Indonesian Political, Business & Finance News

Indonesia's Seawater Boasts "Secret Power", Korea and Russia Join the Fray

| Source: CNBC Translated from Indonesian | Trade
Indonesia's Seawater Boasts "Secret Power", Korea and Russia Join the Fray
Image: CNBC

Indonesia, as a maritime nation with approximately 5.8 million km² of sea area, does not only utilise its waters for trade routes and fisheries. Instead, Indonesian seawater has become an export commodity that is increasingly sought after by several countries, from South Korea, Russia, Malaysia, Vietnam to Singapore. Based on export data under HS code 25010050, Indonesia actively exports seawater to five main countries. Malaysia is the largest importer, absorbing 21.6 tons of Indonesian seawater throughout 2023 with a value of US$19,038. Geographical proximity and the needs of the aquaculture industry as well as salt production are the main factors behind the high demand. Russia ranks second with imports of 1.8 tons valued at US$5,317. Although known for its cold waters, Russia imports Indonesian seawater for aquarium needs, biotechnology research, and natural-based cosmetics. South Korea also shows high interest with an import volume of 2.75 tons valued at US$2,272. This country extensively utilises Indonesian seawater for spas and premium cosmetics. Meanwhile, Vietnam imports 1.6 tons of seawater valued at US$4,560, mainly for premium salt production. Singapore, although only importing 171 kg valued at US$564, utilises this seawater for marine research and specific aquarium needs. Indonesian seawater is rich in natural minerals such as magnesium and sodium, making it a high-value raw material for various industries. In the aquaculture sector, seawater plays an important role in supporting fish and marine biota cultivation, ensuring a healthy ecosystem and increasing national fisheries production. In addition, the spa and cosmetics industry also utilises seawater in various skin treatments and health therapies, given its mineral content that can aid cell regeneration and improve skin elasticity. Not only that, Indonesian seawater serves as the main ingredient in salt processing, particularly for producing premium salt intended for local consumption as well as exports. Meanwhile, in the field of biotechnology research, seawater is an important component in marine research and the development of natural-based products. Even countries like Russia and South Korea use Indonesian seawater to build giant aquarium ecosystems, demonstrating the high quality and purity of seawater from the Archipelago’s waters. Although it has great potential, seawater exports face several significant challenges. From the logistics and transportation side, the heavy and corrosive nature of seawater requires the use of special rust-resistant containers as well as storage systems that can maintain mineral content stability during shipment. In addition, environmental regulations in some destination countries are quite strict, requiring seawater sources to be taken sustainably without damaging the ecosystem. These challenges encourage industry players to continue innovating in creating solutions that ensure environmental sustainability while enhancing the competitiveness of Indonesian seawater products in the global market. To increase competitiveness, Indonesia needs to focus on innovations such as microfiltration to ensure product quality remains maintained. In addition, collaboration with destination countries for research and development of seawater-based products could be an added value. With the right strategy, Indonesia has the potential to become a leader in the global seawater export market. The government and business actors can expand the market to Europe and the Middle East, which are beginning to realise the benefits of natural ingredients in the health and beauty industries. Seawater, which has long been considered ordinary, actually has high economic value. With market optimisation and innovation, this commodity could become one of Indonesia’s new sources of foreign exchange.

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