Harnessing Indonesian Seaweed Biodiversity: A Comprehensive Two‐Decade Review of Cultivation, Bioactive Compounds, and Applications

Indonesia is home to a high diversity of seaweeds, encompassing both wild and cultivated species. Over the past two decades, seaweed aquaculture production has increased 23‐fold, primarily driven by the eastern regions of the archipelago. This review systematically synthesizes two decades of research and development efforts, focusing on cultivation practices, the diversity of bioactive compounds isolated from Indonesian seaweeds, and their broad applications. It also evaluates literature and production data, highlighting the remarkable potential of Indonesian seaweeds as sources of bioactive components such as peptides, pigments, polyphenols, and polysaccharides, offering various health benefits, including antioxidant, anti‐inflammatory, anticancer, and antiviral properties. Furthermore, the review explores the potential use of seaweed across sectors, including animal feed, agriculture, cosmetics, and food, while specifically addressing the dynamics of carrageenan production in Indonesia‐currently the world's largest producer of carrageenan seaweed. Nonetheless, several challenges remain, particularly regarding sustainable farming practices, efficient bioprospecting, value chain development, and scalability of industrial applications. Addressing these issues is essential to ensure the long‐term viability and competitiveness of Indonesia's seaweed industry. This review underscores the strategic importance of integrating biodiversity utilization with biotechnological and industrial innovation to unlock the full socioeconomic and environmental potential of Indonesia's seaweed resources.