Fostering Sustainable Livelihoods in Indonesia: Economic Determinants of Productivity and Welfare in Capture Fisheries

Abstract

Abstract. Indonesia’s capture fisheries sector is crucial for economic development and food security, yet the welfare of small-scale fishers remains persistently low due to fluctuating income, limited infrastructure, and weak institutions. This study aims to analyze the economic determinants influencing the productivity and welfare of fisher households in Pinrang Regency, South Sulawesi. Employing a quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS), this research investigates how institutional strengthening, empowerment, and infrastructure impact fisher productivity and economic welfare. Data were collected through structured questionnaires administered to 100 fishers and analyzed using SmartPLS 3.0. The results reveal that institutional strengthening significantly influences productivity (β = 0.379, p < 0.01) and welfare (β = 0.533, p < 0.001), while infrastructure also exerts a positive effect on both productivity (β = 0.237, p < 0.05) and welfare (β = 0.217, p < 0.05). Empowerment, however, shows no significant effect (p > 0.5). The model explains 63.2% of the variance in productivity (R² = 0.632) and 84.8% in welfare (R² = 0.848). Productivity serves as a mediating variable, with significant indirect effects between institutional strengthening and welfare (β = 0.104, p < 0.05). The findings highlight the importance of robust institutions and integrated infrastructure in fostering sustainable livelihoods. This study contributes to policy design by emphasizing localized, data-driven strategies that align with the needs of coastal communities. Its implications extend to improving economic welfare, promoting inclusive development, and supporting Sustainable Development Goals (SDGs), especially in vulnerable coastal zones Keywords: Capture fisheries, Fostering Sustainable Livelihoods, Infrastructure, Productivity, Economic Welfare