Definition of Maritime Economy and Maritime Economic Development Efforts in Indonesia

As you already know that Indonesia is a maritime country. The term maritime country refers to a country that has a larger territorial waters compared to its land area. Maybe you already know the meaning of the term maritime, but do you know the meaning of the term maritime economy?

Maritime economy is a term that you often hear, but unfortunately you don’t really understand its meaning. So, what is the meaning behind the term maritime economy.

In order to understand the term maritime economy, the following explanation has been presented regarding the maritime economy. Starting from the definition of the maritime economy to the differences between the maritime economy and the maritime economy.

Definition of Maritime Economics

In short, the maritime economy is defined as all economic activities that take place in the sea and ocean coastal areas. This maritime economic activity is an economic activity that is carried out quite a lot by archipelagic countries as well as countries that have a significant sea area.

Reasons Why Maritime Economy Needs to be Developed in Indonesia

As a country that has a very wide and large territorial waters, Indonesia is a country that is respected by many countries. Indonesia’s maritime power does not only come from military capacity or abundant underwater wealth.

However, the maritime industry has also contributed to the development of Indonesia as a maritime nation. There are several reasons why the maritime economy needs to be developed in Indonesia. Well, what are they? Let’s find out together the reasons below.

1. Strengthening Indonesia’s Identity as a Maritime Country

With the national identity as a maritime country, it is only natural that the Indonesian state needs to develop the maritime industry as a source of foreign exchange for the country.

2. Helping the Management of Marine Resources

Although not directly related to the management of marine Natural Resources (SDA), the development of the maritime industry is important so that marine wealth can be processed and distributed more quickly.

3. Equalize Infrastructure Development

Maritime economic development is one of the right ways to realize national development evenly.

4. Improving Maritime Connectivity

With so many islands scattered throughout the country, the Indonesian state needs to build facilities that support inter-island affordability. One way is by developing the domestic shipping industry.

Maritime Economic Development Efforts

Increased development of maritime economic activities is expected to encourage economic growth and increase people’s welfare. The development of the maritime economy is very necessary considering the large potential of the existing maritime economy. In Indonesia there are 3 (three) maritime economic development efforts that need to be implemented, including:

1. Changes in the National Development Base

This change in the basis of national development can occur from land-based development to maritime-based development. This change is one of the efforts that needs to be made to accelerate the acceleration of various strategic means of maritime transportation.

A real example is the construction of the Patimban port in 2020 in Kab. Subang, West Java. Currently the development is a major export port in the country of Indonesia.

2. Stimulating the Acceleration of Infrastructure Development and Maritime Connectivity

Port development is one example of maritime economic development. With the construction of a goods terminal equipped with docks, warehouses and stacking yards, loading and unloading equipment, activities at the port will be further enhanced. That’s what brings a lot of benefits and opportunities.

For example, it can create jobs for the community. Particularly for people who live around the port, increased passenger traffic, import-export activities, and inter-island trade through ports.

There are a number of main ports for export and import activities in Indonesia, including the ports of Tanjung Priok, Tanjung Perak, Bontang, Dumai, Belawan, Cilacap, Samarinda, Tanjung Emas, Merak, Kotabaru, Banjarmasin, Tuban, Cigading and Batu Ampar.

3. Regulations Appropriate to All Parties, Both Domestic and Foreign

A clear example of efforts to develop the maritime economy from regulations that are in accordance with all parties, both domestic and foreign, namely four matters of passage in Indonesian waters which include innocent passage rights, transit passage rights, ALKI passage rights, and communication access rights. Dimama, this right of innocent passage is described in article 17 of the 1982 UNCLOS, which states that it will give rights to all countries, whether they are countries with shores or landless. Enjoys the right of innocent passage through the territorial sea and article 18 which explains the definition of crossing as shipping through the territorial sea.

Another regulation is ALKI (Indonesian Archipelagic Sea Lanes). Indonesia is an archipelagic country or named as the first archipelagic state in the world by having a sea lane separation chart or TSS in the Indonesian archipelagic sea lanes.

The two sea lane separation charts or TSS of the Sunda and Lombok Straits are now included in the Indonesian Archipelagic Sea Channels (ALKI) I and II. The Indonesian Archipelagic Sea Lanes (ALKI) itself, are sea lanes in Indonesian territorial waters that are free to be navigated by international ships (freedom to passage) and are stipulated in the agreement of the United Nations Convention on the Law of the Sea or The United Nations Convention on the Law of the Sea (UNCLOS) in 1982.

In general, efforts to develop the maritime economy are directed at achieving 4 (four) objectives, including:

1. Sustainably high economic growth.
2. Increasing the welfare of all business actors, especially fishermen, fish cultivators and other small-scale communities.
3. The preservation of the environment and marine resources is maintained.
4. Making the sea a unifier and upholding national sovereignty.

5 Main Pillars in Maritime Industry Development in Indonesia

For the success of the policies that have been launched, the maritime industry in Indonesia refers to 5 (five) main pillars. The five pillars of maritime industry development include the following:

1. Development of Maritime Culture in Indonesia

Indonesia is one of the largest archipelagic countries that all nations must realize. Awareness of the identity of a nation that has a greater wealth of marine Natural Resources (SDA). Therefore, it is necessary to always carry out development in this field and increase it for future prosperity.

2. Better Management of Marine Resources

The implementation of all maritime economic policies is easy, so that cooperation between the government and the community is needed. Good cooperation to increase food mastery of the sea.

In addition, avoiding exploitation of marine resources so that the development of the fishing industry is always safe. One of them is fishermen who are the main pillars.

3. Prioritizing Infrastructure Development and Connectivity

The third pillar refers more to the development infrastructure. An example is the sea highway development policy. In addition, there are also logistics, industry, shipping and maritime tourism.

4. Development of Maritime Diplomacy

Maritime diplomacy is also an important pillar for eliminating conflicts that often occur in the sea area. Such as fish theft from other countries, waves, pollution of the marine environment, and so forth.

5. Development of Maritime Strength and Defense

In addition to maritime diplomacy and in order to prevent conflict, Indonesia needs to build strength and defense in the maritime field.

Examples Of Maritime Economic Activities

This discussion has discussed a lot about the maritime economy. Perhaps, some people are still confused or wondering what are the examples of maritime economic activities. The following have presented several examples of maritime economic activities, including:

1. Shipbuilding Industry

In order to support inter-island connectivity, the shipbuilding industry is an example of the main activities of the maritime industry in Indonesia.

2. Crossing Services Between Islands or Between Countries

In order to increase the use of sea transportation, the availability of inter-island and inter-country crossing services is one of the most important things in maritime economic activities.

3. Container Terminal

Shipments of goods carried out between islands and between countries require containers. The maritime industry also needs to provide berths for ships carrying containers. From this terminal, ground transportation will deliver goods in containers to their respective destinations.

4. Marine Tourism

Maritime tourism is also one of the businesses that can support maritime economic activities. Exclusive trips with cruise ships are one example. By now, you must have understood what the maritime economy is. The maritime economy is all activities that take place in the coastal areas of the seas and water areas.

A number of examples of this maritime economic industry, namely the shipbuilding industry, inter-island or inter-country crossing services, and marine tourism.

5. Mining and Energy Industry

The large number of mineral resources in Indonesia are located in the territorial waters. For example, namely oil, natural gas, silver, and so forth. All of them have now become the mining and energy industries.

6. Fisheries and Biotechnology Industry

This industry has quite a lot of value, because it is connected with other industries, for example, food and beverages, medicines, cosmetics, and so on. This industry is also a supplier of raw materials for marine resources whose types of products can be used or managed directly.

7. Sea Road Industry

The sea highway policy is one example of maritime economic activity. Smooth distribution can also occur with the construction of a sea toll road. All remote areas can be reached with logistics costs that are not too high.

A well-managed maritime economy can improve the welfare of the Indonesian people. Everything requires the role of various parties so that it runs smoothly. If it is managed properly and continues to be developed, Indonesia can become an advanced country in the maritime field.

Maritime Economic Benefits for Indonesia

Referring to the five pillars of development and policies in the maritime economy, what kind of benefits can be felt. Following are a number of maritime economic benefits for Indonesia, including:

1. Sustainable Economic Growth

The realization of the sea highway is very helpful for inter-island economic activities. For people who live in frontier areas, economic lagging has increased sustainably.

2. Welfare of Business Actors

In the economy, maritime business actors are fishermen, fish cultivators, and small-scale maritime communities. All business actors will get much better welfare.

3. More Preserved Environmental Sustainability

Another benefit of the maritime economy for Indonesia is that the preservation of the marine environment will be more maintained and maintained. The positive impact is that marine resources will continue to be sustainable.

4. Sea as a Unifier of the Nation

It is difficult to reach frontier and underdeveloped areas which are now difficult, so with the presence of sea tolls and many ports it is hoped that transportation facilities will be easier. An increasing economy, of course, will make the ownership of the nation stronger.

5. Development of Maritime Economic Activities

Increased development of maritime economic activities is expected to encourage economic growth and increase people’s welfare. He really needs the development of the maritime economy, considering the large potential of the existing maritime economy.

Differences between the Maritime Economy and the Marine Economy

Maritime economy and marine economy for some people are considered the same policy. In fact, the two are different and make these policies stand on their own. To make it easier to understand the difference between the two, the following is an explanation.

1. By Definition

Based on the definition, the maritime economy and the maritime economy have differences. Maritime economy is economic activity that occurs on the sea coast and all activities related to sea transportation.

For example, the activities of crossing the strait by boat, crossing activities by boat, the process of distributing goods by sea using ships and others.

Meanwhile, the marine economy is an economic activity related to marine products. For example, a fisherman who catches shrimp or fish in the sea. Later the process of fishing through a special boat that uses modern tools.

So, traffic at sea falls into the category of maritime economy while activities related to marine products. So these two terms are basically different.

2. Differences in Purpose

The second difference, namely based on its purpose. The aim of this maritime economy is different from the maritime economy. The maritime economy aims to build the nation’s competitiveness, develop shipbuilding businesses, and increase the cargo of the fleet.

Meanwhile, the aim of the marine economy is to develop areas or areas around the sea. Economic activities carried out then produce goods or services, meaning that they can produce products.

The product can then be sold because it has economic value. For example fish that have been caught by fishermen, then processed into dried fish or salted fish. Salted fish or dried fish is a product of marine economic activities.

3. Differences in Activities

The last difference is the difference based on activity. Activities between the two types of economy related to seawater are different.

Because in accordance with the differences in objectives that are owned according to the previous explanation, that all activities at sea that produce products, either goods or services, are examples of marine activities. Such as salt farmers, shrimp farmers, fishermen, and others. This type of activity produces goods, such as salt farming by the sea. The activities carried out will produce sea salt that can be used for various needs.

Whether it’s self-need or sent by the factory to be processed into iodized table salt, given a brand, and packaged according to applicable product standards.

Meanwhile, an example of maritime economic activity is an activity that takes place at sea. Be it by the sea or in the middle of the sea or ocean. Examples include the shipbuilding industry, ship repair industry, and others.

Well, that’s the discussion regarding the maritime economy. Hopefully the discussion above can add to knowledge and provide benefits for readers.