Marine resources play an important role for the economy of Indonesia and the country is among the major aquaculture producers worldwide. This article presents the applicable conclusions of a study conducted in three communities in Sekotong, Lombok, which practice semi-intensive methods of pond-based aquaculture in a coastal mangrove estuary. The Indonesian government is supporting the local communities through subsidy programs with the aim to increase production and to enhance aquaculture as a viable livelihood opportunity. From our assessment we attempt to draw conclusions on ways to improve aquaculture as a sustainable livelihood, considering the social, economic and ecological settings. Key findings are a lack of knowledge coupled with problem-recognition on inefficient system conditions, which are limiting the ability to increase production. Poor pond quality in addition to the heavy degradation of the mangrove ecosystem leaves the pond system with unstable and seasonally fluctuating conditions. This hinders the potential for economic gains and the effectivity of government subsidy programs, which provide fish fry, seed and equipment. Stakeholder organizations are encouraged through government support, however, these efforts are not addressing or directed towards the underlying problem of pond-canal infrastructure, which is in part related to the poor pond conditions. We provide two recommendations, which our analysis demonstrates as potential mechanisms to improve social-ecological aquaculture development. (1) Government support should be tailored more carefully to local conditions prioritizing capacity building on good aquaculture practice as well as maintaining and monitoring pond conditions and in part by (2) focusing on the need for cooperation to develop and maintain pond and canal infrastructure. While this is a local case study, the examined system is likely similar to many other areas of pond aquaculture across the region, which have either failed in the development of shrimp farming or intend to further develop pond aquaculture in general. [ABSTRACT FROM AUTHOR]