Fishery sector aims at US$2b export target

Fishery sector aims at US$2b export target

BOGOR, West Java (JP): The government is aiming at an 11
percent growth in the country's fishery exports to US$2 billion
this year from last year's $1.8 billion in spite of numerous
problems currently faced by the sector.

Director General of Fisheries F.X. Murdjijo said on Saturday
that it is important to increase productivity and exports because
fisheries are expected to become the agricultural sector's new
source of growth for the current long-term development plan which
started in 1994.

"The expectation is quite understandable since the fishery
sector is very potential, considering that we have used only 40
percent of the aquatic resources we own," he said when opening a
one-day seminar on fisheries.

The seminar was organized jointly by the Bogor Agricultural
University's School of Fisheries, the Directorate General of
Fisheries and the Indonesian Association of Fishery School
Graduates.

Murdjijo said that in the 1993 to 1995 period, the country's
fishery production grew by an average of 5.65 percent a year from
3.7 million tons to 4.2 million tons. Most of this, or about 77
percent, came from marine fisheries, particularly shrimp.

Meanwhile, the fishery exports during that period rose by 4.18
percent in volume to 574,234 tons in 1995 and by 9.68 percent in
value to $1.8 billion.

But Murdjijo acknowledged that the sector would have to solve
many problems before it could sufficiently meet the government's
targets.

"The sector is now facing the risk of decreasing resources and
environmental qualities...and unequal distribution of resource
exploitation," Murdjijo said.

Apart from that, there was also a severe shortage of sound
fishing vessels, as non-motorized fishing boats owned by poor
fishermen made up most of the country's fleets. Such boats were
unable to make long trips, thus fishing was concentrated mostly
near the shore.

Manpower

He also considered low-quality manpower as a serious problem
faced by the sector.

"About 64 percent of our fishermen are primary school dropouts
and only 26.2 percent have primary school certificates... This,
in turn, causes problems in training and education," he said.

Murdjijo said the long line of problems, and the natural risks
affecting fisheries, lead to the sector's poor performance and,
in turn, caused banks to avoid giving loans to businesses in that
sector.

I Nengah Suanda, an executive of Bank Rakyat Indonesia, said
Saturday that 50 percent to 60 percent of the bank's loans to the
fishery sector during the 1990 to 1995 period have gone sour.

"For shrimp ponds alone, 75 percent of the bank's Rp 60-
billion loans given in 1990 to 1996 have gone sour," he said.

According to Bank Indonesia (the central bank), only 11.7
percent, or less than Rp 10 trillion, of the total loans given to
the agricultural sector during the period between 1991 and
February 1996, were allocated to fisheries.

In comparison, plantations were allocated 69 percent of the
total loans.

Bank Rakyat said in its paper at yesterday's seminar that the
low portion of loans given to fisheries and the agricultural
sector in general, was caused mainly by the high risks incurred
by the products' sensitivity to environmental changes and price
fluctuations.

"The demand for agricultural products is inelastic and the
sector's added value is small compared to other sectors," the
paper read.

The bank said that fisheries, shrimp pond businesses in
particular, showed low rates of loan repayment. Some businesses
failed because of errors in cultivation and management
techniques, lack of expertise and unfavorable and unanticipated
environmental conditions. (pwn)