The government is committed to increasing downstream in the fishery sector.
The plan involves revitalizing 78,123 hectares of ponds along the northern coast of Java to boost fishery production turnover. Several fishery commodities are planned to increase production and management to compete in the global export market.
UGM Faculty of Agriculture Professor of Fisheries Science, Suadi, believes the government’s downstream fishery efforts must also consider upstream aspects, mainly capture fisheries and aquaculture activities.
This is because capture fisheries are dominated by small-scale operations, with vessels under 10 GT (gross tons). Almost 95% of the national fishery industry relies on small boats.
“As a result, fishing areas tend to be near the coastline,” said Professor Suadi on Friday (Nov. 8).
According to the professor, Indonesia is the second-largest fish producer in the world, with China in first place. Unfortunately, Indonesia’s position as a fishery commodity exporter is relatively low compared to other countries.
Professor Suadi explained that several factors contribute to the poor performance of the fishery production and market sectors, one of which is the lack of value-added product management.
He provided an example of how captured sea fish could have added value even without processing.
“Take fresh tuna, for instance. Keeping the fish as fresh as when it was first caught, even during long-distance transport, adds value,” he explained.
The government must pay attention to the cold supply chain, which is crucial in exporting fresh fish. Other countries highly seek out commodities like shrimp, skipjack, tuna, crab, and seaweed.
For instance, the United States imports up to 396.6 tons of fresh fish, equivalent to USD 4.05 million. Meanwhile, Japan actively imports products like tuna, skipjack, and octopus, with 1.67 thousand tons valued at approximately USD 10.88 million.
Indonesia’s abundance of fresh fish commodities holds significant potential to boost the economy.
Technology can enhance added value in the pond or aquaculture sector. Seaweed cultivation is, in fact, the largest aquaculture sector in Indonesia. However, efforts to add value to seaweed products account for only a third of total production.
“Moreover, local farmers must compete with giant companies that also supply seaweed from within the country,” he said.
Downstream efforts in the fishery sector can begin from the initial production stages to the market level. Domestic producers like fishermen also need protection to avoid creating new gaps in inequality and social issues in the fishery industry.
Professor Suadi added that addressing the issue of marine exploitation, which is becoming increasingly prevalent due to overfishing, is equally important. Since 2017, the growth of offshore fish capture has not reached 6%, even though fishing activities continue on both micro and macro scales.
“The imbalance between fish availability and market demand is causing a slowdown in fish production. Therefore, the government must consider sustainability aspects when managing downstream,” he said.
Moreover, while opening investment opportunities for downstream is necessary, fishermen must be protected to prevent disparities that could harm their welfare.
Currently, the market does not absorb 20-30% of fishermen’s production, which keeps fishermen’s incomes very low.
“If this downstream policy improves the cold supply chain (fish distribution), ensuring fishermen’s catch can be properly marketed, that would be beneficial. However, if it creates competition between macro and micro scales, it will become a problem,” Professor Suadi concluded.
Author: Tasya
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photos: Canva and Freepik