Background: Cirebon coastal area generates approximately 15,000–20,000 tons of fishery waste annually, with more than 60% remaining unutilized, leading to environmental pollution and missed economic opportunities. Existing waste management policies remain fragmented among Regional Apparatus Organizations and lack an integrated framework that combines local wisdom, green economy principles, and fishery waste valorization. Objective: This study analyzes the relationships among local wisdom, green economy policy, fishery waste transformation, and waste-based economic products by examining the mediating role of an integrated policy model using Partial Least Squares Structural Equation Modeling (PLS-SEM). Methods: A convergent mixed-methods design was employed, involving 132 respondents from coastal fishery communities. Quantitative data were collected using stratified random sampling and analyzed using PLS-SEM, while qualitative data were obtained through purposive interviews and integrated through triangulation to enrich the interpretation of the findings. Results: The direct effects of local wisdom (β = 0.097; t = 0.674), green economy policy (β = 0.018; t = 0.280), and fishery waste transformation (β = 0.059; t = 0.698) on waste-based economic products were statistically insignificant. However, all three variables significantly influenced economic products through integrated policy model (p < 0.05), confirming its full mediating role. The findings indicate that institutional support, including quality standards, technical assistance, and market facilitation, is essential for successful waste valorization. Conclusion: Integrated green economy policies are critical for transforming fishery waste into sustainable economic products while reducing coastal pollution. Strengthening collaboration among government, academia, and local communities can accelerate waste valorization and enhance sustainable coastal development.
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