Fisheries industry up for $1b in investment<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Hoping to take advantage of Indonesia's vast, largely untapped
\nmaritime resources, investors from China, Thailand and the
\nPhilippines are currently filing with the government investment
\nproposals worth a total of some US$1 billion.<\/p>\n
The investment, expected to start flowing early next year,
\nwill be spent mostly in eastern Indonesia, including Maluku and
\nPapua, Minister of Fisheries and Maritime Affairs Freddy Numberi
\ntold The Jakarta Post.<\/p>\n
\"The investors are currently filing their proposals with our
\nministry, while at the same time seeking land to set up their
\nfishing processing plants. Several of them will operate in Ambon,
\nMerauke and Timika,\" said Freddy.<\/p>\n
He said five investors from China were planning to invest a
\ntotal of $500 million, while two investors from the Philippine
\nand three from Thailand were likely to invest a total of $500
\nmillion.<\/p>\n
With 5.8 million square kilometers of ocean, Indonesia has the
\npotential to yield 6.4 million tons of fish per year. The United
\nNation's Food and Agriculture Organization has set catch limits
\nat 80 percent of the total potential yield of the area, or some
\n5.12 million tons per year.<\/p>\n
However, the value of Indonesia's fishery industry remains low
\nat about Rp 46.6 trillion (US$4.52 billion), or 2.21 percent of
\ngross domestic product. According to some local fisheries, this
\nis due in part to a lack of support from the government.<\/p>\n
The situation is also exacerbated by the practice of illegal,
\nunregulated and unreported fishing, which reportedly cause the
\ncountry losses of about $1.9 billion per year in lost revenue
\nfrom legal fishing.<\/p>\n
As part of the fight against illegal fishing, Freddy said his
\nministry had revoked the licenses of 237 foreign fishing vessels
\nbetween October and August for misusing their licenses, as well
\nas the licenses of several local vessels for not having proper
\ncertification.<\/p>\n
\"We have revoked the licenses of several fishing vessels owned
\nby foreign and local companies. Most of the vessels are owned by
\nChinese companies. There are also some used vessels from Taiwan
\nthat have been seized for poaching,\" he said.<\/p>\n
At present, 705 registered foreign fishing vessels are
\noperating in Indonesian waters, with some 302 vessels from
\nThailand, 286 from China and 117 from the Philippines.<\/p>\n
The ministry announced earlier this year that it would not
\nissue new licenses to foreign vessels to fish in Indonesian
\nwaters, to help reduce illegal fishing as well as to provide more
\nopportunities for local fishermen.<\/p>\n
Starting in 2007, the ministry expects there to be no more
\nfishing vessels from the Philippines, Thailand and China to be
\noperating in the country, after their current contracts expire.<\/p>\n
A bilateral agreement with the Philippines on fishing in
\nIndonesian waters will expire next December, with Thailand in
\nSeptember next year and with China July next year.<\/p>\n
However, vessels from these countries can continue to operate
\nin Indonesia under a joint investment or joint operation scheme,
\nwhich requires them to establish processing and supporting plants
\nin Indonesia, and sell the majority of their catch in the
\ndomestic market.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fisheries-industry-up-for-1b-in-investment-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}