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Fisheries industry books solid performance as minister bids farewell
Indonesia’s fisheries industry recorded five years of solid performance as of the first half under Maritime Affairs and Fisheries Minister Susi Pudjiastuti’s administration, which is slated to end later this month when the minister is expected to leave office
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Indonesia’s fisheries industry recorded five years of solid performance as of the first half under Maritime Affairs and Fisheries Minister Susi Pudjiastuti’s administration, which is slated to end later this month when the minister is expected to leave office.
Indonesia’s fisheries industry was worth Rp 62.24 trillion (US$4.43 billion) as of the second quarter, a 6.2 percent increase from Rp 58.58 trillion in the same period last year.
The industry’s growth was higher than that of the country’s gross domestic product of 5.05 percent and the agricultural sector of 5.33 percent in the same period.
“We hope that, with the revision of the ministerial regulation, these [fisheries-related] values will increase because they are based on commodity prices in 2014,” Susi said at a press conference in Jakarta on Monday, which ended with her wishing goodbye to reporters.
The ministry’s data also shows the industry’s value grew at a 5.99 percent compound annual growth rate (CAGR) in the four years starting from Rp 189.09 trillion in 2014, when Susi took office.
The industry's growth rate under Susi, who founded seafood company ASI Pudjiastuti Marine Product, was slightly higher than the 5.17 percent CAGR under minister Sharif Cicip Sutarjo, who held office from 2011 to 2014.
The increase of the fisheries industry’s value is in line with recorded increases in fisheries production, export value and domestic consumption but also with a decrease in export volume.
According to ministry records, fisheries production grew at a 4.4 percent CAGR over the past five years to 24.32 million tons last year. Data made available on Monday says production hit 11.96 million tons in the second quarter, which more than tripled the 3.58 tons produced in the same period last year.
Susi pointed out that fisheries exports volume increased 4.45 percent to 1.13 million tons last year whereas export value increased at a steeper 7.44 percent to $4.86 million last year.
“Why is this so? Because we control the supply. We control the largest fisheries supply. Because it’s now harder for illegal fishing boats from other countries to fish in Indonesian waters. That’s why prices are better for us,” she said.
She was referring to Food and Agriculture Organization (FAO) data, which said Indonesia controlled the world’s largest share (20.06 percent) of tuna production in 2017, and to the ministry’s crackdown on illegal fishing, particularly on foreign vessels, which enabled local fishermen to catch more fish and local fish populations to recover faster.
From an international perspective, the FAO expects fish prices to rise globally over the next decade due to increased consumption in urban environments and lower fisheries production from China, the largest overall seafood producer at one-fifth of the world’s seafood.
“In quantity, world trade of fish for human consumption is expected to grow 24 percent in the projection period [2016 to 2030] and reach more than 48 million tons in live weight equivalent in 2030,” wrote the FAO in its 2018 State of World Fisheries and Aquaculture report.
In terms of domestic consumption, the average Indonesian has eaten 5.38 percent more fish each year over the past five years to 50.69 kilograms last year, according to the National Social and Economic Survey (Susenas).
The ministry helped promote fish consumption through its Community Fish Consumption Movement (Gemarikan), which piggybacked on the government’s National Movement to Scale Up Nutrition. The ministry pushed the narrative that seafood is an easily accesible and diverse source of protein.
In terms of trade, Indonesia exported 1.13 million tons of fish last year, higher than the 1.08 million tons exported in 2017 but lower than the 1.27 million tons exported in 2014, according to ministry data. Export volume actually decreased at a 2.88 percent CAGR under Susi.
Nevertheless, last year’s fish export volume remains five times higher than import volume and thus the fisheries industry has significantly contributed to reducing the country’s trade deficit.
Going forward, the ministry aims to boost Indonesia’s fish exports by enabling the country’s islands, particularly those in eastern Indonesia, to export products directly to other countries instead of shipping them through Jakarta.
The ministry’s secretary-general, Nilanto Perbowo, explained that the hurdle was that many regional ports did not meet Transportation Ministry infrastructure standards for importing and exporting products.
“What’s important for us now is that we record the fish product’s origin. So even if products moved from Ambon to Surabaya or to Jakarta, records should show it originated from Ambon. Hopefully, going forward, with the President’s maritime highway program, these regions will be able to export directly,” he said.
