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Indonesia's Seaweed Export Ban Could Harm Domestic Industry

A proposed nationwide ban on seaweed exports in Indonesia, aimed at boosting domestic processing, risks reducing national production and farmer income.

  • Indonesia, the world's second-largest seaweed producer, plans to introduce a nationwide export ban on seaweed, following a provincial ban in 2022.
  • The ban is intended to encourage investment in domestic seaweed processing, but research suggests it could adversely impact domestic production and farmer livelihoods.
  • Seaweed farming is a major industry in Indonesia, supporting the livelihoods of around 62,000 farmers and contributing US$1.89 billion annually to marine aquaculture production.
  • An export ban could lead to lower commodity prices, pushing farmers towards other sources of income and reducing national seaweed production.
  • Despite the intention to support domestic processors, the ban may not effectively enable them to compete with large, foreign-owned companies operating in Indonesia.
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