DOI: 10.29133/yyutbd.1827795 ISSN: 1308-7576

A Blue Economy-Based Agribusiness Model to Improve the Welfare of Coastal Communities in Indonesia

Totok Hendarto, Yogantara Setya Dharmawan, Endang Sri Wahyuni
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Coastal communities in Indonesia face structural challenges such as economic vulnerability, environmental degradation, and limited market access due to less sustainable conventional agribusiness models. This research offers a novel blue economy-based agribusiness model that not only emphasizes product downstreaming but also integrates institutional strengthening, business diversification, adoption of environmentally friendly technologies, and SMART indicators and Key Performance Indicators (KPIs) as measurement instruments for success. The research was conducted using a mixed methods approach, including a quantitative survey of 200 coastal households in Sidoarjo and Banyuwangi, in-depth interviews, and focus group discussions (FGDs) with approximately 30 key informants. The results indicate heterogeneity between locations: Sidoarjo, dominated by intensive cultivation, faces input and environmental constraints, while Banyuwangi, with a more diverse economic structure, shows strong potential for diversification and ecotourism. The resulting model consists of input–process–output–outcome components with measurable KPIs in the short, medium, and long term, as well as an eight-step implementation strategy that is adaptive to the local context. This research contributes to national policies ranging from the 2021–2045 Blue Economy National Action Plan to the SDGs. The limitations of this research lie in the limited scope of the study area and the validation of the model which is still at the conceptual stage, so further research is needed to test implementation in other locations as well as the use of more varied indicators and quantitative data processing.

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