Indonesian Political, Business & Finance News

Zulhas Targets Fishermen's Welfare Boost Within Two Years Using 'Red and White Fishermen's Village' Scheme

| Source: CNBC Translated from Indonesian | Economy
Zulhas Targets Fishermen's Welfare Boost Within Two Years Using 'Red and White Fishermen's Village' Scheme
Image: CNBC

Coordinating Minister for Food Zulkifli Hasan (Zulhas) is targeting an increase in the Fishermen’s Exchange Rate (NTN) to surpass 120 within the next two years. The target is believed to be achievable through the construction of the ‘Red and White Fishermen’s Village’ (KNMP), which will be equipped with various supporting facilities to strengthen the bargaining position of fishermen. Zulhas noted that the current NTN stands at 103, far below the Farmers’ Exchange Rate (NTP), which has reached 127. He stated that the existence of the Red and White Fishermen’s Village will break fishermen’s dependence on middlemen, thereby increasing their income. “Imagine, our fishermen are hardworking. They go to sea and catch fish. They get a lot of fish, but once they reach land, they have no bargaining power. The middlemen play games. Whatever price the middlemen demand, they sell. If they don’t sell, the fish rots,” Zulhas said after a Limited Coordination Meeting at the Ministry of Marine Affairs and Fisheries headquarters in Jakarta. “Hence, the noble idea from the President through the Minister of Marine Affairs and Fisheries is to build Fishermen’s Villages. There, auction halls, cold storage, ice factories will be prepared, and they will be connected to other markets, as well as boat moorings. So, the infrastructure is being prepared,” he continued. He explained that with cold storage, fishermen are no longer forced to sell their catch when prices are suppressed by middlemen. Furthermore, the Red and White Village Cooperatives will also act as a buyer of fish if the market has not absorbed the supply. “So, if he brings in a lot of fish and the middlemen offer a very low price, he can choose not to sell and store it in the cold storage first. If it still doesn’t sell, the cooperative will buy it. There is also cooperation with the Nutrition Fulfilment Service Units (SPPG),” he explained. Zulhas added that the current NTN of 103 is far below the NTP, which has soared to 127 thanks to the rice self-sufficiency programme. Therefore, the government is now focusing in parallel on increasing the NTN through the Red and White Fishermen’s Village programme. “The Minister of Marine Affairs and Fisheries’ presentation showed that in the Red and White Fishermen’s Villages that have been built and are operational, productivity has increased by up to 30%. Economic growth ranges between 5.4% and 16%. So, within two years, if we can successfully implement this programme, the fishermen’s exchange rate can go from 103 to over 120,” he stated. The government is targeting the construction of 1,369 Red and White Fishermen’s Villages this year, with 65 already completed.

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