Ornamental fish business booming

Debbie A. Lubis, The Jakarta Post, Jakarta

As most businesses suffer hardship following the economic crisis which began in 1997, the ornamental fish business enjoys an ever-increasing growth in demand, especially from the export markets.

Surprisingly, this business is only popular in Jakarta and Bali and a few other coastal areas in Java.

Not many people realize its potential, although the industry reaped some US$11.3 million in foreign exchange export revenue last year alone.

This year, export revenue is expected to increase due to continuing demand from regular buyers, especially in Japan, the US and Europe.

Most interestingly, those buyers are especially seeking ornamental fish from Indonesian waters, according to the chairman of the Indonesian Coral, Shell and Ornamental Fish Association (AKKII), Suyatno.

However, despite the demand, exporters here face unnecessary impediments to supplying overseas clients.

Unlike their competitors in neighboring countries, Indonesian ornamental fish exporters are still facing serious problems and difficulties in packaging the fish and marketing techniques, but most of all in bureaucratic hurdles with certain government departments.

Deddy Mulyadi, general manager of Aqua Marindo, said that one of the most costly elements, among other things, for businesspeople here was getting the export license from the Ministry of Maritime Affairs and Fisheries.

"You may be arbitrarily charged anywhere from Rp 5 million to Rp 10 million to get an export license. It all depends on the officer's mood, there doesn't seem to be a set criteria," Deddy said.

Indonesia's most sought-after freshwater ornamental fish include the Red Dragon (Sclerophages Formosus) from Kalimantan, the Clown Loach (Botia Maracantha, Botia Hymenophysa) from Jambi, the Celebes Rainbow Fish (Telmatherina Ladigesi) from Sulawesi and the (Sclerophages Jardini) from Papua, Suyatno said.

In fact, Indonesia has more than 100 species of freshwater ornamental fish and more than 200 species of marine ornamental fish.

The buyers usually select the ornamental fish based on their rarity, fascinating eyes, size, extraordinary length, tail shape and enchanting colors.

For some people who believe that such fish may bring wealth, fortune, prestige and happiness, they will dare to pay high prices.

For example, some popular Koi fish sell for up to Rp 5 million (US$500), and a Lou Han Golden (Cichlasoma) can fetch up to Rp 400 million (US$40,000).

There have been many success stories from businessmen in this sector, especially the exporters.

Masman is one of them. He has been in the business since 1978, starting with an initial budget of Rp 25 million (about US$12,000 at that time).

"Now I can earn $150,000 per month from exporting marine ornamental fish," he said.

He said that he bought most of his fish from farmers in coastal areas in some regions like Pulau Seribu in Jakarta, Pangandaran in West Java, Lampung, Jepara in Central Java, Padang in West Sumatra, Manado in North Sulawesi, Makassar in South Sulawesi and Biak in Papua.

He exports approximately 15 tons of marine ornamental fish every month to Europe, the US, Japan, Singapore and Taiwan.

"Most buyers from European countries prefer small marine ornamental fish like the Clown Fish while Asian buyers like the big ones," he said.

Ferry, another exporter, said that every month his company exported 500 cases of freshwater ornamental fish mainly to Europe, Japan, United States, Singapore and Australia.

He said that most European customers mostly bought Betta Imbellis from his company while Americans purchased Lou Han fish.

He said his company had been breeding the freshwater ornamental fish for several years in some of its breeding farms in Jakarta, Bogor and Blitar in East Java as well as Bali.

In addition to the success stories, there are surely some people who have failed in the business. Those people are usually beginners, who entered the business through breeding.

As for the first-time exporters, the competition is more from foreign exporters rather than from domestic exporters here.

Currently, Indonesia supplies 9 percent of European ornamental fish demand and 6 percent of demand in the United States.

Indonesia's major competitors in the ornamental fish business are Singapore, Sri Lanka, Thailand, Brazil, Hong Kong, Malaysia and the Philippines.