KNTI urges government to pursue subsidies for fishermen in WTO agreement

Jakarta, Indonesia — The Indonesian Traditional Fishermen’s Union (KNTI) has called on the government to remain consistent in advocating subsidies for small-scale fishermen in negotiations on the World Trade Organization (WTO) Agreement on Fisheries Subsidies.

KNTI’s General Chairman Dani Setiawan stressed that the constitutional mandate and national laws clearly enshrine protection for traditional fishermen, so the government should not bow to pressure from developed countries.

‘We believe fisheries subsidies are an obligation of the Indonesian government as mandated by Article 33 of the 1945 Constitution and Law Number 7 of 2016,’ Dani said in a virtual discussion held in Jakarta on Thursday.

‘Thus, I think negotiations on fisheries subsidies within the WTO should be directed to protecting the rights of small and traditional Indonesian fishermen,’ he added.

The WTO Ministerial Conference of the 12th in Geneva in June 2022 agreed to the WTO Agreement on Fisheries Subsidies, which will officially come into force on 15 September 2025 after ratification by 116 countries.

The first phase of the agreement bans subsidies to vessels or operators involved in illegal, unreported and unregulated (IUU) fishing.

The second phase, which is still under negotiation, expands bans on subsidies that contribute to overcapacity and the overexploited state of fisheries.

Subsidies prohibited include construction or modernisation of vessels, purchase of engines and equipment, fuel costs, ice, bait, as well as income and price supports.

Subsidies for personnel costs, insurance, or operating losses are also included in the prohibited category.

Nevertheless, there are special provisions for developing countries. They are still allowed to provide subsidies for fishing activities in the Exclusive Economic Zone (EEZ) or areas under the jurisdiction of regional fisheries management organisations during a transition period of up to seven years from the agreement’s entry into force, i.e., until 2030.

However, Dani says the rules could still disadvantage Indonesian small-scale fishermen.

He also highlighted the imbalance between developed and developing countries, because fisheries subsidies in developed countries are far larger.

‘According to OECD estimates of subsidies, Indonesia provides only about $92 per fisherman, while the United States reaches $4,956 and Canada $31,800 per fisherman. That is very imbalanced,’ he said.

Dani emphasised that fisheries subsidies are an important instrument to sustain livelihoods and national fisheries food security.

‘WTO negotiations must be aimed at protecting the rights of small and traditional Indonesian fishermen … This is a concrete test for the government to prove its commitment to Article 33 and Law Number 7 of 2016,’ Dani said.

In the same session, Syahril Abd Raup, Director for Fisheries Resources Management at the Ministry of Marine Affairs and Fisheries, expressed support for subsidies such as fuel, fishing gear, and vessels, which are still very much needed by the majority of fishermen in Indonesia.

He emphasised that Indonesia will push for special and differential treatment (S&DT) to protect small-scale fishermen and domestic policy space in the ratification process of the WTO agreement on fisheries subsidies.