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Govt to offer investors fishing quotas worth $7.7B
By granting investors commercial fishing rights worth more than $7 billion annually starting next year, the country seeks to turn fisheries into a driver of the economy.
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he government plans to offer Rp 110.2 trillion (US$7.71 billion) worth of commercial fishing rights annually starting next year as it banks on fisheries as a driver of economic development.
Maritime Affairs and Fisheries Minister Sakti Wahyu Trenggono said on Tuesday that the total quota was 4.89 million tons annually in four fishing zones within two fisheries management areas (WPP) of the archipelago.
Investors from China, Japan and Europe had shown interest in this matter, he said, adding that the European investors were keen on operating in the southern region of Indonesia due to the large population of tuna and many other deep-sea fish.
“We will offer this to foreign and [domestic] investors. We will coordinate with the Investment Ministry regarding the procedures, bidding process and permits,” Trenggono told the audience of a webinar.
According to the ministry’s data, Zone Three – which is comprised of the Maluku Sea (WPP 715) and Arafuru Sea (WPP 718) in proximity to Australia – is the largest of the four with the annual quota of 2.26 million tons estimated to be worth Rp 46.12 trillion.
The second-largest is Zone Four – comprising WPP 572 and 573 in the Indian Ocean – with an annual quote of 1.41 million tons worth around Rp 35.18 trillion, followed by Zone Two located in the Sulawesi Sea and Pacific Ocean (WPP 716 and 717) and Zone One located in the Natuna waters (WPP 711), adjacent to the South China Sea.
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The ministry hopes its plan to issue fishing quotas will reduce illegal, unreported and unregulated (IUU) fishing in the region, whether committed by local or foreign vessels.
Leaving the sector unmanaged would spell disaster for the next generation, Trenggono said, as Indonesia would lose its natural resources merely for short-term gains.
On the other hand, actively managing fisheries is expected to support the economy and exports in particular. Trenggono estimated that the ministry’s new scheme would triple the fishery sector’s contribution to foreign exchange reserves compared with the 2020 figure.
“Our estimates say it would produce $15 billion worth of additional foreign exchange reserves by 2024,” Trenggono said.
The ministry expects the fishing industry to create significant growth in investment and jobs and help nurture related industries.
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While the plan seemingly rolls out the red carpet for big corporations, Trenggono promised the ministry would reserve some of the quotas for local fishermen and another chunk for hobby and tourism purposes, with the specific amounts to be decided next year.
According to the ministry’s data, WPP 712 in the Java Sea, WPP 713 in the Makassar Strait and Bali Sea and WPP 571 in the Malacca Strait are earmarked for local fishermen using traditional methods. The three areas are estimated to contain a combined potential of 2.58 million tons of fish, plus 321,364 tons of shellfish like crab, squid, shrimp and lobster.
The ministry also vowed to count the number of fishermen in the country and help revitalize their villages. Other aid to be provided includes fuel to be supplied in a joint effort through cooperatives and oil and gas companies like state-owned Pertamina.
“That’s what we will do. We will build thousands of fishing villages over the next three years,” Trenggono said.
