Characteristics, impacts and economic costs and benefits of blast fishing have been little investigated and they were therefore studied in Indonesia, at the scale of individual fishing households and of Indonesian society as a whole. Although illegal and highly destructive to coral reefs, blast fishing provides income and fish to a vast number of coastal fishers who claim that they have no alternative to make a living. Crew members in small-, medium- and large-scale blast fishing operations earned net incomes per month of US$55, 146 and 197 respectively. Boat owners in the same types of operations earned US$55, 393 and 1100 respectively. These incomes were comparable to the highest incomes in the conventional coastal fisheries. At the individual household level, the differences between the three types of operations show clear incentives for scale enlargement. The cost-benefit balance at the society level was calculated with an economic model. This analysis showed a net loss after 20 years of blast fishing of US$306 800 per km2 of coral reef where there is a high potential value of tourism and coastal protection, and US$33 900 per km2 of coral reef where there is a low potential value. The main quantifiable costs are through loss of the coastal protection function, foregone benefits of tourism, and foregone benefits of non-destructive fisheries. The economic costs to society are four times higher than the total net private benefits from blast fishing in areas with high potential value of tourism and coastal protection. This analysis of characteristics, impact and economics of blast fishing should help to raise the political will to ban blast fishing from Indonesian waters. Moreover, it allows for an evaluation of possible management solutions, taking into account their costs and the socio-economic framework that caused coastal fishers to start using explosives.