ASSESSING THE POTENTIAL OF RURAL-BASED BLUE ECONOMY DEVELOPMENT: EVIDENCE FROM DEMAK REGENCY, CENTRAL JAVA, INDONESIA

Abstract

The Blue Economy represents a strategic pathway for coastal regions to generate economic growth while sustaining marine ecosystems. In Indonesia, village-based Blue Economy development remains underexplored, particularly in coastal areas where local livelihoods are increasingly shifting toward marine resources. This study aims to identify the potential for village-based Blue Economy development in Demak Regency, Central Java, and to develop a sustainable coastal economic development model. This study applies the Social Business Model Canvas (SBMC) and a three-stage ecosystem framework, with primary data collected through in depth interviews, focus group discussions, and field observations in Betahwalang and Bedono Villages from July to August 2025. The findings show that village-based Blue Economy development in Demak follows two main pathways: a production- and supply chain-focused model centered on blue swimming crab in Betahwalang, and an ecological restoration and community-based mangrove model in Bedono. The blue swimming crab enterprise improves market access and cash flow for fishers but remains vulnerable to weak bargaining power and external price dependence. Meanwhile, mangrove rehabilitation generates strong social and ecological benefits but requires sustained institutional and financial support. The study concludes that achieving long-term sustainability depends on strengthening production capacity, broadening market access, increasing value-added activities, and reinforcing institutional support.