Indonesia Fisheries Market: A Brief Introduction

Authored by : Fitri Aulia | 3 November 2020

Having known as the largest archipelagic nation and world’s largest maritime country, with 17,480 islands and around 70 percent of its total territory is water, Indonesia plays a big role in marine resource industries across the globe. It become among the top five of fishery and aquaculture major key players in the world.

TRENDS

The fisheries sector plays an important role in Indonesia’s economy through income generation. Among the five main export destination countries, one includes Japan with a value of USD 143.82 million (11.59%) in 2020.

There are various types of exported commodities, namely TTC (Tuna, Tongkol, Skipjack Tuna /Cakalang) as well as shrimp and octopus.

Its tuna fisheries are among the largest producers worldwide. According to Indonesia’s Report to Regional Fisheries Management Organization (RFMO), in 2017, Tuna catch amounted to 646.000 tons. Though it has experienced a slight contract from the previous year, it is also stated in the report that Indonesia accounts for 16 percent of global tuna production.

In April 2020, The Indonesia Ministry of Marine Affairs and Fisheries conducted a press release claiming that Shrimp dominated exports with a value of USD 466.24 million. Followed by Tuna, Tongkol, Skipjack Tuna/Cakalang (TTC) with a value of USD 176.63 million, Cuttlefish-octopus with a value of USD 131.94 million, Crabs with a value of USD105.32 million, and seaweed with a value of USD 53.75 million.

Source: The Indonesia Ministry of Marine Affairs and Fisheries (Infographic made by IRIJ)

Amidst the Covid-19 global pandemic, optimism has emerged from the marine and fisheries sectors. The Ministry of Marine Affairs and Fisheries (KKP) noted that fishery product exports in the first semester of 2020 reached USD2.4 billion, an increase of 6.9% compared to the same period last year. Based on data from the Central Statistics Agency (BPS), the export value of Indonesian fishery products in March 2020 reached USD 427.71 million, showing an increase of 6.34% compared to exports in February 2020. Meanwhile, compared to March 2019, it increased by 3.92% (Data could be seen in the Table Below).

Source : Badan Pusat Statistik (Infographic made by Seafood-tip)

The increase in the value of Indonesian fisheries exports during the first semester of the 2020 period was influenced by the restrictions on imports from China as one of the largest exporting countries due to the coronavirus outbreak in that country. As a result, the activities of exporting countries such as Indonesia have also diverted the direction of exports to the US and European markets, which are the largest markets for shrimp and TTC.

What are the Business Opportunites?

During this pandemic, when everything was knocked backward, the preparation of the food sector experienced an increase in seafood production. In Indonesia, overall, fish consumption shows an increasing trend year by year. According to The Ministry of Marine Affairs and Fisheries (KKP), Indonesia’s fish consumption has reached 55.95 kg/capita per year in 2019. The KKP is targeting an increase in the national fish consumption rate from 56.39 kg/capita/year in 2020 to 62.50 kg/capita/year by 2024.

They plan to increase this by maximizing sources from fishing activities and aquaculture of fishery products in Indonesia. The aquaculture commodity itself includes freshwater fish, non-shrimp marine fish, and shrimp. Harvest locations are scattered in several areas such as Aceh, Bengkulu, North Sumatra, South Sumatra, Lampung, Riau Islands, Bangka Belitung Islands, Central Java, East Java, West Java, Bali, West Nusa Tenggara, South Sulawesi, West Sulawesi, Central Sulawesi, Kalimantan to Maluku.

The Most Consumed Type of Fish

According to a survey conducted by the Ministry of Communication and Informatics, they are TTC (Tuna, Tongkol, Cakalang), Mackerel, Anchovy, Tilapia fish, Parrotfish, Milkfish, Selar, and catfish.

National Program to Increase Fish Consumption

To increase fish consumption, since 2004 the KKP has initiated a national program to promote fish-eating (GEMARIKAN) which carried out various activities, including open campaigns, public service advertisements broadcasting, and all-fish cooking competitions. The Ministry of Marine Affairs and Fisheries (KKP) also has continuously collaborated with related ministries and agencies to protect fishermen and other business actors in the Indonesian marine and fisheries sector. This includes the participation of State-Owned Enterprises (BUMN) such as PT. Perinus (Perikanan Nusantara). If anything, these opportunities during pandemic open a huge chance in maximizing the overall productivity of the Indonesia Fisheries Sector.

References

(KKP), The Ministry of Marine Affairs and Fisheries. 2020. 2020, KKP TARGETKAN KONSUMSI IKAN 56,39 KG . Jakarta: KKP.

Informatics, Ministry of Communication and. n.d. Konsumsi Ikan (Jenis Ikan Paling Banyak Dikonsumsi). Jakarta.

KKP. 2020. Pandemi Covid-19, Estimasi Panen Perikanan Budidaya Capai 450 Ribu Ton Sepanjang April Hingga Juni 2020 . Jakarta: KKP.

KKP. 2020. TRIWULAN I 2020, NILAI EKSPOR PERIKANAN CAPAI USD1,24 MILIAR . Jakarta: KKP.

Tip, Seafood. 2020. Members’ Trade Data Analysis: Indonesia Q1 2020 Summary. https://seafood-tip.com/members-trade-data-analysis-indonesia-q1-2020-summary/.

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Indonesia New Lobster Export Policy

Authored by : Fitri Aulia | 21 October 2020

In May 2020, Edhy Prabowo (Current Minister of the Ministry of Marine Affairs and Fisheries) officially revoked the regulation on the export ban on lobster seeds (known locally as benur) that the previous minister (Susi Pudjiastuti) had made. It is marked under the new ministerial regulation (Permen), namely Permen KP No.12 / Permen-KP / 2020 concerning the Management of Lobster (Panulirus spp.), Crab (Scylla spp.), and Rajungan (Portunus spp.) in the Territory of the Republic of Indonesia.

The New Regulations

This policy change is enough to leave a hot debate all across the country. One might say that it is quite controversial, given the regulation made by the previous minister emphasizing a ban on the export of lobster seeds in 2016 was later changed to the contrary.

Minister Edhy Prabowo (Source : KKP)

Minister Edhy claimed to has several reasons to consider these policy changes.

Quoting an interview held by one of Indonesia’s media (Kompas Media), Edhy said that the egg production of lobsters in Indonesia is an opportunity to take advantage of. According to him, lobsters in Indonesia can produce approximately 27 billion lobster eggs if it were to be based on the assumption that one lobster is able to produce 500,000 eggs.

With these much amount of egg production, increasing export becomes one of a profitable choice. He claimed that the policy change has carried out solely for the welfare of the people. Based on Edhy’s assessment, Edhy found that 80 percent of the lobster seeds imported to Vietnam from Singapore came from Indonesia. This has made the price of lobster seeds increased up to Rp. 139,000 per seed from Rp. 50,000 to Rp. 70,000 per seed. This is considered to be beneficial for the local fishermen whose lives depend on it.

Minding that he also claimed that the survival rate of lobster eggs in the wild reached only 0.02 percent, which means that for every 20,000 lobster eggs, only one egg will reach maturity. In other words, he reckon that releasing lobsters into the wild is actually harmful for both of its own wellbeing as well as our economy. To further add, he denied that the lifting ban of lobster seed exports could threaten the sustainability of the ecosystem. Thus, legalizing exports is considered useful for closing the gap of possibilities for smuggling activities.

On the contrary

Responding to this new policy, in an online discussion held in June 2020, Susi Pudjiastuti stated that the policy she previously made on banning lobster seed exports was based on the consideration that there is still no adequate technology for lobster cultivation as well as the sustainability of resources. Limiting lobster fishing is believed to be the best way to maintain the availability of this resource in Indonesian waters.

Conservationists and experts have widely criticized the new policy changes, saying the lack of monitoring and law enforcement in the export chain, coupled with inadequate infrastructure to develop a viable lobster aquaculture, poses a threat to the existence of lobsters and local fishermen in Indonesia. They have called on the government to instead prioritize a sustainable lobster aquaculture in the country, involving the local traditional fishermen rather than intensify exports activities.

About Indonesia Benur

Indonesia is one of the largest lobster seed producing countries in the world. Among its diverse types, Panulirus spp. is the most commonly commodities found in the waters.

Lobster seed (Source : KKP)

Indonesia first started their lobster cultivation in 2000. In this matters, Indonesia lags behind Vietnam (one of its biggest competitor in Southeast Asia), which started lobster cultivation since 1992.

The main lobster markets export of Indonesia is China. Meanwhile in Southeast Asia, Indonesia main lobster exports destination are Singapore.

Current Status Quo

There is a rising demand of this commodities in 2020 following a huge increase in the sector of export activities months after the policy change. Quoting from Tempo Indonesia (a nation local media) basing on data by BPS, In July 2020, lobster seed exports reached US$3.67 million with 1,789 kg, soaring from US$112,900 in June 2020 . The August export figure even jumped by 75.2 percent from that of July 2020. This shows a tremendous improvement in just a short period of time.

To Reach the Environmental Sustainibility

Regardless of the distinct opinion happening all across the country, one must make sure to not only emphasize the economical matters from the fisheries sector, but also to put concern on how to maintain the sustainability of nature and environment.

To talk about sustainability, there is a strong interlinkage between the fisheries sector and the UN Sustainable Development Goals(SDGs).

First of, it is pretty obvious the production of both wild capture and aquaculture generates income to support local and national economies for that it also provide employment opportunites in this sector, thus working towards objectives of the SDG 1 (No Poverty).

It also improves the nutrition and safeguards for food security and ensures healthy lives of many people, reaching the objectives of SDG 2 (No Hunger) and SDG 3 (Good Health) respectively. But what it is to be highlighted here, is that the exporting activities must be balanced with support for the cultivation process, especially for small seeds.

In case of Indonesia, the government provides a number of conditions that must be implemented in the current management of lobster fisheries so that overfishing does not occur, such as setting lobster seeds catch limits.

In present, there is an urgent need to expand programs, initiatives and projects by all stakeholders to improve fisheries and aquaculture management and conservation to address the sustainability of environment for it is as well aligned with the SDG 14 (Life Below Water).

References

Kompas Media. 2020. Kata Edhy, Larangan Ekspor Benih Lobster Banyak Merugikan Masyarakat. July 10. https://money.kompas.com/read/2020/07/10/063638026/kata-edhy-larangan-ekspor-benih-lobster-banyak-merugikan-masyarakat?page=all.

Mongabay. 2020. Ketika Susi Pudjiastuti Ikut Bahas Polemik Ekspor Benih Lobster. July 28. https://www.mongabay.co.id/2020/07/28/ketika-susi-pudjiastuti-ikut-bahas-polemik-ekspor-benih-lobster/.

Tempo. 2020. Lobster Seed Exports Jump 75 Percent in August: BPS . September 21. https://en.tempo.co/read/1388724/lobster-seed-exports-jump-75-percent-in-august-bps.

Tridge. 2018. Top Exporting Countries of Lobster. https://www.tridge.com/intelligences/norway-lobster/export.