1)  INTEGRATED MODEL OF BUSINESS AND INVESTMENT: business and investment with innovation and creativity that promote diversification of products and businesses, increased employment, nature’s efficiency, multiple economic benefits and save the environment,

2)  SMALL ISLANDS CLUSTERING: a Region-based Model of integrated economic and environmental management of small islands,

3)  The BAY AREA MANAGEMENT MODEL: the Bay area is relatively spacious and projected into an economic area with rich plurality of high activity – economically valuable and environmentally protected,

4)  CONSERVATION AREA ECONOMIC DEVELOPMENT: models of protected area: Balancing environmental conservation and the economy.

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Indonesia

LAND AREA

SEA AREA

POPULATION

COASTLINE 220 KM

1.105.671 Persons

1.074,33 KM2

1.605,55 KM2

LOCATION  (1)    

DIREKTORAT  TATA  RUANG  LAUT  PESISIR  DAN  PULAU-­‐PULAU  KECIL  Direktorat  Tata  Ruang  Laut,  Pesisir  dan  Pulau-­‐pulau  Kecil  Direktorat  Jenderal  Kelautan,  Pesisir  dan  Pulau-­‐pulau  Kecil  Kementerian  Kelautan  dan  Perikanan  

EAST LOMBOK: BLUE ECONOMY MODEL 1

TIMUR

+ Total of Vilage = 8 vilages (Jerowaru, Pandan Wangi, Pemongkong, Sekaroh, Batunampar, Batunampar Selatan, Pene, Serewe, Wakan, Ekas Buana); + Total of population : 54.125 persons (Th. 2012)

PLANNING  REGION  (2)  

DIREKTORAT  TATA  RUANG  LAUT  PESISIR  DAN  PULAU-­‐PULAU  KECIL  Direktorat  Tata  Ruang  Laut,  Pesisir  dan  Pulau-­‐pulau  Kecil  Direktorat  Jenderal  Kelautan,  Pesisir  dan  Pulau-­‐pulau  Kecil  Kementerian  Kelautan  dan  Perikanan  

PLANNING  REGION  (3)  

DIREKTORAT  TATA  RUANG  LAUT  PESISIR  DAN  PULAU-­‐PULAU  KECIL  Direktorat  Tata  Ruang  Laut,  Pesisir  dan  Pulau-­‐pulau  Kecil  Direktorat  Jenderal  Kelautan,  Pesisir  dan  Pulau-­‐pulau  Kecil  Kementerian  Kelautan  dan  Perikanan  

MARINE INDUSTRY ZONE (4)

PEARL Potency: 3.433,65Ha Existing area : 1.628,15 Ha Total Product : 0,20 tons (2009)

SEAWEED Potency: 2000 Ha Existing area: 526,18 Ha Total Product: 118,975 tons (2009)

GROUPER Potency: 509,40 Ha Existing area : 9 Ha Total Product : 12,60 tons (2009)

LOBSTER Potency: 525,68 Ha Existing area : 28,55 Ha Total of Product : 146 tons (2009)

SALT Potency: 2.183,13 Ha Existing area: 205 Ha Total Product: 9.106,38 tons (2012)

Productive salt pond : 205 Ha Potential salt pond : 2.183,13 Ha Forest Area

DIREKTORAT  TATA  RUANG  LAUT  PESISIR  DAN  PULAU-­‐PULAU  KECIL  Direktorat  Tata  Ruang  Laut,  Pesisir  dan  Pulau-­‐pulau  Kecil  Direktorat  Jenderal  Kelautan,  Pesisir  dan  Pulau-­‐pulau  Kecil  Kementerian  Kelautan  dan  Perikanan  

TOURISM Potency: Coral reef, pink sand Existing area : 1 hour from Lombok international airport

DIREKTORAT  TATA  RUANG  LAUT  PESISIR  DAN  PULAU-­‐PULAU  KECIL  Direktorat  Tata  Ruang  Laut,  Pesisir  dan  Pulau-­‐pulau  Kecil  Direktorat  Jenderal  Kelautan,  Pesisir  dan  Pulau-­‐pulau  Kecil  Kementerian  Kelautan  dan  Perikanan  

Ringgit Gulf

Ekas Bay

Sunut Island

Pink Beach Serewe Beach

Heaven Beach

TOURISM AT THE PLANNING AREA (5)

Farming Zone Forest area, Central park Techno Park Industry & Energy Marine Industry Housing

Tourism, Culinary

Salt Evaporation Pond

Lobster Grouper Seaweed Grouper, Lobster, Pampus Argentus Ecotourism Pearl Loligo spp

LEGEND : Plan of Main Road

Planning area boundary

AN INTEGRATED DEVELOPMENT PLANNING OF THE COASTAL AREA: EAST LOMBOK

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PETA PUSAT-PUSAT KEGIATAN

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THANK YOU

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BLUE ECONOMY: BLUE OCEAN - BLUE SKY SEE SEA FOR A BETTER WORLD