Indonesia’s seafood processing sector is expected to grow by 20 percent this year – as long as the government works to remove regulations hampering its growth, according to an Indonesian seafood business group.
The trade association Indonesian Businessmen on Fisheries Product Processing and Marketing (AP5I) said the country’s exports of fisheries products processing last year increased 5 percent over 2018. But it said the sector’s growth could have been much larger if it weren’t for a lack of raw material. The sector’s industrial machine utility only reached 50 to 60 percent, making Indonesia’s sector less competitive in comparison with India, Vietnam, and Thailand, it said, Antara News reported 19 January.
Budhi Wibowo, AP5I’s leader, said Indonesia’s fisheries export value is around USD 5 billion (EUR 4.51 billion), far behind its neighbor and rival, Vietnam, which has achieved nearly USD 9 billion (EUR 8.11 billion) in seafood exports in recent years.
"To pick up the pace, we need all stakeholders, both the government and private sector, to work hand-in-hand,” he said.
Indonesia’s Ministry of Maritime Affairs and Fisheries is reviewing regulations that it said are hampering development of the fisheries industry, Wibowo said. Among the regulations set for review and possible revision are restrictions on fishing-vessel tonnage, ship-to-ship transfer regulations, and bans on certain types of fishing tools.
Marine Affairs and Fisheries Minister Edhy Prabowo said in November 2019 his ministry would seek to ease the licensing process in the capture fisheries sector in an effort to boost production, according to Antara News.
In November, Prabowo expressed optimism that the fisheries production will reach 10 million metric tons (MT) in 2019, out of the country’s estimated fisheries reserves of 12.54 million MT.
Since his appointment, Prabowo has also reversed two major conservation-oriented – but controversial – policies of his famous predecessor, Susi Pudjiastuti.
The Jakarta Globe reported in November Prabowo was working to halt to Pudjiastuti’s hardline policy of sinking illegal fishing vessels, instead giving boats seized for illegal activity to local fishermen. However, the policy has been credited with creating an increase in biomass in Indonesian waters, reducing the amount of IUU fishing in Indonesia, and for improving the economic outlook for local fishermen.
Prabowo also proposed the reversal of a ban on exporting lobster larvae implemented by Pudjiastuti. Prabowo justified the decision by saying it would produce more income for fishermen and the government, The Jakarta Globe reported on 17 December.
Photo courtesy of Cliff White/SeafoodSource
