Background paper on Indonesia"s coastal resources sector

The country"s coastline extends over 81,000 km and comprises 14% of the earth"s shoreline. Its marine and coastal ecosystems contain diverse and productive resources, including extensive mangroves and swamps and tens of thousands of coral reefs which nurture the huge fisheries industry and protect adjacent coastal lowlands. Total marine and coastal activities represent about 22% of GDP and support about 48% of the population. This report examines the role of Indonesia"s coastal sector in the country"s economic diversification. It summarizes economic activities and issues in the following coastal subsectors: shipping and ports, oil and gas development, fisheries, aquaculture, coastal agriculture, coastal forestry, mining, industry, tourism, transportation and communications, and coastal communities. Final sections describe coastal activities by nongovernmental organizations, multilateral and bilateral donors, and the Indonesian government. The report concludes with an analysis of the economic potential of each coastal subsector. Three subsectors emerge as having the most potential benefits and the least negative impacts: coastal communities, transportation/communications, and tourism. Recommendations are made for USAID assistance to these subsectors. Includes a 6-page bibliography.