The Indonesian ministry of maritime affairs and fisheries, the KKP, is exploring the potential of shrimp waste, particularly shells, to produce chitin and chitosan, key ingredients for the cosmetics industry, reports CNBC Indonesia. 

Budi Sulistyo, director general for KKP's plan to strengthen the competitiveness of marine and fishery products, said the ministry is working with businesses to process shrimp waste into these materials, with plans to cut imports within three years. Currently, much of Indonesia's shrimp side-streams remain wasted despite their potential.

KKP is also mapping out shrimp processing centers in East and West Java and is encouraging private investment to expand this emerging industry.

"We are open to partnerships with investors, and the government will support them with licensing and infrastructure," Budi concluded.