Government to double fish export by 2006

Zakki P. Hakim, The Jakarta Post, Jakarta

The Ministry of Maritime Affairs and Fisheries has announced a US$5 billion revenue target from fish product exports by 2006, or more than twice last year's estimated revenue of $2.14 billion.

Maritime affairs and fisheries minister Freddy Numberi was optimistic it could achieve the target by expanding to new markets, reducing export barriers and developing marine ornamental fish as a top export commodity.

Freddy said on Wednesday the fish export sector may grow rapidly, as local fish production and average price kept improving.

"Last year's exports showed a solid sign of improvement, as it had increased from 696,290 tons of fish exports worth $2 billion in 2003," he said in an opening speech at the seminar, "Evaluating maritime affairs and fisheries development in 2004 and activity plans for 2005".

Indonesia produced 6.23 million tons of export fish last year, or an increase of almost 6 percent from 2003.

Ten years ago, Indonesia ranked seventh among the world's biggest fish producers after China, Peru, Japan, Chile and India, according to the Food and Agriculture Organization (FAO).

In 2004, the country ranked fifth, Freddy said.

Meanwhile, the ministry's director general for institutional and marketing capacity building Sumpeno Putro said he expected shrimp, the main fisheries export commodity, would contribute toward achieving the high target.

Sumpeno said 2004 shrimp exports reached an estimated $1 million, an increase of nearly 20 percent from $841,000 the previous year. "We expect shrimp exports to increase to at least $1.5 million this year."

He said the ministry would encourage the private sector to engage in added-value activities to raise shrimp prices, so that its export value would increase even if production growth stayed relatively flat.

The absence of fresh investment was responsible for the lack of innovation in added-value activities in the industry, he said. "We believe such an investment will come this year."

Sumpeno said Thailand made a big fortune from shrimp exports because it was able to provide a variety of processed shrimp, while Indonesia provided only headless shrimp.