<p>The benefits of blue economic development and coastal community development are often conflicting, as many blue economic development project holders are non-local investors and decisions on such projects tend to insufficiently involve communities. The research objective is to analyse the requirements for such interlinkages and to design, test and validate under which circumstances and for which particular products or services this is sufficiently feasible. We call for a novel research agenda which connects divergent claims and benefits. This paper employs Resource Dependency Theory to establish a framework and conduct a purposeful and context-specific literature review of documented cases in ASEAN countries, given the large number of rural coastal communities and the current blue economy policies and projects in this specific region. The first review identifies specific requirements and factors that contribute to or hinder blue economic development and coastal community development. The analysis then focuses on one or more specific case studies/case areas in Madura, Indonesia (or other locations). Hereby, we examined specific development factors, relying on statistics and socio-economic development indicators. The study demonstrates that the lack of coordination across sectoral policies (both at local and central levels) has exacerbated conflicts between communities, seaweed farmers, private enterprises and governments at both local and central levels. These conflicts demonstrate that the blue economy’s rhetoric of inclusive development is not aligned with the practical realities faced by small-scale producers. Moreover, the competition between seaweed farming, fish farming, tourism, and industrial development undermines the ability of small-scale actors to access and utilise marine resources securely. Policies that empower small-scale producers, strengthen local institutions, and promote cross-sectoral coordination would create more effective and sustainable blue economy development.</p>