Blue Economy Model to Increasing Coastal Community Income, Employment, and GRDP in South Sulawesi

The blue economy is emerging as a key development concept and business model driving Indonesia’s new economy. It is expected to enhance economic growth, social welfare, and ecological sustainability. This study analyzes the role of the blue economy, particularly the fisheries sector, in increasing coastal community income, employment absorption, and regional economic growth (GRDP) in South Sulawesi. Using secondary data from the Central Bureau of Statistics (BPS) and the Fisheries Statistics Report of South Sulawesi (2012–2023), this research employs a dynamic systems approach. Simulations are conducted under a Business As Usual (BAU) scenario and two policy scenarios: expanding conservation areas and providing production assistance. The results show that the blue economy model effectively sustains fish stocks, maintaining levels 6.44% higher than current conditions. It also boosts catch yields by 10.03% and aquaculture production by 6.21%. Additionally, the model contributes to a 6.56% increase in both the fisheries sector’s GRDP and per capita GRDP. In terms of employment, the model facilitates job absorption of 59,244 workers, or approximately 7.99%. These findings suggest that the blue economy model is a viable strategy for enhancing coastal community welfare, employment, and regional economic growth while ensuring sustainable fisheries management.