Here is a starting point, but it does not work that well and there may be insurmountable problems with my approach.
coastlineResize[pol_, dist_] := Module[{
coastlinepoints = GeoPosition /@ pol[[1, 1, 1]]},
GeoGraphics[
{Polygon@
Map[GeoDestination[#, {dist,
GeoDirection[RegionCentroid@pol, #]}] &, coastlinepoints]}]]
And we can use it like so:
coastlineResize[Entity["Country", "Nauru"]["Polygon"],
Quantity[1, "NauticalMiles"]]

This looks approximately correct to me. The key part of the code is the following:
Map[GeoDestination[#, {dist,
GeoDirection[RegionCentroid@pol, #]}] &, coastlinepoints]
We are mapping over each of the coastline points, and moving each point, using GeoDestination
by dist
in the direction from the centre of the polygon (RegionCentroid@pol
).
You'll notice I picked Nauru - that's because this is both very small and also the most circular island. There's an inherent issue with this method that going from the centre of the polygon does not work very well - instead, you should try and go from a right angle away from every pair of points. Also, finding the coastline of a polygon is actually somewhat difficult, so there is room for improvement there.