Financial turmoil hits fishing vessel imports

Financial turmoil hits fishing vessel imports

JAKARTA (JP): Indonesian fishing companies can import only 230
used fishing vessels this year, less than the 320 vessels allowed
by the government, according to the Association of Indonesian
Fishing Companies (Gappindo).

Sudwikatmono, the association's chairman, said yesterday that
fishing companies were facing difficulties in paying for imported
vessels due to the current monetary crisis.

"Fishing companies are also facing difficulties in getting
loans from banks, because the business is considered a risky
one," he said after inaugurating Gappindo's new board.

Sudwikatmono said that although fishing companies could only
import 230 vessels, he expected the addition to the existing
fleet would increase fish catches next year.

The country's fishing industry, he said, still lacked modern
equipment, especially for catching migratory fish such as tuna
and skipjack.

"We need a more sophisticated fleet to increase the national
catch," he said.

Indonesia hauled in over 4.4 million tons of fish last year, a
3.7 percent increase from 4.2 million tons last year.

The figure is expected to increase 5.9 percent to 4.7 million
tons this year.

The government said in July last year that it aimed to
increase the national catch by 5 percent a year.

To reach this target, the government eased the restriction on
the import of used fishing vessels early this year. Through 1999,
fishing companies would be allowed to import 960 long-liners,
purse-seiners and fishnets at a rate of 320 vessels a year.

In Ministerial Decree No. 508/1996, issued by the agriculture
minister in July last year, the government officially allowed
Indonesian fishing companies to import, albeit on a limited
basis, steel long-liners weighing 100 gross tons to 350 gross
tons (GT), tuna and skipjack purse-seiners of 100 GT to 800 GT,
fish and shrimp trawlers and squid-jiggers of 100 GT and 300 GT,
and fish-lading vessels of over 100 GT.

According to the decree, companies may import vessels after
obtaining a fishing business license and after guaranteeing that
the ships would be used solely by the company while operating
within the country's exclusive economic zones (EEZ) and
territorial waters within 200 miles of Indonesia's coasts.

The decree also states that companies may import such vessels
only if domestic production does not meet demand.

The importation of used fishing vessels is only allowed for
vessels that have been in service for no more than 10 years. The
vessel also must receive prior approval from the Directorate
General of Fisheries.

Before the decree was issued, deep-sea fishing in territorial
waters and EEZ -- mostly in the eastern part of Indonesia -- was
carried out by large, modern fleets flying foreign flags
chartered by Indonesian companies.

The system had led to illegal fishing and exports.

The government expects last year's number of 233 Indonesian
fishing boats to increase to around 1,000 by the year 2000.

Director General of Fisheries F.X. Murdjijo said that his
office had received proposals from fishing companies to import at
least 900 used fishing vessels next year.

But he declined to give the number of the companies that
applied.

Meanwhile, Sudwikatmono said that Indonesia's export value of
fish products was not expected to increase because of the current
economic crisis.

"We just expect that this year's export value will be equal to
last year's," he said.

According to the association's data, Indonesia's export of
fish products reached over US$2.03 billion last year, a 10.5
percent increase from $1.81 billion in 1995.

The country exports most of its fish products to the United
States, Japan, Taiwan, Singapore and European countries. (gis)