Mon, 19 Sep 2005

RI wants more from overseas fishing boats

Wahyoe Boediwardhana, The Jakarta Post, Denpasar

The government plans to apply a new joint investment scheme to countries whose fishing firms are licensed to operate in the Indonesian Economic Exclusive Zone to set up processing and supporting firms in the country.

The plan should benefit Indonesia more, Minister of Maritime Affairs and Fisheries Fredy Numberi said on Saturday, with fishing firms from Thailand, the Philippines and China likely to be the first targets of the planned policy.

At present, Indonesia benefits little from issuing such licenses as most overseas fishing firms ship their haul directly back home, Fredy said on the sidelines of the 2nd APEC Ocean- Related Ministerial Meeting here in Bali.

"Aside from that requirement, they will have to also unload a significant amount of their fish at Indonesian seaports," Fredy said, hinting that the amount could reach up to 70 percent.

He refused to specify the timing of the new policy, which would be in the form of bilateral agreements on a government-to- government basis, but said the deals would be binding for companies in those respective countries.

Hundreds of foreign-flagged fishing boats have been taking advantage of the vast Indonesian waters, bringing home yields worth billions of dollars annually.

"We want to change that. We want to get a fair share (of the proceeds). It must benefit Indonesia," he added.

Building factories will not only mean new investment, but new job opportunities.

It is not clear whether the plan, which will have no impact on the holders of existing licenses, is in line with regulations for international waters.

In the case of the Philippines, Indonesia has had "encouraging" discussions over the issue with officials from the country's department of agriculture, according to Fredy.

"Four fishing firms have already shown interest in investing in and building fish-processing factories. There is one in Serang, for instance, which is worth about US$170 million, and another in Bitung worth $200 million in investment", Fredy said.

He did not mention the names of the companies.

According to Fredy, the three-year licenses for some 250 Philippine-based fishing firms to operate in Indonesian waters -- which were granted to them in November 2002 -- will expire by Dec. 2.

The plan will also be applied to fishing boats from China and Thailand, the licenses of which expire in 2006. The licensed fishing boats from the two countries total 476.

"Both are very serious about following up this plan. Thailand in particular, is interested in building the processing facilities in Benjina (Aru Island), Saumlaki (Maluku Sea), and the Natuna Sea," he said.