Fishing sector 'promising but underexplored'

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)