Blue Economy-Based Sustainable Economic Development Strategy through Coastal MSME Empowerment and Digital Innovation in Sidoarjo Regency

Abstract

This study examines strategies for developing a sustainable economy through a blue economy approach by strengthening Micro, Small, and Medium Enterprises (MSMEs) in coastal regions and implementing digital innovation in Sidoarjo Regency, which is renowned for its fisheries and aquaculture activities in East Java. The research employs a descriptive qualitative method using a case study approach, with data gathered through in-depth interviews with MSME actors in coastal areas, local government officials, and analysis of relevant policy documents. Thematic analysis was conducted focusing on five key dimensions: policy support, innovation, infrastructure, digital adoption, and sustainability practice. The findings indicate that coastal MSMEs in Sidoarjo hold significant economic potential, particularly in the marine product processing sector, but face major challenges, including limited market access, inadequate logistics infrastructure, and low levels of digital literacy. Environmentally friendly aquaculture initiatives remain fragmented and not yet integrated into mainstream policy. Conversely, digitalization is creating new opportunities to expand market reach through e-commerce and online platforms, although additional capacity building and training are required. Local government policies are considered crucial for providing necessary infrastructure, strengthening sustainability regulations, and developing international partnership networks to extend export value chains. Overall, the study emphasizes that blue economy strategies based on digital innovation and MSME empowerment can serve as a model for sustainable coastal economic development, highlighting the importance of collaboration among government, businesses, academia, and international partners to accelerate inclusive, innovative, and globally competitive coastal economic transformation.