Between exploiting and sustaining Indonesia's rich maritime resources

The Jakarta Post ,  Jakarta   |  Wed, 07/25/2007 11:50 AM  |  Opinion

Art Whitehead, Grimsby, North East Lincolnshire, UK

Protection and sustainability of Indonesia's precious resources is now a key government priority and public awareness of these issues is ever increasing.

From global warming to personal health and welfare, populations around the world are now challenging their Governments to implement policies that encourage economic growth whilst at the same time protects their environment and future heritage.

An interesting implication of these issues can be discovered when applied to the Indonesian Fishing Industry. The Eastern Islands lie on one of the most fertile fishing grounds on our planet and provide a traditional livelihood for millions of Indonesians. Having visited most of the major fishing ports and markets in this diverse and beautiful country, I have witnessed, first hand, a hive of activity from the use of traditional fishing boats, to modern factory processing plants as well as observing the apparent chaos of the selling of fish at auction.

The supply chain from capture to the dining table is complex and involves many processes, employs a large number of people and is a key management issue for the Ministry of Maritime Affairs and Fisheries. Herein lies the dilemma, how to improve and modernize the fishing industry to equip it to service growing global markets, whilst balancing this against established practices for the Indonesian domestic market.

Fishermen, processing companies and sellers in general, view the processes, procedures and inspection requirements of export markets as cumbersome and as a cost implication when compared to operating the domestic supply chain systems. These domestic systems are well established, based upon tradition and the age old ways of ""doing-business"" passed down from generation to generation.

However, due to other economic trends, the recent increases in the price of fuel has and is having a derogatory impact on the fishing business in Indonesia. Coupled with the uncertainty of domestic market prices for raw fish, the increased costs of capture mean that many businesses are facing a wave of increased costs and lower revenues.

You may well ask, ""How are all of these issues inter-related and what are the implications?"" Well, not surprisingly one may conclude, there is a possible scenario that ensures a win-win situation for both the Indonesian fishing industry and the ever increasing health conscious population in the European Union (EU).

Consumer demand in the EU for high quality food products, at the right price with appealing texture, look and taste has soared over recent times. Supermarkets in the EU now use sophisticated labeling and packaging techniques to inform the consumer that the product is sourced from an environment that is sustainable, contains the right balance of protein, carbohydrate and fats, a well as presenting the product in an appealing package. All of these factors will determine whether or not the product sells.

Fish and fish products are now viewed by many in the EU as a food which meets all of their demands for healthy living, being 'kind' to the environment and as a means of avoiding heart disease -- a major killer in the western hemisphere. Sales have soared over the last five years and fish is viewed as the modern health food.

Hence, there is a captive and growing market for high quality Indonesian fish products in the EU which could provide a sustainable source of revenue for Indonesian Companies, offset the effects of domestic financial pressures and contribute to the modernization of the domestic supply chain. Rather than view the EU requirements for safe handling practices of fish products as overbearing and costly, an opportunity now presents itself to those companies who wish to expand and sustain their business, by accessing, what for some, is a new market.

Through the application of simple system improvements, safe handling techniques, traceability and hazard controls in supply chain operations, EU approval is achievable and practical for many companies in Indonesia. The management of supply chains are both sophisticated and well established in the EU and the UK has been recognized as a world leader in this field. Utilizing this expertise and adapting practices that work in Indonesia through knowledge and technology transfer, will open up a wealth of opportunity for Indonesian-based fishery companies.

A practical example is currently underway involving a unique partnership between Indonesia and the UK which is piloting an export initiative program. Based upon extensive research of the principles involved in the export of fish, both here in Indonesia and the UK this pilot will demonstrate the benefits that an export market can bring to both consumers in the UK and the Indonesian supplier and processors. By combining Good Manufacturing Practices, timely accredited laboratory analysis and efficient logistics management, a link between the application of traditional practices to a modern and efficient supply chain will be established.

It is hoped that the pilot will be viewed as an example of good practice and serve as a beacon to both suppliers and processors here in Indonesia, that shines new light on the benefits that access to an export market can bring to revitalizing and modernizing the domestic fishing industry.

By sharing good practice, giving appropriate guidance and support where necessary, it will be demonstrated that through the adaptation of traditional food handling processes to a modern supply chain, fresh healthy food sourced from Indonesia can be delivered to the global consumer, whilst at the same time bringing the economic benefits to the host nation, so desperately needed at this time.

The writer is Managing Director of ISART Fish Export sales and marketing, UK Ltd. He can be reached at Arty_sax@yahoo.co.uk.

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