Enhancing Economic Sustainability of Seaweed Processing Through Value Chain Restructuring: Evidence from Indonesia’s Blue Economy

This study examines the economic sustainability of a seaweed processing enterprise in East Java, Indonesia, within the framework of the Blue Economy, by integrating value chain analysis and financial assessment. Using a case study approach, the research analyzes how operational configuration, cost structure, and financial performance interact to shape business sustainability. The results show that the enterprise operates under a production- and compliance-driven structure, with operational activities accounting for 64.64% of total costs and regulatory obligations representing 25.15%. Fixed capital is highly concentrated in processing machinery (95.06%), indicating that competitiveness is primarily driven by production efficiency and quality control. Financial feasibility was evaluated using a 10-year investment horizon and a 6% discount rate. The results confirm that the enterprise is financially feasible and profitable under current conditions. However, sensitivity analysis reveals that the enterprise is vulnerable to cost increases of up to 31% and revenue declines of up to 22%, particularly when these occur simultaneously. This finding indicates that financial resilience is highly dependent on the stability of raw material prices, export market conditions, and the effective management of export-related costs. Based on these findings, value chain restructuring pathways, including process restructuring, procurement restructuring, product restructuring, and market restructuring, are proposed to enhance financial resilience and support long-term sustainability.