Indonesian Political, Business & Finance News

KKP Confident Shrimp Pond Project Will Boost East Sumba's Economy

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

The Ministry of Marine Affairs and Fisheries (KKP) is optimistic that the integrated shrimp pond project in Waingapu, East Sumba Regency, Nusa Tenggara Timur, will improve the welfare of the surrounding population. “It has the potential to lift 55% of the poor population out of structural poverty,” said the Head of the Extension and Human Resources Development Agency of KKP, I Nyoman Radiarta, during a press conference in Jakarta on Wednesday, 1 April 2026.

That statement was made by Nyoman while presenting the initial study results on the economic and social impacts of the integrated shrimp pond project. The project requires an investment of Rp 7.2 trillion, funded by foreign loans.

This pond is being built on a 2,150-hectare plot consisting of eight zones. The majority of the land will be used to establish shrimp aquaculture areas on 723 hectares of soil. The shrimp aquaculture area consists of 12 clusters with a total of 128 maintenance ponds.

Shrimp production is estimated to reach 40 tons per hectare per year. Thus, in one year, the total shrimp production at the Waingapu pond could reach 52,000 tons. The shrimp is planned to be exported to countries with high consumption needs, such as the United States and China. However, it does not rule out the possibility that shrimp production will also meet domestic consumption.

Nyoman estimates that this three-year construction phase will increase regional gross domestic product (PDRB) growth by 34.7-40.7% per year temporarily. Then, there is potential for absorbing 8,820 workers, of which 1,889 are local construction workers.

Once operational, Nyoman believes the shrimp pond project can increase East Sumba’s PDRB to Rp 10.5 trillion from the previous Rp 7.8 trillion. He also noted that the economic value of shrimp could reach Rp 3.38 trillion per year. Furthermore, the export value of shrimp from the pond is estimated at US$285 million.

Meanwhile, the wage circulation is estimated to reach Rp 2,260 billion per year at the local level due to the recruitment of local workers. Thus, the regional minimum wage (UMR) amount is predicted to reach Rp 260 billion per year.

View JSON | Print