Mainstreaming Fishermen's Welfare
The essence of the restoration movement is to build civilisation and strengthen human quality. Indonesia is a maritime country with the second-longest coastline in the world. The sea provides the main source of animal protein for hundreds of millions of people and is one of the pillars of food security. The fisheries sector’s contribution to gross domestic product may not be large, but its role in employment and food provision is highly strategic. Behind these facts, the welfare of fishermen remains a recurring problem.
Data from the Ministry of Marine Affairs and Fisheries shows the potential of more than 1.3 million fishermen. Fisheries production continues to grow. Throughout 2025, production volume reached 26.25 million tonnes, an increase of 11.48 percent compared to the previous year’s realisation. However, welfare figures have not moved as fast as production volume. The Fishermen’s Exchange Rate (NTN) for January–June 2026 averaged 107.41 and moved fluctuatively. This movement indicates that improvements in fishermen’s welfare have not been strong. The rise in prices received by fishermen has not been able to deliver a significant increase in purchasing power relative to the costs they must bear.
Poverty in coastal areas is relatively higher. Statistics Indonesia once recorded that the extreme poverty rate in coastal areas reached 4.19 percent, slightly above the national figure. Traditional fishermen’s organisations even state that this group contributes a significant portion to the national poverty rate. This fact shows a gap between the potential of resources and the results enjoyed by those who depend directly on the sea.
Why has welfare not kept pace with potential? First, the market structure is unequal. Most small-scale fishermen still depend on middlemen. Information asymmetry and weak bargaining power mean prices at the fisherman level are far lower than the prices paid by end consumers. Second, business risks are high. Extreme weather, fluctuations in fish stocks, and workplace accidents are part of daily life. Insurance protection coverage remains limited even though premium assistance programmes continue to be rolled out.
Third, access to capital and technology is limited. Small fleets with simple engines still dominate. Fuel costs are a major burden despite the existence of subsidy schemes. Fourth, the value chain is short. Without adequate cold storage and processing facilities, much of the catch loses value or is sold in raw form with thin margins.
Mainstreaming fishermen’s welfare means making this issue an integral part of national economic policy. Several steps can be considered simultaneously. First, strengthen collective institutions. The ‘Koperasi Nelayan Merah Putih’ or professionally managed joint business groups can improve bargaining power, manage shared cold chains, and open direct market access. The government can facilitate digital marketing platforms so fishermen can connect with modern buyers, including processing industries and retail. Experience in several regions shows that when fishermen have strong institutions, the margins they receive increase and dependence on middlemen decreases.
Second, reform operational support. Fuel subsidies need to be complemented with efficiency incentives and gradual fleet modernisation. The coverage of existing fishermen’s insurance programmes needs to be expanded and claim procedures simplified. Affordable premiums and fast claims will reduce the vulnerability of fishermen’s households to shocks. Training in navigation skills, catch handling, and simple business management is also important so that productivity increases without adding pressure on fish stocks.
Third, invest in public infrastructure in coastal areas. Well-functioning fishing ports, cold storage, and small-scale processing facilities are public goods that the market struggles to provide alone. This infrastructure reduces post-harvest losses and opens up value-added opportunities. Development should be prioritised in production centres dense with small-scale fishermen so the impact is evenly distributed.
Fourth, integrate with macro policies. A special people’s business credit scheme for fishermen with more flexible requirements can overcome capital constraints. Responsible sustainable resource management, conservation areas, and law enforcement against illegal fishing will safeguard long-term stocks. Without healthy stocks, all welfare improvement efforts will only be temporary. Accurate and updated data on the number of fishermen, fleets, and catches also form the foundation for targeted policies.
Experience from other countries shows that fishermen’s welfare improves when policies focus on the complete value chain, from catching to marketing, accompanied by good resource governance. High production without welfare only creates new inequalities in coastal areas. Conversely, improved welfare will strengthen the motivation to preserve resources. Ultimately, the success of the blue economy is measured not only by catch volumes or foreign exchange, but also by whether fishermen and their families live better. Mainstreaming fishermen’s welfare is an investment in food security, social justice, and the sustainability of marine resources. When fishermen prosper, national food security becomes more robust.