Seaweed aquaculture in coastal areas is a strategic sector supporting Indonesia's maritime economic resilience. However, its sustainability remains challenged by ecological pressures, limited access to financing, and a lack of widespread adoption of sustainability-oriented business practices. This study examines the contribution of Blue Bonds to the sustainability of seaweed aquaculture systems, with particular attention to the mediating role of Environmental, Social, and Governance (ESG) indicators. An explanatory quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM), based on survey data from 100 seaweed farmers in South Sulawesi. The findings indicate that Blue Financing positively influences sustainable seaweed farming practices. However, there is insufficient evidence to support a significant mediating effect of ESG, suggesting that ESG principles have yet to be fully integrated at the farmer level. The effectiveness of blue financing is still heavily influenced by institutional capacity and cross-sectoral support. To optimize ESG’s role as a transformative catalyst, strategies such as institutional strengthening, adoption of adaptive technologies, and cross-sectoral policy interventions are crucial. This study offers both theoretical and practical contributions to the development of a more contextual and applicable Blue Finance framework for sustainable marine sector development in Indonesia.
Lestari et al. (Thu,) studied this question.
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