The Impact of Implementing the Blue Economy and Green Economy Concept for Improving the Welfare of Coastal Areas in the Meranti Islands

Indonesia is called a maritime country because it is the largest archipelago in the world. This is supposed to make Indonesia a developed country with potential natural resources to improve the welfare of its citizens, especially the coastal population. However, in reality, the poverty rate in coastal areas is still very high, especially in the Meranti Islands. The Meranti Islands are the center of attention because they have the potential for rich marine natural resources and coastal ecosystems. Despite this, economic, environmental, and social challenges are still a reality in the local community. In order to improve the community’s welfare, it is necessary to solve a number of economic difficulties in the Meranti Islands. The environmental, social, and economic spheres are all touched by a few of these challenges. To tackle these complicated difficulties, people are looking to the ideas of a “blue economy” and a “green economy” for long-term improvements in community wellbeing. The primary objective of this research is to determine how the Meranti Islands’ coastal villages would fare if the blue economy and green economy were to be implemented. The purpose of this research is to determine how the Meranti Islands’ coastal communities might benefit from implementing blue economy and green economy principles. As an intermediary variable, the blue economy and green economy should be included in the SEM-PLS model. The findings demonstrated that enhancing the welfare of coastal communities is directly and significantly influenced by both internal and external causes, community empowerment measures, and the concept of the blue economy. Additionally, it was discovered that the idea of a “blue economy” might operate as a mediator between outside forces and community empowerment initiatives, therefore enhancing community well-being. This suggests that the Meranti Islands’ coastal people can benefit from an externally focused empowerment strategy and the blue economy concept in a more optimal way, allowing for the sustainable economic development of marine resources.