MINISTRY OF MARINE AFFAIRS AND FISHERIESMINISTRY OF MARINE AFFAIRS AND FISHERIESREPUBLIC OF INDONESIAREPUBLIC OF INDONESIA

Delivered in Indonesia – ACIAR Consultation

Jakarta, 21 February 2007

Dr. Reza Shah Pahlevi

THE ROLE OF AQUACULTURE IN DEVELOPMENT

5-year Revitalization Aquaculture Strategy

• EXPANSION OF EMPLOYMENT OPPORTUNITIES (PRO-JOB)

• POVERTY REDUCTION (PRO-POOR)

• ECONOMIC GROWTH (PRO-GROWTH)

Item 2001 2005 Growth rate (per year)

Production (tonnes) 1,076,750 2,163,674 20.14 %

Value (trillion) IDR 12.36 IDR 21.45 14.85 %

Export volume (tonnes) 519,415 (2000)

902,358 (2004) 16.69 %

Export value (trillion) IDR 1.67 (2000)

IDR 1.78 (2004) 1.67 %

Fish farmers (million) 2.19 2.51 3.43 %

Per Capita consumption of fish (kg/capita/year)

22.47 22.67 0.54 %

AVERAGE OF FISH FARMER INCOME IN FRESHWATER SECTOR, 2004

No Type of Aquaculture Fish Farmer income

(IDR million per year)

1 Ponds 17.85

2 Cages 15.36

3 Floating Net Cages 20.70

4 Paddy Field 7.45

5 Other freshwater sector 16.28

AQUACULTURE PRODUCTION AND VALUE 2001 - 2006

*) Temporary data

Year Production (tonnes) Value (trillion)

2001 1,076,750 IDR 12.36

2002 1,137,153 IDR 14.37

2003 1,224,192 IDR 16.02

2004 1,468,610 IDR 19.27

2005 2,163,674 IDR 21.45

2006* 2,414,780 IDR 19.96 

Increasing2005 2006 2007 2008 2009 2010 2011 (%/ th)

1 Shrimp 300.000 350.000 410.000 470.000 540.000 621.000 714.150 15,832 Seaweed 933.000 1.120.000 1.343.700 1.612.000 1.900.000 2.185.000 2.512.750 19,463 Grouper 12.000 15.000 19.000 24.000 30.000 34.500 39.675 25,754 Tilapia 98.000 120.000 140.000 170.000 195.000 224.250 257.888 18,815 Milkfish 285.000 320.000 360.000 400.000 475.000 546.250 628.188 13,666 Pangasius catfish 16.500 20.000 25.300 30.300 36.500 41.975 48.271 21,987 Clarias catfish 80.000 95.000 115.000 140.000 175.000 201.250 231.438 21,648 Gouramy 28.400 31.300 34.400 38.000 45.000 51.750 59.513 12,259 Ornamental fish 5.000 6.000 7.200 8.640 10.200 11.730 13.490 19,5110 Abalone 1,5 10 50 150 500 575 661 35011 Others 490.099 548.490 634.150 754.410 862.800 992.220 1.141.053 15,22

Total 2.248.000 2.625.800 3.088.800 3.647.500 4.270.000 4.910.500 5.647.075 17,4

No CommoditiesTarget

YEAR ACHIVEMENT

2005 86 %

2006* 98 %

*) Temporary data

HIGH POSSIBILITY THAT THE PRODUCTION TARGET ON 2011 WILL BE ACHIEVED

Note:2001 – 2006: Production2007 – 2011: Target

0

1000000

2000000

3000000

4000000

5000000

6000000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(Year)

(Pro

du

cti

on

in

To

nn

es)

AREA POTENTIAL AREA

( MILLION HA)

IN USE

(%)

FRESHWATER 2,23 10,1

BRACKISHWATER 1,22 40

MARICULTURE 12,14 0,01

TOTAL 15,59 50,11

STRENGTHS OF INDONESIAN AQUACULTURE

HIGH BIODIVERSITY

EXTENSIVE AREA

GEOGRAPHY AND CLIMATE

HUMAN RESOURCES

HAS POTENTIAL TO BECOME MAJOR WORLD PLAYERHAS POTENTIAL TO BECOME MAJOR WORLD PLAYER

1. ENVIRONMENTAL DEGRADATION

2. SUSTAINABLE DEVELOPMENT

3. FOOD SAFETY (antibiotic residue)

4. GMO

5. ECO LABELING

6. TRACEABILITY

AQUACULTURE DEVELOPMENT AQUACULTURE DEVELOPMENT

SHOULD APPLIED CCRFSHOULD APPLIED CCRF

AQUACULTURE DEVELOPMENT AQUACULTURE DEVELOPMENT

SHOULD APPLIED CCRFSHOULD APPLIED CCRF

VISION :AQUACULTURE which is COMPETITIVE and SUSTAINABLE as a MAJOR CONTRIBUTOR TO ECONOMIC GROWTH

MISSION :1. Create bussiness opportunities and provide

employment2. Produce high quality fish in an efficient manner3. Develop an aquaculture sector which is responsible

and environmentally friendly

1. Increase foreign exchange earning, fish farmers income, and create employment and business opportunities;

2. Improve nutritional quality of the people diet through the fish consumption;

3. Protect and rehabilitate fisheries resources.

Tilapia culture in Freshwater Aquaculture Development Centre in Sukabumi

Seaweed Culture

1. Increase aquaculture production for export, with special focus on increasing competitive advantages through the development and application of efficient and environmentally friendly technology;

2. Development of aquaculture production for in-country consumption, with special focus on increasing and strengthening the farming of area-specific (local) commodities and improving community-built ponds;

3. Establishing mechanisms for controlling the use (exploitation) of aquaculture resources, with especial focus on increasing the attention paid towards the conservation of fish and other aquaculture resources.

Koi crap farm in West Java Province

1. Mariculture zone

2. Brackishwater zone

3. Freshwater zone

Shrimp culture in Banggai – Central Sulawesi Province

• Well-developed technology spreading to the grass-roots

• High export market potential

• High uptake from overseas markets

• High employment prospects

• Well-developed technology spreading to the grass-roots

• High export market potential

• High uptake from overseas markets

• High employment prospects

SHRIMP/PRAWN (vaname and tiger prawn)

SHRIMP/PRAWN (vaname and tiger prawn)

SEAWEED (Euchema and

Gracilaria)

SEAWEED (Euchema and

Gracilaria)

• Low fuel requirement• Relatively low capital

investment

• Low fuel requirement• Relatively low capital

investment

• Well-developed technology spreading to the grass-roots

• High export market potential

• High uptake in the domestic market

• Relatively low capital investment

• High employment prospects

• Low fuel requirement

GROUPEROsphronemus gourammyOsphronemus gourammy

GOURAMY

TILAPIA

CATFISH

ABALONE

MILKFISH

BOTIA (Botia macracanthus)

Clown LoachORNAMENTAL FISH

PANGASIUS CATFISH

RPB up to 2009 Rp 13.41 trillion

Government Investment

Rp 3.06 trillion

Working Capital Rp 10.35 trillion as follows :Rp 9.70 trillion for small and

medium enterprises Rp 656 billion for large

enterprises

Investment Cost

Rp. 2.92 trillion

Working Capital Rp. 7.43 trillion

(1) Rehabilitation of tambak irrigation systems, (2) hatchery improvement, (3) optimisation of fish health & environment laboratories, (4) development of mariculture sites, (5) development of brackish-water sites, (6) development of fresh-water sites, (7) TASK FORCE operations, (8) Service Development Unit (UPP) development, (9) extension by technical staff, (10) stimulation of working capital for hatcheries.

Site development and long-lived machinery (aeration paddles, pumps, feed pelleting machines, etc)

Seed, feed and chemical inputs

Budget Requirements (billion Rp.)

No Target/Activity 2006 2007 2008 2009 Total

AGovernment Investment

360.44 438.83 785.61 1,479.17 3,064.05

BWorking Capital Requirements (1-5)

1,777.41 2,278.12 2,623.80 3,676.55 10,355.88

1 APBN National Budget 53.32 68.34 78.71 110.30 310.68

2 APBD Local Budgets 35.55 45.56 52.48 73.53 207.12

3 Private Sector 177.74 227.81 262.38 367.65 1,035.59

4 Banking Sector 1,475.25 1,890.84 2,177.75 3,051.54 8,595.38

5Other Sources of Finance

35.55 45.56 52.48 73.53 207.12

Total (A+B) 2,137.85 2,716.95 3,409.41 5,155.72 13,419.93

CAPITAL STREGTHENING

EASTERN IDR 31.8 B (65%)

Timur

Barat

WESTERN IDR 16.8 B (35%)

Timur

Barat

WESTERN IDR 30.3 B (55%)

EASTERN IDR 24.9 B (45%)

Timur

Barat

WESTERN IDR 35.3 B (61%)

EASTERN IDR 23.5 B (39%)

Financing Requirements (billion Rp.)

2006 2007 2008 2009 Total 1 Shrimp 795.034 976.713 985.948 1.438.785 4.196.4802 Seaweed 46.232 54.747 65.663 70.485 237.1263 Nile tilapia 389.250 454.125 551.438 648.750 2.043.5634 Catfish 57.238 138.575 171.500 316.313 683.6255 Pangasius 167.500 211.888 253.763 305.688 938.8386 Gouramy 32.568 59.655 92.258 140.468 324.9487 Grouper 210.940 278.617 354.204 455.719 1.299.4798 Milkfish 34.300 38.588 42.875 50.914 166.6779 Oenamental fish 44.354 44.743 44.743 44.743 178.58110 Abalone 0 20.469 61.406 204.688 286.563

1.777.415 2.278.119 2.623.796 3.676.550 10.355.879Total

Business FinanceNo Commodity

Promoting micro, small & medium enterprises, for: (a) providing increased employment; (b) strengthening family business; © reducing poverty

Promoting the involvement larger / big enterprises in processing sector and marketing, specially for export;

Creating conducive condition

1. Development of demonstration units

2. Development of partnership between nucleus and plasm

3. Use National budget as a cash collateral in bank

4. Cooperate with banks to reduce the interest rate for aquaculture business

5. Increase number of training fish farmers

6. Develop for Aquaculture zones

7. Increase promotion and investment opportunities, either for local and international investment

8. Apply national standards

9. Increase the work effectiveness of UPT

10.Increase the role of Local Government in providing financial assistance to farmers from Local Budget Allocations (APBD)

11.Provide incentives for investors

12.Strengthen UPP

1.Developing working partenership with bank institutions

2.Improving budget structure from province to districts / municipalities

3.Promote fish farmers friendly banking rule & regulation

1. Increase in aquaculture production for export (PROPEKAN);

2. Increase in aquaculture production for in-country consumption (PROKSIMAS);

3. Protection and rehabilitation of aquaculture resources (PROLINDA)

(1) Infrastructure for Aquaculture Development;

(2)Seed Production Systems Development;

(3) Production Systems Development ;

(4)Fish and Environmental Health Management Systems Development;

(5)Aquaculture Business Systems Development; and

(6)Administrative and Organizational Systems Development.

1.Aquaculture zone development: (i) Mariculture: seaweed, grouper, abalone, and others; (ii) brackishwater: shrimp, brine shrimp, milkfish, and others; (iii) freshwater: tilapia, pangasius catfish, clarias catfish, gouramy, and others.

2. Improve hatchery quality: (i) strengthening Broodstock Centre capability, (ii) improving broodstock quality, (iii) increasing capacity building of human resources on hatchery management.

3. Guiding and Controlling : Implementing on aquaculture quality through Indonesian National Standard and certification on hatchery and grow-out.

4. Strengthening Infrastructure and Physical Equipment on aquaculture area through manage special budget allocation (DAK).

FIS/2002/111: Culture, capture conflicts: sustaining fish production and livelihoods in Indonesian Reservoirs

FIS/2000/061: Development and delivery of practical disease control programs for small-scale shrimp farmers in Indonesia, Thailand and Australia

FIS/2002/075: Application of PCR for improved shrimp health management in India, Thailand and Indonesia

FIS/2003/027: Planning tools for environmentally sustainable tropical finfish cage culture in Indonesia and northern Australia

FIS/2002/076: Land capability assessment and classification for sustainable pond-based aquaculture systems

FIS/2002/077: Improved hatchery and grow-out technology for marine finfish aquaculture in the Asia-Pacific region

FIS/2005/028: Technical training and capacity building program for the restoration of Tsunami-impacted brackishwater aquaculture ponds in Aceh

ADB PROJECT: SUSTAINABLE AQUACULTURE DEVELOPMENT FOR FOOD SECURITY AND POVERTY REDUCTION (LOAN NEGOTIATION, SIGNED, LOAN AGREEMENT, UNDER PROCESS)

WORLD BANK: FISHERIES REVITALIZATION PROGRAM (UNDER NEGOTIATION PROCESS)