Fisheries News

Transformasi Roundtable Series (TRS)
Transformasi Roundtable Series (TRS)
Jakarta, Transformasi—The contribution of the fisheries sector to the Gross Domestic Product (GDP) is still relatively small. The Central Statistical Agency (BPS) has recorded that in Quarter 3 of 2015, this sector contributes around 2.46 percent to GDP. This is a paradox if we look at how large the water territory of Indonesia is, reaching 2/3 of the total area of its territory. 

Senior Advisor of Center for Public Policy Transformation (Transformasi), Sarwono Kusumaatmadja, Wednesday (18/11), said that the disparity between potential and actual use is caused by three primary issues, namely illegal fishing, unreported fishing, and unregulated fishing, or IUU Fishing. 

The Ministry of Marine Affairs and Fisheries (MMAF) predicted that the loss caused by IUU is around Rp. 3,000 trillions. This is not including the loss caused by destroyed sea ecosystem as a result of excessive fishing and sea exploitation that ignores conservation aspects. 

“The loss caused by IUU, and misfired subsidies may not have been fully reflected. Therefore such loss estimation, and the loss of potential benefits, can still increase,” said Sarwono. 

Strict measures implemented by the Ministry of Marine Affairs and Fisheries to drive out and destroy foreign ships stealing Indonesian fish are able to drastically reduce fish snatching from Indonesian waters. As a result, stolen fish in Asian market is difficult to obtain. About 60 percent of fisheries processing products in Asia are collapsing. The field study result from the IUU Fishing Task Force Team predicts that with the drastic decline of IUU fishing, Indonesian current fisheries potential is about 7,3 million tons per year, excluding tuna. We can utilize this potential in a sustainable manner. 

Unfortunately, such large potential resulting from the positive impact of foreign ship moratorium is yet to be used well. The problem is, from 618,000 fishing boats/ships in Indonesia, 70 percent of them are non-motorized boats and outboard engine boats, which on average are under 3 GT. Ships with such capacity are unable to conduct fishing operations for a full year and have limited areas they can venture into, particularly with the weather in Indonesia changing four times in a year. If ignored, this situation is prone to bring back IUU fishing, especially since the foreign ship moratorium has been lifted on 1st November 2015. Therefore, it is necessary to come up with the right and sustainable policy to resolve this problem, especially a fisheries management policy that is productive and environmentally friendly, in addition to strong law enforcement aspect. 

Transformasi Roundtable Series

With regards to that, Transformasi, as a networked think tank that focuses on advocating for good public policy in the marine and fisheries sector, is holding the Transformasi Roundtable Series (TRS) in order to formulate recommendation for the policy to eradicate IUU Fishing in a fast and effective way. 

For the first of the series, the TRS will be held on Wednesday, 18th November 2015 in the Esquire Meeting Room, Mandarin Oriental Hotel, Jakarta, starting from 09.00 to finish. The discussion themed “Financing Sustainable Fisheries Industry” will be attended by representatives of policy making institutions in fisheries and financing sector, including: MMAF, Financial Services Authority (OJK), banking, collateral insurance institution, fisheries product processing companies, associations in the fisheries sector, fisheries enterprises, academics in fisheries, and a number of civil society organizations. 

Sarwono said that the theme of financing sustainable fisheries industry is selected because the effort of utilizing fisheries resources sustainably requires a significant financing scheme. Engaging private and banking sector in financing will provide a substantial leverage to the contribution of this sector to the economy, and promote the welfare of the fishers. 

“Therefore, government funding can be concentrated to protect and recover the health of the sea,” Sarwono continued.

In May 2015, MMAF, with OJK, eight banks and two non-bank financial institutions, launched the “Jangkau, Sinergi, dan Guideline (Jaring)” Program to improve lending to the marine and fisheries sector to more than 50 percent in 2015. 

This initiative by MMAF and OJK is very positive, but has two challenges that need to be addressed. First, ensuring government programs to grant more incentives to sustainable and productive fisheries practices. Second, addressing barriers in sustainable fisheries financing, both in the supply side (for example designing the appropriate financing mechanism for fisheries projects, which are usually long term, adopting a financing guideline for sustainable fisheries, establishing a regulatory framework that can properly regulate financing flow), and in the demand side (for example designing a market mechanism that provides incentive to sustainable activities, eliminating negative fisheries subsidy, and others). 

“These two challenges are the background for Transformasi to hold the Roundtable Series with the theme of financing sustainable fisheries industry,” said Sarwono. 

For the first TRS, the discussion will be focused on financing guideline in the fisheries industry by considering the aspects of sustainable fisheries resources and sustainable businesses. With the release of this guideline, it is expected that the risk of financing fisheries industry, which currently is considered high, can be mitigated, thus increasing financing. From the business side, this guideline can promote sustainable business practices, enabling easier access to financing. This is an incentive for businesses to indirectly prevent illegal and unregulated fishing.  

This guideline is expected to be a reference for financing institutions (bansk, non-banks, and collateral insurance companies) as a part of lending criteria for the fisheries industry. 

Policy recommendations that will be produced from each TRS will be brought and presented at the Economist Luncheon as a preparation for the Regional Ocean Forum that will be held in mid-2016. The Regional Ocean Forum 2016 is an international forum that will be attended representatives of Asia Pacific countries to address issues in the marine and fisheries sector. 

The Director General of Competitive Strengthening for Marine and Fisheries Product of the MMAF, Nilanto Perbowo, said that MMAF also wanted to support financing for medium scale fisheries sector to strengthen business competitiveness in the domestic and international market. Strengthening competitiveness will be done by asking medium businesses in the fisheries sector and banking to jointly implement sustainable fisheries management practices. This effort is also followed by maintaining the availability of fisheries resources to ensure business certainty in the fisheries sector. 

MMAF hopes that as financing to fisheries sector grows, fisheries resources that are available will also increase. 

“Through TRS forum, MMAF expects all parties to contribute in developing indicators on sustainable fisheries businesses that deserve to obtain financing from banks,” said Nilanto. 

He added that starting from 2016, Indonesia will face an open fisheries business challenge because MEA will take effect, as well as seafood safety policy, which will be strictly implemented in the world market. This indicator is expected to be a booster for fisheries product competitiveness in the future. (Transformasi)

Addressing IUU Fishing, Transformasi Holds the Transformasi Roundtable Series

Jakarta, Transformasi—The contribution of the fisheries sector to the Gross Domestic Product (GDP) is still relatively small. The Central Statistical Agency (BPS) has recorded that in Quarter 3 of 2015, this sector contributes around 2.46 percent to GDP. This is a paradox if we look at how large the water territory of Indonesia is, reaching 2/3 of the total area of its territory.

Senior Advisor of Center for Public Policy Transformation (Transformasi), Sarwono Kusumaatmadja, Wednesday (18/11), said that the disparity between potential and actual use is caused by three primary issues, namely illegal fishing, unreported fishing, and unregulated fishing, or IUU Fishing.

The Ministry of Marine Affairs and Fisheries (MMAF) predicted that the loss caused by IUU is around Rp. 3,000 trillions. This is not including the loss caused by destroyed sea ecosystem as a result of excessive fishing and sea exploitation that ignores conservation aspects.

 “The loss caused by IUU, and misfired subsidies may not have been fully reflected. Therefore such loss estimation, and the loss of potential benefits, can still increase,” said Sarwono.

Strict measures implemented by the Ministry of Marine Affairs and Fisheries to drive out and destroy foreign ships stealing Indonesian fish are able to drastically reduce fish snatching from Indonesian waters. As a result, stolen fish in Asian market is difficult to obtain. About 60 percent of fisheries processing products in Asia are collapsing. The field study result from the IUU Fishing Task Force Team predicts that with the drastic decline of IUU fishing, Indonesian current fisheries potential is about 7,3 million tons per year, excluding tuna. We can utilize this potential in a sustainable manner.

Unfortunately, such large potential resulting from the positive impact of foreign ship moratorium is yet to be used well. The problem is, from 618,000 fishing boats/ships in Indonesia, 70 percent of them are non-motorized boats and outboard engine boats, which on average are under 3 GT. Ships with such capacity are unable to conduct fishing operations for a full year and have limited areas they can venture into, particularly with the weather in Indonesia changing four times in a year. If ignored, this situation is prone to bring back IUU fishing, especially since the foreign ship moratorium has been lifted on 1st November 2015. Therefore, it is necessary to come up with the right and sustainable policy to resolve this problem, especially a fisheries management policy that is productive and environmentally friendly, in addition to strong law enforcement aspect.

Transformasi Roundtable Series

With regards to that, Transformasi, as a networked think tank that focuses on advocating for good public policy in the marine and fisheries sector, is holding the Transformasi Roundtable Series (TRS) in order to formulate recommendation for the policy to eradicate IUU Fishing in a fast and effective way.

For the first of the series, the TRS will be held on Wednesday, 18th November 2015 in the Esquire Meeting Room, Mandarin Oriental Hotel, Jakarta, starting from 09.00 to finish. The discussion themed “Financing Sustainable Fisheries Industry” will be attended by representatives of policy making institutions in fisheries and financing sector, including: MMAF, Financial Services Authority (OJK), banking, collateral insurance institution, fisheries product processing companies, associations in the fisheries sector, fisheries enterprises, academics in fisheries, and a number of civil society organizations.

Sarwono said that the theme of financing sustainable fisheries industry is selected because the effort of utilizing fisheries resources sustainably requires a significant financing scheme. Engaging private and banking sector in financing will provide a substantial leverage to the contribution of this sector to the economy, and promote the welfare of the fishers.

“Therefore, government funding can be concentrated to protect and recover the health of the sea,” Sarwono continued.

In May 2015, MMAF, with OJK, eight banks and two non-bank financial institutions, launched the “Jangkau, Sinergi, dan Guideline (Jaring)” Program to improve lending to the marine and fisheries sector to more than 50 percent in 2015.

This initiative by MMAF and OJK is very positive, but has two challenges that need to be addressed. First, ensuring government programs to grant more incentives to sustainable and productive fisheries practices. Second, addressing barriers in sustainable fisheries financing, both in the supply side (for example designing the appropriate financing mechanism for fisheries projects, which are usually long term, adopting a financing guideline for sustainable fisheries, establishing a regulatory framework that can properly regulate financing flow), and in the demand side (for example designing a market mechanism that provides incentive to sustainable activities, eliminating negative fisheries subsidy, and others).

“These two challenges are the background for Transformasi to hold the Roundtable Series with the theme of financing sustainable fisheries industry,” said Sarwono.

For the first TRS, the discussion will be focused on financing guideline in the fisheries industry by considering the aspects of sustainable fisheries resources and sustainable businesses. With the release of this guideline, it is expected that the risk of financing fisheries industry, which currently is considered high, can be mitigated, thus increasing financing. From the business side, this guideline can promote sustainable business practices, enabling easier access to financing. This is an incentive for businesses to indirectly prevent illegal and unregulated fishing.  

This guideline is expected to be a reference for financing institutions (bansk, non-banks, and collateral insurance companies) as a part of lending criteria for the fisheries industry.

Policy recommendations that will be produced from each TRS will be brought and presented at the Economist Luncheon as a preparation for the Regional Ocean Forum that will be held in mid-2016. The Regional Ocean Forum 2016 is an international forum that will be attended representatives of Asia Pacific countries to address issues in the marine and fisheries sector.

The Director General of Competitive Strengthening for Marine and Fisheries Product of the MMAF, Nilanto Perbowo, said that MMAF also wanted to support financing for medium scale fisheries sector to strengthen business competitiveness in the domestic and international market. Strengthening competitiveness will be done by asking medium businesses in the fisheries sector and banking to jointly implement sustainable fisheries management practices. This effort is also followed by maintaining the availability of fisheries resources to ensure business certainty in the fisheries sector.

MMAF hopes that as financing to fisheries sector grows, fisheries resources that are available will also increase.

 “Through TRS forum, MMAF expects all parties to contribute in developing indicators on sustainable fisheries businesses that deserve to obtain financing from banks,” said Nilanto.

He added that starting from 2016, Indonesia will face an open fisheries business challenge because MEA will take effect, as well as seafood safety policy, which will be strictly implemented in the world market. This indicator is expected to be a booster for fisheries product competitiveness in the future.