Government to impose new levy on fishing permits

Government to impose new levy on fishing permits

JAKARTA (JP): The government will impose a new levy on the
application of fishing permits in a bid to increase state revenue
from the fishing sector, a senior fisheries official said here on
Wednesday.

Djoko Sugiarto, the director of fisheries infrastructure at
the Ministry of Maritime Affairs and Fisheries, said that the
regulation on the levy would be implemented next year.

The levy will be imposed on applications for fishing permits
issued by the Directorate General of Fisheries for trawlers with
a capacity of more than 30 gross tons, Djoko said.

"The amount of the levy would depend on the size, tonnage, and
the kind of equipment the trawlers use", he told journalists on
the sidelines of a fisheries workshop currently being held by the
ministry in conjunction with the Australian Center for
International Agricultural Research (ACIAR) and Agriculture,
Fisheries, and Forests Australia (AFFA).

He said he was optimistic that with the new levy, the
government's target to raise Rp 291.7 billion ($34.3 million)
from the fishing sector next year could be achieved.

Bambang Suboko, the executive director of the Indonesian
Fisheries Federation (Gappindo), said that the government's plan
to impose the levy would hurt the ailing fishing industry.

"The fishing industry has been stagnant during the last two
years due to unfavorable macro economics, and worsening communal
conflicts in the main fishing areas of Maluku," he said.

The 46 percent drop in frozen tuna exports, a major export
commodity, to Japan in 1999 from 38,000 metric tones in 1998
clearly indicated the setback to the country's fishing industry,
Bambang said.

"If you look at the exports from January to August all sectors
are improving except for agriculture, which includes fisheries,
which dropped by 30 percent," he said.

He said that in the current climate, the government should
provide incentives rather than add further difficulties, in order
to help those in the fishing industry survive the harsh
situation.

"This is not the time to tax more from the industry, at a time
when it is stuck," he said, adding that despite this they would
still go along with the government's decision.

Indonesia exports marine products to Japan, the United States,
the European Union, and countries in East Asia.

Bambang said the government should strive for recovery by
helping the revival of the industry.

In an effort to achieve this, the government should clarify
and ease the issuance of fishing permits, and suspend decrees for
more taxes and levies, he said.

Cooperation

The two-day workshop will involve discussion on proposals for
possible cooperation in the fishing sector made during the
meeting of Indonesian fisheries officials and their Australian
counterparts in Bali in March.

The issues include research collaboration on shark stocks and
tuna species shared between Indonesia and Australia, assistance
in institutional capacity building and assistance in the
development of marine culture in eastern Indonesia, including the
establishment of pilot sites.

Djoko said Indonesia would choose three projects to prioritize
in its future cooperation with neighboring Australia, such as the
development of the seaweed industry, grouper marine culture and
shrimp health management.

"These are in line with the ministry's own policy which is to
support income from exports," he said. (10)