Aquaculture is an important contributor to the Indonesian economy and has considerable potential for expansion. This publication presents the findings of a review and SWOT analysis of aquaculture development in Indonesia, and discusses the possible approaches to support its sustainable development. The authors suggest that a combination of strategies (intensification and production segmentation, areal expansion, and production diversification) is necessary to meet the Government's vision to become the world's leading aquaculture producer by 2015. A critical issue identified in the analysis is the need for improved coordination and linking of industry development efforts, such as coordination across government levels, consistent implementation of regulations, and linking of research, development, extension and training activities. The paper also highlights that 95 percent of aquaculture farms in Indonesia are smallholdings, which the authors argue could be negatively impacted by the promotion of large-scale aquaculture and changing international market requirements, unless policy development specifically addresses the issue.