Fishing sector 'promising but underexplored'
JAKARTA (JP): The prospect of the fishing industry was still promising because it was underexplored and underutilized, since national companies could only harvest half of its annual production potential, President Soeharto said yesterday.
The President cited a shortage of skilled human resources and working capital, a poor market network and limited infrastructure as the main factors behind the poor performance.
"We have a lucrative opportunity to boost our exports as world fish production is slowing down, while market demand is rising in Europe and the U.S., and the Asian market is rapidly growing," Soeharto said when opening the Association of Indonesian Fishing Companies (Gappindo) congress at the State Palace.
The President said the government would continue to deregulate the industry to boost production.
The country's production potential is at least 6.7 million tons, and only half of that can be harvested.
"We must realize that this industry determines the fate of many people who earn money from this sector," Soeharto said.
Minister of Agriculture Sjarifudin Baharsjah said fisheries' annual production grew by 5.5 percent over the last four years.
"Per capita consumption has also increased from 17.6 kg to 20.2 kg annually over the same period," Sjarifudin said.
The minister said the European Union Commission had approved 232 Indonesian companies in October to export their products to Europe.
"In 1995, only 155 companies were accredited," Sjarifudin said.
The association's chairman, Sudwikatmono, said fishery exports were US$2.03 billion last year compared to only $83.3 million in 1975.
"We are the eighth largest fish exporter in the world. Our production in 1996 was 4.4 million tons," Sudwikatmono said.
In 1995, Indonesia became the world's fourth largest tuna exporter, most of which went to Japan, he said.
After waiting for years, the government allowed private companies last year to import used fishing vessels. Ships that can be imported include long-liners and purse seiners weighing between 100 and 300 tons, which are considered technically and economically feasible.
For this year alone, the government has approved the importation of 320 vessels.
Sudwikatmono said PT Biak Mina Jaya, a privately owned company, was developing a tuna-canning industry in Biak, Irian Jaya. The company expected to produce 300,000 tons of tuna and skipjack per year.
The one-day conference was attended by 163 participants from 27 provinces. Incumbent chairman Sudwikatmono was widely tipped to be reelected to lead the association for another five-year term. (prb)