Indonesian Political, Business & Finance News

Fishy deregulation

| Source: JP

Fishy deregulation

We would like to proclaim proudly that our country, with more
than 17,000 islands covering 1.9 million square meters of land,
is the largest archipelagic nation-state in the world.

Our maritime sector, covering three million square meters of
territorial waters and another three million square meters of
exclusive economic zone, holds immense resources. Our seawaters
allow for a sustainable catch of 6.7 million tons a year. The
bitter fact, however, is that the development of our fishery
resources has remained virtually neglected. Our fishing fleet
only includes 357 boats, most of which have a small tonnage of 50
gross tons.

While the newly installed National Maritime Council needs time
to significantly improve marine-resource development, our fish
resources will continue to be plundered by foreign fishing
companies because domestic fishing firms are sinking in a sea of
red tape.

The government had until last July prohibited domestic
companies from importing fishing boats in an overzealous bid to
spur the growth of local shipbuilding. However, because domestic
shipbuilders could not meet the rising demand and the boats they
made were much costlier than imports, the government moved last
July to allow imports of up to 1,000 new or used fishing vessels
within four years.

But fishing companies have not been granted licenses to import
boats as their applications are still being assessed by the
fishery directorate general. In the meantime, foreign fishing
ships continue to poach the country's sea resources at the risk
of being impounded by Navy patrols.

The National Maritime Council's deputy chairman, Soesilo
Soedarman, said last week that 200 foreign fishing boats had been
apprehended for illegally fishing in Indonesia's exclusive
economic zone, which extends 200 nautical miles out to sea, over
the last two months alone. About 270 impounded foreign fishing
boats are currently detained at various ports and the government
has hinted that these boats may be given to fishing cooperatives.

While the fishery directorate general is still struggling with
the delicate question of how to distribute the import quota of
fishing boats among the applicants -- several of them are
politically well-connected -- the agriculture minister issued
another ruling which might further delay the procurement of badly
needed foreign fishing boats.

The new ruling, announced last week, imposes so many
conditions on companies wanting to lease foreign fishing vessels
that it would take more than one year to process all the
requirements. The regulation stipulates that Indonesian fishing
companies intending to lease foreign-flag fishing boats for
operation in the country's exclusive economic zone must have a
foreign fishing-ship operating license which is effective for
three years. The leased foreign fishing boats must also have
fishing licenses. The fishing companies must own at least two
Indonesian fishing boats of a minimum 30 gross ton capacity, an
ice factory with a minimum daily capacity of 10 tons, a fish
cannery, a fishing-boat dockyard and a 100-ton capacity cold
storage. On top of this, a fishing company is only allowed to
lease one foreign fishing ship for every three Indonesian boats
it owns or operates.

As if these requirements are not frustrating enough for
fishing companies, the ruling imposes other restrictive
provisions regarding fishing areas, including the types of
fishing equipment that can be used, ship capacity, crews,
marketing and fishing royalties.

We realize it is imperative to protect our marine resources
from reckless foreign exploitation and from environmental damage.
We are also fully aware that fishing operations cannot be
separated from the interests of national security and defense.
But should we allow these interests to force us into issuing
regulations that prevent us from diversifying our food sources
and optimizing our marine resources for the greatest benefit of
the people?

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