The Impact of Marine Renewable Energy and Coastal MSMEs on Coastal Economic Growth in East Java

Abstract

Coastal economic growth is a key indicator of sustainable development, particularly in East Java, which has substantial potential in marine resources. However, dependence on fossil energy and the low empowerment of coastal MSMEs remain major obstacles. This study aims to analyze the impact of marine renewable energy and coastal MSMEs on coastal economic growth in East Java using a quantitative approach. Primary data were collected through surveys of 150 respondents consisting of MSME actors, fishermen, and village authorities, while secondary data were obtained from BPS, ESDM, and PLN. Multiple linear regression analysis was employed to examine the relationship between variables. The results show that marine renewable energy has a positive and significant effect on coastal economic growth (p < 0.05), reflected in increased access to sustainable electricity that reduces production costs by up to 15% and supports the modernization of MSME equipment. Similarly, coastal MSMEs contribute significantly (p < 0.01) through increased revenue, local employment absorption, and product diversification based on marine resources. Simultaneously, both variables explain 56% of the variation in coastal economic growth, highlighting the strategic role of clean energy and MSMEs in strengthening the local economic base. This study emphasizes the significance of integrating renewable energy policies with the empowerment of coastal MSMEs as a main strategy for blue economy development in East Java. The findings not only enrich the academic literature on the relationship between energy and coastal economic development but also provide concrete policy implications for local governments, investors, and coastal communities to accelerate the transition toward inclusive and sustainable economic growth.