2014.06.29 IN Jakarta - Value Chain Analysis of Marine Fish Aquaculture in Indonesia PDF

2014
Value Chain Analysis of

Marine Fish Aquaculture in Indonesia
Business Opportunities for Norwegian Companies
Prepared for:
Prepared by:
June 2014
Table of Contents
1. Research methodology and objectives ......................................................................... 11

2. Summary and analytical outcomes ................................................................................ 12
3. General overview of Indonesian fisheries and aquaculture ......................................... 15
3.1. Current condition of Indonesian fishery sector .......................................................... 15
3.2. Structure of fisheries activities in Indonesia ................................................................ 18
3.3. Indonesian aquaculture .............................................................................................. 19
3.3.1 General overview of Indonesian aquaculture industry ................................................. 19
3.3.2 Aquaculture methodes ................................................................................................... 22
3.3.3 Fish species for marine aquaculture in Indonesia .......................................................... 24
3.3.4 Benefits,values and challenges for each aquaculture fish species .............................. 32
3.3.5 New species being developed ....................................................................................... 33
3.3.6 Domestic and export markets for each species ............................................................ 36
3.4 “Minapolitan” system as an unique approach to aquaculture................................. 39

3.5 The marine climate ....................................................................................................... 40
3.5.1 Pollution ............................................................................................................................ 43
3.6 Workforce availability ................................................................................................... 44

4. Aquaculture hotspot mapping ........................................................................................ 45
4.1 Province of Aceh ........................................................................................................... 47
4.2 Province of Riau Archipelago....................................................................................... 50
4.3 Province of Lampung .................................................................................................... 52
4.4 Province of East Java (Java Timur).............................................................................. 55
4.5 Province of Bali .............................................................................................................. 58
4.6 Province of West Nusa Tenggara (Nusa Tenggara Barat) .......................................... 60
4.7 Province of South Sulawesi (Sulawesi Selatan) ........................................................... 63
4.8 Province of Maluku........................................................................................................ 65
4.9 Province of West Papua (Papua Barat) ....................................................................... 69
5. Value chain analysis ........................................................................................................ 72
5.1. Value chain commodity schemes.............................................................................. 72
5.1.1 Processed commodities .................................................................................................. 73
5.1.2 Live commodities ............................................................................................................. 74
INDONESIA AQUACULTURE 1
5.2 Value chain business segments ................................................................................... 75
5.2.1 Hatcheries......................................................................................................................... 75
5.2.2 Nursery/aquafarming....................................................................................................... 79
5.2.3 Vaccines .......................................................................................................................... 83
5.2.4 Fish feed............................................................................................................................ 85
5.2.5 Processing......................................................................................................................... 88
5.2.6 Logistics............................................................................................................................. 91
5.2.7 Equipment ........................................................................................................................ 92
6. Regulatory, policy and investment environment .......................................................... 95

6.1 Top-level aquaculture investors and other stakeholders........................................... 95
6.2 Laws, regulatory framework and standards ................................................................ 96
6.2.1 Property and water rights ................................................................................................ 96
6.2.2 Infrastructure development............................................................................................. 97
6.2.3 Legal context .................................................................................................................. 97
6.2.4 Research, technology development and extension ..................................................... 98
6.2.5 Promotion ......................................................................................................................... 98
6.2.6 Other policy frameworks ................................................................................................. 99
6.2.7 Taxation system for Indonesian aquaculture ............................................................... 100
6.3 Ownership structure for aquafarming and processing.............................................. 101

6.3.1 Investor facilities and incentives.................................................................................... 101
6.4 Foreign investment framework .................................................................................... 102

6.5 National and regional aquaculture initiatives ........................................................... 105
6.5.1 Overarching objectives ................................................................................................. 105
6.5.2 Prominent challenges .................................................................................................... 107
6.5.3 International cooperation ............................................................................................. 107
6.5.4 Permit processes ............................................................................................................ 110
7. Analysis and recommendations..................................................................................... 111

7.1 Porter’s Five Forces analysis on each business segment .......................................... 111
7.1.1 Hatcheries....................................................................................................................... 111
7.1.2 Nursery/aquafarming..................................................................................................... 113
7.1.3 Fish feed.......................................................................................................................... 114
7.1.4 Vaccines ........................................................................................................................ 115
7.1.5 Processing....................................................................................................................... 116
7.1.6 Logistics (cargo services) ............................................................................................... 117
7.2 Market attractiveness for aquaculture species ......................................................... 118

7.3 Segments’ drivers and inhibitors.................................................................................. 119
7.4 Species comparison and attractiveness ....................................................................121
7.5 Segments’s key success factors and key selling points ........................................... 123
7.6 Segments’ challenges and opportunities ...................................................................125
7.7 Primary CSR issues ........................................................................................................ 128
7.8 Funding for market entry initiatives ............................................................................. 130
7.9 Recommendations ....................................................................................................... 132
Appendices .......................................................................................................................... 139
List of Indonesian maricultureknowledge institutions ........................................................... 140
List of integrated aquaculture players in Indonesia ............................................................ 142
List of equipment companies in Indonesia ........................................................................... 144
List of vaccines players in Indonesia ...................................................................................... 145
List of fish feed players in Indonesia ....................................................................................... 147
List of processing companies in Indonesia ............................................................................ 149
List of Tables
Table 1 – Exploitation level status of fish resources in each of Indonesian FMA, 2012........................ 17
Table 2 – Average consumption of fish in 2010 – 2011.............................................................................. 19
Table 3 – Number of aquaculture establishments (in units) ..................................................................... 20
Table 4 – Fish species in Indonesian marine aquafarming....................................................................... 25
Table 5 – Benefits, values & challenges for each aquaculture fish species ......................................... 32
Table 6 – Groupers (export figure and country of destination, 2012) .................................................... 36
Table 7 – Snapper (export figure and country of destination, 2012) ..................................................... 37
Table 8 – Barramundi (export figure and country of destination, 2012) ................................................ 38
Table 9 – Pompano (export figure and country of destination, 2012)................................................... 39
Table 10 – Wind speed and tide information of Indonesian water ........................................................ 42
Table 11 – Indonesia competent workforce in 2013 ................................................................................. 44
Table 12 – Output breakdown per aquaculture spots in Indonesia ...................................................... 46
Table 13 – Unique strengths and weaknesses, Aceh ................................................................................ 47
Table 14 – Environmental conditions and supporting aspects, Aceh.................................................... 47
Table 15 – Comparative assessment of regency potential, Aceh ......................................................... 49
Table 16 – Marine fish aquaculture lifecycle, Aceh .................................................................................. 49
Table 17 – Unique strengths and weaknesses, Riau Archipelago .......................................................... 50
Table 18 – Environmental conditions and supporting aspects, Riau Archipelago.............................. 50
Table 19 – Comparative assessment of regency potential, Riau Archipelago ................................... 51
Table 20 – Marine fish aquaculture lifecycle, Riau Archipelago ............................................................ 52
Table 21 – Unique strengths and weaknesses, Lampung......................................................................... 52
Table 22 – Environmental conditions and supporting aspects, Lampung ............................................ 52
Table 23 – Comparative assessment of regency potential, Lampung ................................................. 54
Table 24 – Marine fish aquaculture lifecycle, Lampung........................................................................... 54
Table 25 – Unique strengths and weaknesses, East Java ......................................................................... 55
Table 26 – Environmental conditions and supporting aspects, East Java ............................................ 55
Table 27 – Comparative assessment of regency potential, East Java ................................................. 57
Table 28 – Marine fish aquaculture lifecycle, East Java ........................................................................... 57
Table 29 – Unique strengths and weaknesses, Bali .................................................................................... 58
Table 30 – Environmental conditions and supporting aspects, Bali ....................................................... 58
Table 31 – Comparative assessment of regency potential, Bali ............................................................. 59
Table 32 – Marine fish aquaculture lifecycle, Bali ...................................................................................... 60
Table 33 – Unique strengths and weaknesses, West Nusa Tenggara .................................................... 60
Table 34 – Environmental conditions and supporting aspects, West Nusa Tenggara........................ 61
Table 35 – Comparative assessment of regency potential, West Nusa Tenggara ............................. 62
Table 36 – Marine fish aquaculture lifecycle, West Nusa Tenggara ...................................................... 62
Table 37 – Unique strengths and weaknesses, South Sulawesi ................................................................ 63
Table 38 – Environmental conditions and supporting aspects, South Sulawesi ................................... 63
Table 39 – Comparative assessment of regency potential, South Sulawesi ........................................ 64
Table 40 – Marine fish aquaculture lifecycle, South Sulawesi.................................................................. 65
Table 41 – Unique strengths and weaknesses, Maluku ............................................................................. 65
Table 42 – Environmental conditions and supporting aspects, Maluku ................................................ 66
Table 43 – Comparative assessment of regency potential, Maluku...................................................... 68
Table 44 – Marine fish aquaculture lifecycle, Maluku ............................................................................... 68
Table 45 – Unique strengths and weaknesses, West Papua .................................................................... 69
Table 46 – Environmental conditions and supporting aspects, West Papua ....................................... 69
Table 47 – Comparative assessment of regency potential, West Papua ............................................. 71
Table 48 – Marine fish aquaculture lifecycle, West Papua ...................................................................... 71
Table 49 – Cost level breakdown for hatchery company (medium scale).......................................... 76
Table 50 – Commodities' dynamics for hatchery company (medium scale)...................................... 77
Table 51 – Cost level breakdown for nursery/aquafarming business segment ................................... 80
Table 52 – Commodities' dynamics for nursery/aquafarming business segment ............................... 80
Table 53 – Cost level breakdown for vaccines business segment ......................................................... 83
Table 54 – Cost expenditure for Indonesian aquafarmer ........................................................................ 84
Table 55 – Cost level breakdown for feed production business ............................................................. 86
Table 56 – Cost level breakdown for processing business ....................................................................... 89
Table 57 – Equipment classification and function ..................................................................................... 92
Table 58 – Types of Technical Implementation Units (UPT)....................................................................... 96
Table 59 – Fields related to the business framework ................................................................................. 97
Table 60 – List of other international cooperation projects.................................................................... 108
Table 61 – Segments' drivers and inhibitors ............................................................................................... 119
Table 62 – Species’ drivers and inhibitors .................................................................................................. 121
Table 63 – Segments’ key success factors & key selling points ............................................................. 123
Table 64 – Challenges and opportunities for Indonesian aquaculture ............................................... 125
Table 65 – Primary and relevant CSR issues............................................................................................... 128
Table 66 – Relevant funding for market entry initiatives ......................................................................... 130
List of Figures
Figure 1 – Map of Fisheries Management Areas in Indonesia ................................................................. 15
Figure 2 – Production volume of fisheries in Indonesia, 2012 (tons)........................................................ 16
Figure 3 – Activities and sub-activities of fishery sector in Indonesia ..................................................... 18
Figure 4 – Indonesian aquaculture commodities breakdown, 2012 (tons) .......................................... 20
Figure 5 – Historical and projection production volume of aquaculture, 2008 -2018 (tons) ............. 21
Figure 6 – Historical and projection production value of aquaculture, 2008 -2018 (IDR trillion) ....... 22
Figure 7 – Aquaculture production of Groupers in Indonesia, 2009-2012 (tons) ................................. 27
Figure 8 – Aquaculture production of Snapper in Indonesia, 2009-2012 (tons) ................................... 29
Figure 9 – Aquaculture production of Barramundi in Indonesia, 2009-2012 (tons) ............................. 30
Figure 10 – Aquaculture production of Pompano in Indonesia, 2009-2012 (tons) .............................. 31
Figure 11 – Marine map for Indonesian currents ........................................................................................ 40
Figure 12 – Indonesian tides and wind speed information ...................................................................... 40
Figure 13 – Depiction of warm current flow in Indonesia ......................................................................... 41
Figure 14 – Indonesian salinity map .............................................................................................................. 41
Figure 15 – Aquaculture hotspot area selection process ......................................................................... 45
Figure 16 – Brackish-water Aquaculture Development Centre (BADC), Aceh ................................... 48
Figure 17 – Mariculture Development Centre (MDC), Batam................................................................. 51
Figure 18 – Main Centre for Mariculture Development (MCMD), Lampung ........................................ 53
Figure 19 – Brackish-water Aquaculture Development Centre (BADC), Situbondo ........................... 56
Figure 20 – Research Institute of Mariculture (RIM), Bali ........................................................................... 59
Figure 21 – Mariculture Development Centre (MDC), West Nusa Tenggara ....................................... 61
Figure 22 – Brackish-water Aquaculture Development Centre (BADC), Takalar ................................ 64
Figure 23 – Mariculture Development Centre (MDC), Ambon ............................................................... 67
Figure 24 – Hatchery unit of Ministry of Marine Affairs and Fisheries, West Papua .............................. 70
Figure 25 – Value chain scheme in Indonesian aquaculture industry (processed commodities..... 73
Figure 26 – Value chain scheme in Indonesian aquaculture industry (live commodities) ................ 74
Figure 27 – The hatchery business segment value chain in Indonesian aquaculture sector ............ 75
Figure 28 – Fish juveniles in styrofoam ........................................................................................................... 77
Figure 29 – The nursery/aquafarming business value chain in Indonesian aquaculture sector ....... 79
Figure 30 – Enlargement of aquafarming segment................................................................................... 80
Figure 31 – Deployed cages technologies on Indonesian aquaculture............................................... 81
Figure 32 – The vaccine business segment value chain in Indonesian aquaculture sector ............. 83
Figure 33 – The fish feed business segment value chain in Indonesian aquaculture sector ............ 85
Figure 34 – The processing business segment value chain in Indonesian aquaculture sector ......... 88
Figure 35 – Mode of logistic in Indonesian aquaculture sector .............................................................. 91
Figure 36 – Permit license mechanism in Indonesia ................................................................................ 102
Figure 37 – Porter's Five Forces Analysis ...................................................................................................... 111
Figure 38 – The GE matrix on market attractiveness on each species ................................................ 118
Abbreviations
AMDAL Environmental Repercussion Analysis
BADC Brackish-water Aquaculture Development Centre
BFT Biofloc Technology
BKPM Indonesia Investment Coordinating Board
BMKG Board of Meteorology, Climatology and Geophysical
BPOM Indonesian Drug & Food Agency
CAGR Compound Annual Growth Rate
CC Catch Certification
CCRF Code of Conduct for Responsible Fisheries
CDS Catch Document Scheme
CTI Coral Triangle Initiative
CV Limited Liability Partnership
DGP Good Distribution Practices
DNI Negative Investment List
FCR Feed Conversion Ratio
GAP Good Aquaculture Practices
GHDP Good Handling Practices
GLP Good Laboratory Practice
GMP Good Manufacturing Practices
GT Gross Tonnage
HACCP Hazard Analysis Critical Control Point
IUT Permanent Business Permit
Juklak Implementation Guidelines
KBLI Indonesian Standard Industrial Classification
KHV Koi Herpes Virus
KTP Indonesian Identity Card
MCMD Main Centre for Mariculture Development
MDC Mariculture Development Centre
MMAF Ministry of Marine Affairs and Fisheries
Master Plan programme for Acceleration and Expansion of Indonesia

MP3EI
Economic Development
MSME Micro, Small, Medium Enterprise
NACA Network of Aquaculture Centres in Asia Pacific
NPWP Tax Registration Code Number
Pedum General Guidelines
PMA Foreign Investment Company
Indonesian government programme concerned with increasing

Proksimas
aquaculture production for in-country consumption
Indonesian government programme concerned with rehabilitation of

Prolinda
aquaculture and resources
Indonesia government programme that concerned with increasing

Propekan
aquaculture production for export market
PT Limited Liability Company
RIM Research Institute for Mariculture
RPIPM Investment Recommendation for Fish Culture
SIKPI Fish Ship Transporter Permit
SSOP Standard Sanitation Operating Procedure
TAC Total Allowable Catches
TPT Technical Support Officer
UPI Fishery Processing Unit
UPP Development Service Unit
USAID United States Agency for International Development
UUD Constitution of Indonesia
WCPFC Western and Central Pacific Fisheries Committee
Research methodology and objectives
1. Research methodology and objectives
Objective Methodology Outcome
Primary and secondary

Establish a macro research: Fish Provides a clear
understanding of the aquaculture data from overview of the
Phase 1: Geographic government/
industry and identify most promising
Overview: Identify associations
hotspots and species investment
promising regions
for Phase 2 player Expert interviews: On regions/species
interviews marine fish species and (hotspots)
characteristics
Identify value chain

margins and
investment
Results in mapping
possibilities in the
Primary research: Expert of highest potential
most promising
and player interviews for investment regions,
Phase 2: Value geographical areas
detailed descriptions of players, and
Chain Analysis (green) ; identify
value chain activities and corresponding
challenges and
value for each species value chain
describe
specifics.
opportunities for
Norwegian
companies
Indicates best
investment
Share Spire’s Senior research opportunities for
Phase 3: Summary & expertise on market consultants in collective aquafarming in
recommendations assessment and brainstorming with project Indonesia.
go-to strategy research consultants Description of
foreign player entry
process.
1.1 Breakdown
a. I nterviews (primary):
Expert interviews: Associations, government institutions, academic experts
Major players in Sumatra, Java, Bali, Sulawesi, Maluku, Papua
b. Secondary research:
Industry journals, government publications, and news articles on fish aquaculture
Proprietary business databanks for extensive listing of top-tier and lower level
players in fish aquaculture
Summary and analytical outcomes
2. Summary and analytical outcomes

This report concludes an end-to-end value chain analysis in marine fish aquaculture in
Indonesia as of 2014 across all relevant industry segments -- from broodstock to logistics.
The aim is to understand and identify business Indonesian opportunities and constraints
as they relate to Norwegian companies.
Spire’s assessment evaluates the needs and capacity essential to respond to production
requirements; thereby meeting market demands and competing globally with more
technically advanced peers. Actors from all segments of the industry have been
considered for their perspectives on existing comparative challenges, key success
factors, key selling points, cost levels, and technologies applied.
The reporting approach includes identification of successful firms and dynamic key
actors within the value chain that serve as models to catalyze holistic improvement
within the industry. The value of this exhaustive assessment lies in the resulting illustrations
of the vertical and horizontal links among the value chain participants, centered on
farmers. It methodically takes into account all stage players in the industry: Breeders,
collectors, processors, buyers, the government and other supporters and influencers in
the sector. The report highlights the situation in Indonesia in which breeders and farmers
generally operate as a single entity whereas this is usually not the case with industry
peers overseas. Additionally, the nursery/aquafarming segment incorporates complex
elements within the value chain; for example, fingerlings – whether cultivated or wild --
as well as fish feed, emanate from both domestic and imported sources.
Indonesia is well-known as the largest archipelago on earth, consisting of more than

17,000 islands and boasting a coastline of over 81,000 kilometers. Yet Indonesia’s
seafood industry is still in its infancy compared to its Asian neighbors. Indonesia is
currently the ninth largest fish producer in the world. Given the country’s extensive
coastline, abundant marine resources, and a tropical climate that lends itself to
aquaculture production all year round, the country has tremendous potential to be a
leading global seafood player. Already well-connected in distribution markets,
Indonesian aquaculture products are exported to more than 200 countries with main
markets in Japan, Hong Kong, Taiwan and the United States. Nonetheless, local players
yearn for greater access to European markets in particular.
In-depth interview research was conducted only in carefully selected “hot spots”
because of the vast geography and varying levels of industry maturity. First, all provinces
with proven, multiply attractive features were flagged for inspection. Then a closer
analysis was made to identify individual regencies in those provinces with the most
promise. In each case the criteria hinged on competitive advantages and a
comparative assessment of current opportunities.
Hot spot parameters included: Current production output; environmental conditions

such as ocean current, wave frequency and salinity; pollution factors; general
infrastructure; and proximity to the government mariculture research centres, which play
a key role in aquaculture in Indonesia. Norwegian companies better equipped with fresh
knowledge through this report are encouraged to make further assessments in those
locales.
In addition to geographic considerations, individual fish species were analyzed to assess

comparative potential for development in the Indonesian aquaculture industry. Five
species emerged as being of particular interest for nurturing: Tiger Grouper, Humpback
Grouper, Barramundi, Pompano and Snapper. The main criteria in determining their
potential included: Market demand, survival rate, profit margin and comprehensiveness
of existing aquaculture technique. These species are especially recommended to
Norwegian companies for further assessment.
Spire’s recommended strategies for entering the market are divided into two broad
categories:
Locations and species recommendations – Indonesia has been struggling to

capture an advantage in several expanding high-value niche markets. With
inputs from leaders in the industry, Indonesia’s competitive position could
materialize rapidly to the benefit of all participants. Certain species and certain
geographic hot spots offer better entry and growth opportunities. For newcomers,
knowing where to go and what commodities to pursue are keys to gaining the
advantage.
Understanding the regulatory playing field, foreign investment guidelines, and

nuances of Indonesian business culture are essential to managing risk upon
entering the market. A few of the implications discussed in the body of the report
are:
Investment methods are likely to be most productive in the form of a
vertically integrated company; and
Identifying a partner is highly advisable as it offers faster cultural integration
and efficiency in reaching larger numbers of micro, small and medium
enterprises.
With foreign investors in mind, the analysis and recommendations section of this
report (Section 7) sums up where to go, which species to cultivate, and what
types of business models to use.
Segment-specific recommendations – In these recommendations, focus is given

to each segment in the value chain:
Hatchery – Numerous species have been evaluated for productivity, while
also addressing appropriate mode of market entry to reduce risks
Nursery/aquafarming – Primary consideration is geographic region and

sub-region, with due consideration for access to quality seed
Feed – Product versatility and diversity in fish feed are key in order to
achieve effective grow-out
Vaccines – Indonesia is not yet able to supply its own vaccines at

affordable prices while educating users on necessity of employing them
Processing – Key differentiation points include ability to seal exclusive

contracts and resourcefulness in expanding market outlets
Taken as a whole, these recommendations help Norwegian players single out

unique forces and trends that affect the respective aquaculture business
segments in Indonesia. Some of these dynamics may signal near-term opportunity
and success for those who invest while others are essentially warning signs of
dangerous currents.
This is surely clear to report users: Local players, environmental factors, and
geographic considerations must all be taken into account prior to establishing
business activities.
General overview of Indonesian fisheries and aquaculture
Current condition of Indonesian fishery sector
3. General overview of Indonesian fisheries and aquaculture
3.1 Current condition of Indonesian fishery sector

Indonesia is often referred to as the world’s largest archipelago. This South-East Asian
nation is well-positioned to become a global fisheries leader, particularly as regards
expansion of aquaculture. Indonesia’s marine territory counted for 62% of the total area,
extending 5,100 km along the equator between the Pacific and Indian Oceans. The
water bodies are further broken down into marine zone and inland waters.
Indonesia currently derives substantial benefit from the fishery sector. Per annum fishery
production growth reached 7% in 2011 (Indonesian Investment Coordinating Board /
BKPM), making the country the largest producer of fishery products in Southeast Asia. In
2013, fisheries contributed around 15% to the agricultural gross domestic product (GDP),
second-ranked under field crops (the biggest contributor) and making rapid gains. Such
statistics indicate that the aquaculture and fisheries sector plays a very important role in
the Indonesian economy.
Figure 1 - Map of Fisheries Management Areas in Indonesia
The fisheries of this country extend for some 5.8 million km2 (about three-quarters of the
entire national territory). They cover archipelagic waters, territorial seas, and exclusive
economic zones (EEZ). Indonesia’s inland open-water areas are estimated at 54,000 km 2,
consisting of wetlands (71.6%), riverine areas (22.1%) and lakes and reservoirs (3.9%).
Figure 1 shows the official scheme used to divide the country into 11 Fishery
Management Areas (FMA’s) (locally designated as WPP). The FMA’s are defined as
follows:
1. FMA 571 : Strait of Malaka, Strait of Hindia (West of Sumatra)

2. FMA 572 : Indian Ocean (West of Sumatra) – Sunda Strait
3. FMA 573 : Indian Ocean (South of Java) – South of Nusa Tenggara – Sawu Sea –
West of Timor Sea
4. FMA 711 : Karimata Strait – Natuna Island – South China Sea
5. FMA 712 : Java Sea
6. FMA 713 : Makassar Strait – Bone Bay – Flores Sea – Bali Sea
7. FMA 714 : Tolo Bay – Banda Sea
8. FMA 715 : Tomini Bay – Maluku Sea – Halmahera Sea – Ceram Sea – Berau Bay
9. FMA 716 : Sulawesi Sea – North of Halmahera
10. FMA 717 : Cendrawasih Bay – Pacific Ocean
11. FMA 718 : Aru Sea - Arafura Sea – East of Timor Sea
Indonesia ranked third, after China and Peru, as the country with the highest production
of captured fisheries in the world.
Figure 2 – Production volume of fisheries in Indonesia, 2012 (tons)
As recently as 2005, the wild-caught sector dominated fishery production in Indonesia

with marine products accounting for the lion’s share, or 64.17% of the total. As the total
output increased, the share of wild caught decreased to 37.61% of the total in 2012. The
driving force behind this change was the rapid emergence of Indonesian aquaculture.
The average annual increase of aquaculture production from 2009-2012 was 30.9%,
while capture fisheries grew at only 3.83% for the period.
The most common type of fish caught (more than 100,000 tons per year in 2012)
included Skipjack Tuna, Red Snapper, Scads, Indian Mackerels, Indian Oil Sardinella,
Fringescale Sardinella, Narrow Barred, Anchovies, and Eastern Little Tunas.
In a 2011 Fisheries ministry regulation, the sustainable potential of fish resources in

Indonesia was put at 6.671 million tons/year, with shares of 1.15 million tons of large
pelagic fish, 3.65 million tons of small pelagic fish, 1.45 million tons of demersal fish,
145,000 tons of reef fish, 98,300 tons of paneid shrimp, 145,300 thousand tons of reef fish
consumption, 4800 tons of lobster and 2830 tons of squid (KEP. 45/MEN/2011).
Table 1 presents data on exploitation status for various species of marine fish in each of
the FMA’s. In 2012, however, total production of marine capture fisheries was 5.82 million
tons, or over 13% in excess of the total allowable catch (TAC) limit of around 5.12 million
tons. While, with production numbers of marine fisheries for each major species
increasing by an average of at least 2.39% each year, there has surely been even more
encroachment on the sustainable limit.
Table 1 - Exploitation level status of fish resources in each of Indonesian FMA, 2012
O = Over-Exploited | F = Fully-Exploited | M-F = Moderate to Fully-Exploited | M = Moderate
(*)= Illegal Fishing effects | (1) = Java Sea > 40 m | (2) = Particularly for Fishing | (3) Particularly for Fishing | (4) Co ncrete
Fish Pot | (5) Overextend Fishing in NTT | (6) Bali Strait
Structure of fisheries activities in Indonesia
Pelagic fish play an important role in Indonesian fisheries. Accounting for around 70% of
total fish stock, large pelagic fish are keys to FMA 572 and FMA 573 while small pelagic
fish are important to FMA 717. Yet irregular or disproportionate resource utilization
throughout the Fishery Management Areas (FMA’s) is reported. Over-exploitation of
pelagics -- in Indonesia and globally – is well known. Southern Bluefin Tuna. Skipjack Tuna
and Yellow Fin Tuna are common examples of overfishing to the point of collapse.
Demersals like Red Snapper -- in the Arafura and Timor Seas in Indonesia’s far east for
example -- are likewise fished beyond sustainable limits. Demersals as a whole are
reportedly fully exploited and “likely to move to overfished status … in the South China
Sea, Java Sea, Makassar Strait, Flores Sea and Indian ocean” (Sustainable Fisheries
Partnership, June 2014). However, in other areas, such as Sulawesi, Maluku, and the
border shared with Australia, the fish have been only moderately exploited.
Policies specifying type of fishing permitted in each area are needed in order to ensure
sustainability as well as in accordance with the FAO Code of Conduct for Responsible
Fisheries (CCRF). However, as a practical matter Indonesian authorities struggle to
control small-scale illegal fishing, let alone organized pirates and fishing mafia.
3.2 Structure of fisheries activities in Indonesia
Fisheries activities are among primary economic activities that need to be developed in
order to provide national food security. This is an industry that can drive employment
and poverty reduction. The fishing industry in 2009 employed 2,641,967 fishermen and
913,788 people in other roles, with 603,856 companies and households devoted to fishing
activities.
Three basic activities, which are related to each other, comprise fishery production in
Indonesia: Fishing provides input (wild fish) for fish farming, while the fish processing
industry (further broken down into sub-activities), depending on the fishing and fish
farming inputs.
Figure 3 - Activities and sub-activities of fishery sector in Indonesia
Indonesian aquaculture
Per capital fish consumption in 2011 was 31.64 kg, up 4.81% from 2010. While this is an
acceptable figures overall, it suggests that the “Enjoy Fish” campaign has yet to yield
significant results.
Table 2 - Average consumption of fish in 2010 – 2011
Year
Detail Growth (%)
2010 2011
Fish Consumption 30.48 31.64 4.81
(kg/capita/year)
Source: Ministry of Marine Affairs and Fisheries in Indonesia, 2012
3.3 Indonesian aquaculture
3.3.1 General overview of Indonesian aquaculture industry

Indonesia has many aquaculture plus factors. The relatively stable water temperature
typical of tropical areas enables aquaculture to be carried out throughout the year. The
role of aquaculture is very strategic since it becomes a basis for maintaining the
availability of animal protein and also prolongs the sustainability of capture fisheries.
With 4.5 million tons of production in 2009, the country was already the world’s third
largest aquaculture producer in the world, after China and India, and possesses
potential to increase 35.3% per annum in 2014, with production targets of 15 million tons
by the end of the year]. Despite a slight decline of growth (from 23% to 17%) in 2013, the
total production of aquaculture in the country is projected to continue to grow at a
compound annual growth rate (CAGR) of 21.85% [through] 2018. Indonesian’s currency
devaluation could be the reason for the dip in 2014.
Aquaculture in Indonesia is practiced in fresh, brackish and marine water using a variety
of species, production facilities and methods. Production of seaweed, including the
Eucheuma spp. and Gracilaria spp. species is particularly significant. Penaeid shrimp
and milkfish (Chanos chanos) also play a big role. Marine culture has only truly
blossomed over the last ten years and is dominated by the grouper species such as
Humpback Grouper (Cromileptes altivelis) and Brown-Marbled Grouper (Epinephelus
fuscogutattus).
Based on data for 2012, seaweed accounted for about 67% of the total aquaculture
production, followed by fish (26%), shells (0.20%), crustaceans, including various types of
shrimp (0.15%) and other species (2%).
Figure 4 – Indonesian aquaculture commodities breakdown, 2012 (tons)

Table 3 organizes data about aquaculture growth since 2008, including information
about various methods or nurturing environments.
The rise of aquaculture production is led by the increasing number of aquaculture

establishments, demonstrated in Table 3 below. It is comprised of pond culture by 78%,
with 80% being freshwater ponds and 20% brackish-water ponds. Although brackish-
water pond aquaculture is a much older tradition in Indonesia, having been practiced
for more than 400 years, freshwater ponds became common to many backyards during
the Dutch occupation in the middle of 19th century.
Table 3 – Number of aquaculture establishments (in units)
Average
Growth
Year 2008 2009 2010 2011 2012 (no. of
units)
Method
Pond* 977,206 992,237 1,055,311 1,102,565 1,164,561 4%

Paddy Field* 207,490 183,819 208,394 212,434 221,224 2%
Net Pen Culture* 56,472 57,556 65,911 66,375 67,874 5%
Floating Cage* 21,847 27,034 26,705 31,232 30,441 9%
*Method of farming would be explained on pages 21 and 22
Owing to the fact that brackish-water pond culture is practiced more commercially in
Indonesia, land utilization for it is higher compared to freshwater culture. As time goes
by, land utilization rate for brackish-water will grow stagnant and freshwater utilization
rate is likely to surpass the former while also increasing its commercial production
volume.
Figure 5 below shows production volume statistics. Net pen culture is projected to remain
the dominant aquaculture system in place, followed closely by floating cages. In 2012,
the total production from this type of operation was 4.4 million tons.
Projecti
Projection
Figure 5 - Historical and projection production volume on aquaculture

in Indonesia, 2008-2018 (tons)
Source: Ministry of Marine Affairs and Fisheries (MMAF), 2012 and Spire’s analysis
Figure 6 shows historical and projected production values for the various types of
aquaculture production, with net pen culture again the biggest contributor to total
production value
The value of aquaculture in Indonesia production rose from IDR 57.63 trillion in the year
2010 to IDR 75.88 trillion in 2013, with a yearly increase of 18.35%. The highest average
annual growth rate in term of production was 42% in 2010 with the biggest contributor in
value by net pen culture. Subsequently, a minor plunge in 2011 is attributed to the
Indonesian economic downturn. It is projected that in the next 5 years, the value of
aquafarming in Indonesia will reach IDR 197.09 trillion with an average annual growth
rate of 21%.
Projecti
Projection
on
Figure 6 - Historical and projection production value of aquaculture

in Indonesia, 2008-2018a (IDR Trillion)
Source: Ministry of Marine Affairs and Fisheries (MMAF), 2012 and Spire’s analysis
3.3.2 Aquaculture methods

Figures 2 in Section 3.1 showed how activities within the three main aquaculture domains
– freshwater, brackish-water and marine -- are also categorized by different farm types
or systems, such as ponds, paddy fields, net pens, or floating cages. Those methods are
described in detail as follows:
a. Ponds
Pond compartments are usually rectangular but may also be triangular, raceway-
shaped, or oval. They can range from less than a hectare to several hectares each
and can be operated by the owner (aquafarmers) in a backyard or on an industrial
scale. The pond system is enclosed by a perimeter dike and the individual pond
compartments are separated from each other by partition dikes. The perimeter dike
is wider and higher than the partition dikes for protection. Side slopes of the dikes
range from 1:1 to 1:3, they can be made out of soil or concrete.
Pond culture in freshwater began with the stocking of common carp in backyard
ponds in West Java in the mid-1800s, spreading to other parts of Java, Sumatra and
Sulawesi islands after 1900. In the late 1970s, the introduction of new farming
technologies contributed to the availability of hatchery-produced seed and in turn
helped boost freshwater aquaculture production.
Catfish is the predominant species, with production comprising 30.2% of the total
freshwater aquaculture output. The culture of ornamental freshwater fish has also
been expanding, triggered by huge export demand and strong government
support. Since the outbreak of the koi herpes virus (KHV), that affects carp, many
common carp hatchery, nursery and grow-out farmers and operators have been
shifting to the production of ornamental fish species for the export market.
While the aggregate production value from freshwater ponds is roughly 10% more
than for the brackish-water type, total pond area devoted to brackish-water ponds is
much greater (approximately 80% versus 20% in favor of brackish-water operations).
In fact, brackish-water aquaculture predates the introduction of freshwater methods,
by the Dutch during the colonial era, and has been practiced in Java on a
subsistence basis for more than 400 years.
Area devoted to brackish-water pond areas increased significantly in the 1980s with
the successful development of the eyestalk ablation technique and the rapid growth
of shrimp hatcheries. The private sector was also able to expand brackish-water
pond areas in the provinces of South Sumatra and Lampung to improve large-scale
pond culture using the nucleus estate system, or contract farming scheme. In terms
of value, shrimp are the prime commodity, contributing 80% to total brackish-water
value.
Since brackish-water ponds are currently an in-demand commercial type of

aquaculture, a premium applies to land used for this purpose. However, due to a
reverse trend (in favor of freshwater culture), demand and land utilization prices for
freshwater ponds are expected to increase going forward.
b. Paddy Field
The paddy field system involves establishing a temporary (30 days) nursery of seed
stock using rice paddies. The stock which is later raised to maturity in nets or cages.
Fish species depend on farmer requirements and include Common Carp, Tawes,
Sepat Siam and Tilapia.
Methods are differentiated as being penyelang (before paddy planting); tumpang

sari (simultaneous with paddy planting); or palawija (in between growing seasons).
c. Net Pen Culture

Net pen culture is a generally a freshwater commercial effort and main livelihood for
those involved in it. Cages measuring around 4 x 2 x 1 m (Java) or else 4 x 2 x 2 m
(Sumatra and Kalimantan) are placed in rivers or canals. The cages are constructed
using bamboo or iron bars as support beams from which a net is bound, forming a
floating cage.
d. Floating Cage
A relatively small portion of Indonesian marine coastal areas has been developed for
marine fish culture using floating net-cages. These developments occur more
commonly in bays where there is natural protection from strong currents and waves.
Floating net cage culture may also be developed in freshwater lakes and reservoirs.
The floating net-cage size is usually 8 x 8 m and divided in to four blocks. Frames can
be made from wood, bamboo, coconut trunks, or galvanized iron and this frame is
held afloat with empty drums or buoys.
3.3.3 Fish species for marine aquaculture in Indonesia

Table 4 organizes basic information about the 12 main fish species farmed in marine
environments in Indonesia.
To achieve the required depth of analysis at each link in the value chain, this report will
hereafter focus exclusively on the following five-species subset:
 Tiger Grouper
 Humpback Grouper
 Snapper
 Pompano
 Barramundi
This subset was judged to be sufficiently representative to allow valid conclusions to be

drawn about the whole. In making such determination factors such as market demand,
survival rate, profit margin, and sophistication of existing aquaculture techniques were
taken duly into account.
Table 4 - Fish species in Indonesian marine aquafarming
NAMES
No. PICTURE OF SPECIES
Genus English Indonesian
Mycteroperca Tiger Kerapu

1.
Tigris Grouper Macan
Cromileptes Humpback Kerapu

2.
Altivelis Grouper Bebek
Brown-
Epinephelus Kerapu
3. marbled
fuscoguttatus Cantang
Grouper
Plectropomus Coral Trout Kerapu

4.
leopardus Grouper Sunu
Epinephelus Camouflage Kerapu

5.
polyphekadion Grouper Batik
Epinephelus Giant Kerapu

6.
lanceolatus Grouper Kertang
Barramundi/
Lates Kakap
7. Asian Sea
calcarifer Putih
Bass
Lutjanus Kakap
8. Snapper
malabaricus Merah
Bawal
9. Trachinotus Pompano
Bintang
Gnathanodon Golden
10. Kuwe
speciosus Trevally
11. Siganus Rabbitfish Baronang
Rachycentron Salmon
12. Cobia
canadum Hitam
Sources: Secondary Research
3.3.3.1 Grouper
Grouper is a highly valuable sea culture commodity in demand on international markets.

Grouper species in Indonesia include the Humpback Grouper (Cromileptes altivelis),
Tiger Grouper (Ephinephelus fuscogutattus) and Kertang Grouper (Ephinephelus
lanceouslatus). The production target for grouper in 2014 is 20,000 tons, with a projected
seed requirement of 50 million. This species has recorded modest aquaculture output in
Indonesia, with 13,338 tons in 2012 and an average yearly growth rate of 13% from 2009-
2012.
Sumatra was the production leader for the latest year covered by the data (2012), with
total output of 5,913 tons. It was followed by Maluku – Papua with 1,324 tons. As
indicated by Figure 7, Indonesia’s aggregate grouper production grew steadily from
2009-12, with total output of 13,338 for 2012, or 13 percent higher than the year before.
Figure 7 – Aquaculture production of Groupers in Indonesia, 2009-2012 (tons)

Source: Ministry of Marine Affairs and Fisheries (MMAF), 2012
Grouper culture is generally characterized in Indonesia by the use of wild-caught seed

for hatchery purposes and “trash” fish for feeding. However, hatchery-reared seed is also
an increasingly popular way of coping with sustainability issues. Groupers would
generally be grown out to full size, particularly for small size species. But a general
shortage of land for brackish-water ponds may impact actual practices.
Indonesia is a major producer of Grouper seed stock, with hatcheries in northern Bali
producing 200,000 to a million seeds per month, plus Humpback Grouper seed in smaller
numbers. The hatcheries generally grow fingerlings to around 2-3 centimeters; whereas
the sea-cage farms that grow the fish out to market size prefer fingerlings in the range of
5-10 centimeters.
Grouper nurseries take the form of shore-based tanks (tank culture), or cages in coastal,
brackish-water ponds (pond culture). Generally, juveniles that have been nursed in
ponds are darker in color that those nursed in tanks. However, pond-cultured grouper
juveniles tend to have a better tolerance for unpredictable environmental parameters,
such as salinity. They are the preferred choice for grow-out in sea cages because they
are already adapted to living in cages, to some extent.
Various types of feed are used during the nursery phase, including dry (commercial)
pellets, moist pellets, trash fish, mysid shrimp, or some combination of these. However,
the use of so-called trash fish is not recommended -- unless there is no alternative -- since
it results in transmission of parasites, disease outbreaks, and increases mortality.
3.3.3.2 Snapper
The most common way of designating snapper (Lutjanus spp.) in Indonesia is either
Kakap Merah or Bambangan (red snapper), regardless of the actual species. In reality a
number of Snapper species are present, including the Malabar Blood Snapper (Lutjanus
malabaricus). The Malabar is a species found throughout Southeast Asia and the
western central Pacific but that is often misidentified or confused with Humphead
Snapper or Blood Snapper (Lutjanus sanguineus). Another member prevalent in
Indonesian Snapper fisheries is generally designated Crimson (or Scarlet) Snapper.
Indonesian wild-catch Snapper fisheries cover vast areas of the archipelago from North
Sumatra to West Papua (the Indonesian portion of New Guinea). Nearly 30% of the total
wild catch of Red Snapper in Indonesia comes from waters of the Arafura Sea and Aru
Sea (to the south of West Papua); and the Eastern Timor Sea.
As a euryhaline, the Snapper is adapted for various salinity conditions. It’s also amenable
to variety of feeds. Thus Snapper (especially White Snapper) harbors a lot of promise as
an aquaculture commodity. It grows quickly and with relative ease and has a high
survival rate.
The prevailing constraints appear to be limited availability of seed and dependency on
the wild-catch. The production target for White Snapper in 2014 is 8,500 tons, with seed
requirements of 21 million units.
Figure 8 – Aquaculture production of Snapper in Indonesia, 2009-2012 (tons)

Snappers in Indonesia are caught with small-scale fishing equipment such as handlines,
bottom longlines, bottom gillnets and traps. They are of course also harvested by large
fleets of trawlers. These are operated mainly in eastern Indonesia, both by Indonesian
and foreign joint venture fishing companies.
3.3.3.3 Barramundi
Barramundi (Lates calcarifer) is known locally as Kakap Putih and is frequently spotted in
estuaries, lagoons, and coastal waters. As a diadromous species it moves between rivers
and estuaries. Barramundi is peculiar in that it can change sex from male to female,
spending early maturity as a functional male before becoming female. However, this
occurs only when it is bred in marine water. Barramundi eat other fish and crustaceans.
Under optimum conditions the fish grows to sizes as large as 1,500-3,000g in a single year.
From a commercial standpoint, Barramundi is always in demand, fresh or frozen, and
popular in Australian and Thailand. Total 2012 aquaculture production was 3,609 tons
and industry projections are for that figure to grow at an annual rate of 18%.
Figure 9 – Aquaculture production of Barramundi in Indonesia, 2009-2012 (tons)

3.3.3.4 Pompano
Pompano culture is well-developed in Indonesia with a concentration of operations in

West Java, the country’s most populous province. In 2012, Pompano production was at
121,759 tons, with an annual growth rate of 16%.
There are basically two types of this species, Silver Pompano and Black Pompano.
Currently, demand and consequently production for the Silver Pompano is higher.
Pompano can be cultivated in ponds, floating cages and net pens, while production
may also be integrated with the paddy field method. Pompano may be farmed
pursuant to both monoculture and polyculture schemes. Aquafarming of Pompano is
not complicated, which places significant net profit margins within reach.
Figure 10 – Aquaculture production of Pompano in Indonesia, 2009-2012 (tons)

3.3.4 Benefits, values and challenges for each aquaculture fish species
Table 5 below describes benefits, values and challenges of each of the Indonesian
marine aquaculture species covered. In terms of value, Groupers would have the
highest market price in the industry, ranging between USD 19 and USD 30 per kilo.
Table 5 - Benefits, values & challenges for each aquaculture fish species
Type of Fish
Benefits Values Challenges
Species
 Robust domestic and  Location
 Lucrative
international demand Unknown factors
commodity: USD 30 with regard to
drives profits
per kilo for whole natural disasters,
 Groupers are alive/non-processed pollution, predators
desirable for Humpback Grouper and user conflicts;
restaurant meal and environmental
luxurious hotels in the  Lucrative parameters are not
worldwide commodity: USD 19 well-defined
 With a weight range per kilo for whole
alive/non-processed  Broodstock
of 500-1000 gram per
Tiger Grouper Without proper
fish, a whole live fish is
attention to
Tiger valued higher than
 Grouper has flaky broodstock sizes,
Grouper processed fish
(Mycteropurca
flesh structure thus cannibalism can
 Diversification
Tigris) making it impact yield
benefits as a high-
unavailable to
earning, non-oil
undergo processing  Seed
export commodity
phase. Farmers may not be
demanding
Humpback enough in ensuring
Grouper that suppliers
(Cromileptes deliver in
Altivelis)
accordance with
the quantity, quality
and delivery terms
required for
operational success
 Pests
Farmers /
entrepreneurs may
not understand
how to control
pests and diseases
including thorough
cleaning of cages;
predator
prevention; and
intervention against
specific diseases
 Barramundi are  Good value: USD 9  When water
opportunistic per kg in alive form, temperatures drop
predators and eat USD 5.4/kg in during rainy season,
just about any processed form. Barramundi
organism in the water become less
 High fecundity boosts active, cutting into
yields yields
Barramundi
(Lates Calarifer)  One of the most  Aggressive
stress- tolerant fish behavior results in
species due to self-injury in
euryhaline nature; collisions with cage
lower mortality rate
 Will devour other
species if kept in
same cage
 Snapper is a white-  Good value: USD 4  Impacted by
meat fish in demand per kg for whole overfishing (failure
for various frozen snapper to enforce catch
Snapper
(Lutjanus international cuisines quotas and
Malabarices) unreported/illegal
fishing)
 Matures quickly,  Good value: USD 5.5  Timely sourcing of

making it easier to to USD 7 per kg for suitable feed may
raise and less risky whole frozen fish require certain level
 Amenable to of grower
herbivorous food sophistication
Pompano sources (e.g., leaves), (possibly
(Trachinotus) thus reducing complicated by
consumption of pellet framer
food illiteracy/lack of
education)
 Resists disease
3.3.5 New species being developed
3.3.5.1 Kustang Grouper
Currently Grouper fish farming is being promoted as “best choice” marine aquaculture
export commodity with a high selling price. Meanwhile, the Kustang is an attempt to
ensure the family lives up to its potential by addressing slow growth, a common problem
for many species including the Humpback. Hybridization is an effort to overcome these
problems that can yield seed with enhanced genetic and morphological
characteristics.
Kustang Grouper represents a female Humpback and male Kertang Grouper
hybridization with a growth rate that is better than the Humpback’s.
Since 2011, a key East Java research centre, the Brackish-water Aquaculture
Development (BDAC) Centre in Situbondo regency, has been actively developing these
hybrids. It has succeeded in reaching a stage of seed production marked by mass
quantities and survival rates of 15% to 20%.
Shorter growing period

Like the Cantang Grouper, the Kustang has an astonishing growth rate that can be four
times that of the Humpback. At 15 months, fish are 10 centimeters or more and weigh
around 2kg; whereas a Humpback at that stage would weigh only around 400g-500g.
Appearance
Kustang Grouper fingerlings have morphological forms that represent the two parent-
stock fish: Humpback Grouper and Giant Grouper, with dominant colors, patterns and
batik like a grouper, but the number spots is fewer, while its shape resembles giant
grouper, being longer and thicker.
Resistance to disease
Early indications are that Kustang Grouper is more resistant to VNN than the Humpback
Grouper from seed production through harvest size. In the period of 2011-2012 all newly
discovered cases of Kustang Grouper VNN attacks were on juveniles (2-3 cm). At the
same time there was a wider outbreak of VNN in Humpback Grouper.
Flavor and texture of meat

Overall very similar to Humpback Grouper, yet chewier like the Giant Grouper variety.
3.3.5.2 Yellow Fin Tuna (Thunnus albacores)
Research and development of Yellow Fin Tuna in Indonesia is ongoing due to declining
stock in nature caused by over-intensive capture efforts. With demand robust among
consumers, domestication may represent a breakthrough opportunity for this species,
and a source of foreign exchange earnings.
Fish are being taken alive from zones in the northern Bali Sea for the purpose of
propagating the offspring. However, projects remain in the pilot stage and there has not
yet been any harvested production.
3.3.5.3 Tilapia Zilli
Tilapia Zilli or Redbelly Tilapia are able to live in fresh, brackish and marine waters,
although freshwater production is most common. Nevertheless, the species is able to
adapt to a range of salinity conditions and thus has potential for being farmed in
marine-based floating cage systems.
Some of the advantages of Tilapia Zilli are:
1. Very responsive to artificial feed

2. Rapid growth
3. Ability to survive in high-density conditions
4. Good feed/ filet ratio
5. Resistant to disease and non-optimum water environment
6. Suited to local tastes
If farmed in floating cages the following parameters would be expected to yield the
best results: Salinity from ~33 ppt (with daily salinity fluctuation not to exceed 10 ppt);
temperature from 25-32 (°C); pH of 6.5 to 8.5; dissolved oxygen at 4-8 ppm; a flow
velocity of 10-20 cm/s; 1 – 3 m wave height; and water depth of 10-20m.
3.3.5.4 Napoleon Wrasse
Napoleon Wrasse (Cheilinus undulatus, Ruppell 1835) is registered as a threatened and

endangered species on the IUCN Red List. This species is fully protected and its trade is
regulated via quota system in Indonesia. Even so, in Riau province, in the Anambas
islands and others nearby (such as Temawan and Palmatak), this species is raised by
local people as an export product and a main livelihood. Farmers in Anambas grow
Napoleon in cages. While maturity takes four to five years, the fish fetches prices as high
as USD 100 per kilogram on seafood markets.
Napoleon has Protogynus Hermaphrodite reproductive patterns, i.e., born as a female

but developing male genitals during adulthood. It ranges from 55-75 cm in length with
females ash-gray with red or brown and males greenish or bluish with a grooved pattern
of stripes on head/front. Napoleon fish tend to live solitary, in pairs, or in small groups of
from three to seven individuals.
3.3.6 Domestic and export markets for each species

Diminishing fish wild stock and increasing demand for marine species have slowly shifted
the market equilibrium, creating ample opportunities for a country such as Indonesia,
endowed with a rich mariculture environment. In terms of domestic demand, Indonesian
per capita fish consumption is near 31.64 kg/annum.
3.3.6.1 Grouper market

Grouper – in the top spot on Indonesia’s aquaculture menu -- is sold to Thailand, Hong
Kong, and other parts of China for use in a variety of dishes. Several nursery and
exporting facilities located in the provinces of Nusa Tenggara Barat and Bali aim to serve
unmet international demand for this popular seafood product. Meanwhile, globalization
has permitted the products to be marketed via electronic auction in importing countries
(Aquaculture in Indonesia, June 2014).
Table 6 organizes information about demand for grouper in export destinations around
the world.
Table 6 - Groupers (export figure and country of destination, 2012)
Country Export Quantity (Kg)
Thailand 5,747,727
Hong Kong 2,577,266
Malaysia 1,856,652
Singapore 1,050,496
China 989,537
Vietnam 286,485
Taiwan 150,514
France 72,215
Puerto Rico 27,234
United States 13,406
Others (Japan, Korea, Cambodia and etc.) 13,713
Total 12,785,245
3.3.6.2 Snapper market

As a rule of thumb, 50% of total world’s snapper comes from Indonesia, with sea
territories in the Arafura Sea that constitute sources of wild-caught snapper (e.g.
Mangrove Red Snapper) very productive but also overfished. Trawling vessels in the
area have doubled in number over recent years to keep up with demand.
To meet Indonesia’s own demand for Snapper, artisanal fishermen act as the primary
medium in marketing the wild stock catch. Fresh fish are typically transported to Jakarta,
Gresik, East Java and Bali to undergo processing. Subsequently, whole-round processed
fish are shipped abroad, primarily to the U.S., Singapore and Malaysia.
Table 7 - Snapper (export figure and country of destination, 2012)
China 778,121
United States 365,851
Malaysia 296,468
Puerto Rico 279,499
France 167,080
Dominican Republic 115,115
Vietnam 75,330
United Kingdom 72,853
Singapore 71,598
Italy 46,605
Others (Taiwan, Mauritius, Reunion and

303,584
etc.)
Total 2,572,104
3.3.6.3 Barramundi market

This species is primarily bred in floating cages in western regions of Indonesia, including
the Sumatra-area provinces of Riau and Lampung. Fish processors in Indonesia are well
equipped to prepare Barramundi commodities, which involve pressure cooking fish until
bones are tender.
Table 8 - Barramundi (export figure and country of destination, 2012)
The United States 3,820
Australia 2,604
Thailand 2,084
Hong Kong 1,910
Brunei Darussalam 1,667
Philippines 1,233
Singapore 955
Taiwan 695
East Timor 469
Spain 391
Others (United Kingdom, France, and the 1,563
Netherlands etc.)
Total 17,363
3.3.6.4 Others
Other aqua commodities in abundance in Indonesia include those in the Salmon family,
such as Pompano (discussed above); and Trout.
Most Pompano sales derive from wild-caught fish and the species has long been
considered an attractive one for aquaculture, for its net profit ratio and robust demand.
Additionally, Pompano is often favored for Indonesian dishes, thus local production is
often consumed domestically.
“Minapolitan” system as an unique approach to aquaculture
Table 9 - Pompano (export figure and country of destination, 2012)
Country Export Quantity (kg)
China 35,377,884
Thailand 2,002,680
Malaysia 595,607
Japan 112,757
Vietnam 83,258
Singapore 16,070
Taiwan 12,996
Australia 10,900
United States 9,690
Mauritius 5,190
Others (Canada, Hong Kong, and Korea, etc.) 8,590
Total 38,235,622
Based on the table above, less than 40,000 tons of Pompano aquaculture products were
shipped during the year 2012.
3.4 “Minapolitan” system as an unique approach to aquaculture

Originating with the Ministry of Marine Affairs and Fisheries, this term describes a
community where all residents are engaged in aquaculture. (Mina is from the Sanskrit
word for fish and politan is Greek for city). Based on enabling regulations that are only
five years old, at least 50 such communities have been set up in far-flung provinces from
Sumatra to Maluku, with funding coming from the national government. The ministry is
reportedly targeting development of at least 120 more minapolitan projects for 2014.
Specifics vary depending on local needs and resources, but in general, every
participating household obtains a fish pond, at no cost, and is then able to keep all
profits, if any. Generally minapolitan development schemes are linked to broader
development schemes for coastal areas.
The marine climate
3.5 The marine climate

Aquaculture activities in Indonesia are heavily influenced by environmental parameters
such as marine tides, winds and currents. The map below is a very high-level overview of
water climate in the region.
Figure 11 - Marine map for Indonesian currents

Source: BMKG Indonesia (2014)
Figure 12 - Indonesian tides and wind speed information

Source: BMKG Indonesia (2014)
The marine climate
Lombok Str. Ombai

Str. Timor Passage
Figure 13 - Depiction of warm current flow in Indonesia

Source: Indonesian Throughflow, E. van Wijk & S. Wijffels (2008)
The volumetric mass of water passing through the Indonesian islands moves at
approximately 15 sv (Sverdrup) from the Pacific Ocean to the Indian Ocean. However, it
is diverted at different rates through different regions of Indonesia. Ocean currents vary
widely throughout the islands, based primarily on ocean depths and coastline shape.
Warm currents from the western Pacific carry nutrient-rich water driven by circular winds.
Meanwhile, the enormous water mass is roughly equal in salinity across the whole
Indonesian territory. These attributes are suitable for marine organisms to thrive.
Figure 14 - Indonesian salinity map

Source: NASA Aquarius Satellite View (2014)
As Figure 14 illustrates, Indonesian waters have a low average salinity, ranging from 28-33
ppt. Such conditions are driven by high precipitation rates and warm ocean
temperatures. Conditions of salinity, temperature and dissolved oxygen are very much in
line with the general requirements for marine life to flourish.
The marine climate
Table 10 - Wind speed and tide information of Indonesian water
Wave
Average Wind Average Wave Max Wave
No Location frequency
Speed (knot) Height (m) Height (m)
>3m)
1 North Aceh 4-10 0.5 - 1.0 0.5-1.25 0-5%
West Aceh to Sumatra
2 3-5 0.25 - 1.0 0.75 - 1.25 0-5%
Utara
3 West Sumatra 3-5 0.5 - 1.25 0.75 - 1.5 0-5%
4 Bengkulu-Lampung 3-5 0.25 - 1.25 0.5 - 2.0 0-5%
5 Strait of Sunda 3-5 0.25 - 1.25 0.75 - 2.0 0-5%
6 South Banten-West Java 3-5 0.5 - 1.25 0.75 - 2.0 0-5%
7 South of Central Java 3-5 0.5 - 1 0.5 - 1.25 0-5%
8 South of East Java 3-5 0.75 - 1.25 1.0 - 2.0 0-5%
9 Bali-West Nusa Tenggara 4-10 0.5 - 1.5 1.0 - 2.0 0-5%
10 Sawu Sea 4-15 0.75 - 2.0 1.5 - 2.5 0-15%
11 Timor Sea 4-15 0.75 - 2.0 1.5 - 2.5 0-15%
12 Strait of Malacca 3-5 0.25 - 0.5 0.5 - 0.75 0-5%
13 Natuna Sea 5-10 1.25 - 2.0 2.0 - 3.0 1-25%
14 Strait of Karimata 4-10 0.75 - 1.5 1.0 - 2.0 0-5%
15 South of Kalimantan 3-5 0.25 - 0.5 0.5 - 0.75 0-5%
16 Thousand Islands 3-5 0.25 -0.5 0.5 - 1.75 0-5%
17 Java Sea 4-10 0.5 - 1.0 0.75 - 1.25 0-5%
18 Bali Sea 3-5 0.5 - 0.75 0.75 - 1.25 0-5%
19 Flores Sea 5-15 0.75 - 1.25 0.75 - 2.0 0-5%
Southern part of Strait of
20 4-10 0.5 - 1.0 0.5 - 1.25 0-5%
Makassar
21 Southern Sea of Sulawesi 5-10 0.25 - 0.75 0.5 - 1.25 0-5%
22 Maluku Sea 3-10 0.75 - 1.25 0.75 - 2.0 0-5%
23 Buru-Laut Seram Sea 4-10 0.5- 1.25 0.75 - 1.25 0-5%
24 Sulawesi Sea 3-10 0.75 - 1.25 0.75 - 2.0 0-5%
25 Kep. Sangihe Talaud 4-15 0.75 - 2.0 2.0 - 3.0 5-10%
26 Halmahera Sea 3-5 0.5 - 1.5 1.5 - 2.0 0-5%
27 Northern Sea of Papua 3-8 0.5 - 1.25 1.25 - 2.0 0-5%
28 Banda Sea 5-15 0.5 - 1.25 1.5 - 2.0 0-5%
29 Sea of Aru Islands 5-10 0.5 - 1.25 0.75 - 2.0 0-5%
30 Arafuru Sea 5-12 1.25 - 1.5 1.5 - 2.0 5-15%
*Note: Frequency occurrence = 100 %, wave > 3 m happens in a week (7 days)
The marine climate
3.5.1 Pollution
Marine pollution from human activities in Indonesia, such as industry, shipping and
domestic discharges, is daunting in some areas, and only a mild concern in others.
Organisms, reefs, biodiversity as a whole, and human livelihoods are under threat from
the rate at which Indonesia is growing, developing and industrializing. There seems
always to be a new species whose extinction lies just around the corner. With marine-
sourced commodities an important part of the diet, major food safety issues also come
to the fore.
Oil spills continue to loom as a potential source of major marine pollution, since so much
oil and other fossil fuels originate from and transit through the territory. Yet attempts to
address this and other types of environmental degradation in Indonesia have often
been poorly coordinated. The Coral Triangle Initiative and Manado Ocean Declaration,
however, are noteworthy, as efforts on the part of the Indonesian government and its
partners to define and mitigate marine pollution factors and better monitor and
understand the actual capacity of the seas to support people.
Poor spatial planning is another self-inflicted injury as regards Indonesia’s exploitation of
the sea. A foreseeable scenario in where any aquaculture locale simply becomes
overcrowded, for example with hundreds or thousands of cage system operations in
close proximity to one another. All farmers involved would likely suffer since oxygen levels
would drop and the fish would suffocate.
The pollution that poses a risk to marine aquafarmers often reaches the sea via rivers.
Siak River in Riau province and Citarum River in West Java province are inter-linked with
coastal territory. Nevertheless, the dumping of household and industrial waste into these
waterways is essentially allowed, since it may often be done without penalty. In the case
of the Citarum, some estimates suggest that most of the most harmful waste originates
with the nationally important textile industry, which is concentrated in Java.
Alarming sedimentation rates observed in Sumatra, Java and other regions are another
aspect of how environments are becoming less habitable for marine organisms.
Sedimentation may have natural causes or be caused by deforestation, mining or
human activities. Fisheries in Eastern Java have for some years felt the impact of the
Sidoarjo mudflow – believed to be the world’s largest -- that erupted in 2006
simultaneously with natural gas drilling in the area.
Workforce availability
3.6 Workforce availability

Based on the statistics below, aquaculture is on an upward trend and has become
increasingly more significant to the Indonesian economy. By the end of 2014 the sector is
projected to directly or indirectly employ 13.8 million people. Below are the numbers of
workers in each industry in Indonesia as of 2013. Besides being of employable age -- 15
years old -- there are no specific requirements or credentials for those working in
aquaculture.
Table 11 - Indonesia competent workforce in 2013
No. of Workers (≥15 years old)

Industry
in million people
Agriculture 38.07
Industry 14.88
Construction 6.28
Trading 23.74
Transportation 5.04
Financial institution 2.91
Social services 18.21
Other 1.67
Source: Ministry of Manpower and NACA Aquaculture Assessment
Aquaculture hotspot mapping

4. Aquaculture hotspot mapping
Figure 15 – Aquaculture hotspot area selection process
Figure 15 illustrates the zoom-in selection process on determining hot spots for in-depth
player interviews and value chain analysis. In the beginning, all 34 provinces of Indonesia
were considered for their aquaculture potential. Subsequently, data collection and
relevant metrics were applied to screen-out less attractive areas based on significant
inputs such as: Current marine fish aquaculture production, presence of industry players,
and basic infrastructure and environmental conditions.
Table 12 lists the nine provinces selected for interview fieldwork and value chain analysis.
The similarities of the nine Prime Potential provinces is characterized most significantly by
the market value of their production of prominent species, their higher-than-average
production output per year, and the species’ survival rates. They are supported by
positive environmental factors such as low pollution conditions, stable ocean currents,
even salinity, and relatively low average wave height. In addition, infrastructure
requirements are well met by availability of electricity, port facilities, workforce, and the
necessary influence of local research centres.
In the aquaculture hotspot mapping, each province is described to understand local

conditions. The strengths and weaknesses from an internal perspective are summarized,
followed by descriptions of environmental and infrastructure conditions. Several pictures
bring life to each section, and then an important regency-to-regency comparison
refines local conditions further. Finally, fish species’ life cycles relevant to the province
are listed.
Table 12 – Output breakdown per aquaculture spots in Indonesia

Environmental Infrastructure
Value Degree of
Species Volume Overall
Province (IDR/Kg) Ave. Influence
Availability (in Tons) Survival Rate Low Ocean Labor
Salinity Wave Electricity Port of
Pollution Current Availability
Height Research
Centre
Brown Marbled
Rp 150,000 850.1 55%
Giant Grouper
Snapper Rp 55,000 240.80 53%
Aceh 967,038
Camouflage
Rp 150,000 108 55%
Grouper
Snapper Rp 60,000 1,894 51%

Giant Grouper Rp 120,000 3,628 60%
Tiger Grouper Rp 130,000 953 55%
Silver Pompano Rp 50,000 540 60%
K. Riau 115,678
Barramundi Rp 55,000 360 60%
Brown Marbled
Rp 110,000 177.51 58%
Giant Grouper
Giant Grouper Rp 120,000 96 55%
Lampung Snapper Rp 60,000 41.14 55% 1,813,532
Humpback
Rp 375,000 143 60%
Grouper
Brown Marbled
Rp 120,000 399.4 55%
Giant Grouper
Snapper Rp 50,000 34.6 60%
Tiger Grouper Rp 140,000 302 45%
East Java Humpback 6,150,379
Rp 350,000 413.7 49%
Grouper
Coral Trout
Rp 150,000 89.8 44%
Grouper
Kustang Grouper Upcoming Species
Snapper Rp 55,000 165.3 64%
Humpback
Grouper Rp 325,000 218.5 51%
Brown Marbled
Giant Grouper Rp 115,000 10.8 58%
Bali Camouflage 1,345,876

Grouper Rp 130,000 53 52%
Barramundi Rp 70,000 0.5 62%
Cobia Rp 65,000 0.10 49%
Tiger Grouper Rp 120,000 0.15 49%
Yellow Fin Tuna Upcoming Species
Pompano Rp 45,000 21 60%
West Nusa
Humpback 1,805,881
Tenggara Rp 300,000 267.2 70% v
Grouper
Red Belly Tilapia Upcoming Species
Humpback
Rp 450,000 2.00 48%
Grouper
South Coral Trout
Rp 150,000 4.10 67% 1,019,934
Sulawesi Grouper
Rabbitfish Rp 50,000 0.04 45%
Cobia Rp 75,000 0.043 48%

Golden Travielly Rp 40,000 102 62%
Humpback
Rp 440,000 39 65%
Grouper
Maluku Brown Marbled 714,338
Rp 130,000 12.48 55%
Giant Grouper
Coral Trout
Rp 120,000 18.72 62%
Grouper
Napoleon Upcoming Species

West Humpback 1,320,498
Papua Grouper Rp 470,000 50.55 63%
Snapper Rp 180,000 12.9 44%
Excellent
M oderate
Poor
Province of Aceh
4.1 Province of Aceh

The Brackish-water Aquaculture Development Centre (BADC) of Ujung Batee (the local
research centre) serves as a hub for various activities such as water resource
management and nursery and hatchery production for numerous species, dominated
by milkfish and followed by minor species including Brown Marbled Giant Grouper,
Snapper and Camouflage Grouper. Table 13 compares strengths and weaknesses of
Aceh in terms of environmental conditions for aquaculture business.
Table 13 – Unique strengths and weaknesses, Aceh
Strength Weakness
Remote from industrial area and relatively
secure from polluting factors. Modern Powerful ocean currents are destructive
infrastructure supportive to business to implemented equipment.
environment.
Table 14 – Environmental conditions and supporting aspects, Aceh

The northern shore of Sumatera island is
characterized by powerful ocean
currents, threatening the successful
deployment of aquaculture equipment in
a) Environmental Conditions
the area.
Recorded salinity rate ranges from 30-33 -
a desirable value for Indonesian
aquaculture.
Aceh Timur (East Aceh)

Bireuen
b) Identified Hot Spot Regencies
Aceh Utara (North) – Pantai Banda Ache
Aceh Selatan (South Aceh)
As a trading hub, Aceh is supported by

several national and international-scale
ports such as Idi, Kuala Raja, Kreung
c) Strategic Port Geukeuh and Labuhan Haji. These ports
are equipped with cold storage and other
amenities to facilitate domestic and
international trading.
Aceh Timur: 155,272 individuals

Bireuen: 172,364 individuals
d) Workforce Availability
Aceh Utara: 225,482 individuals
Aceh Selatan: 90,675 individuals
Province of Aceh
Figure 16 – Brackish-water Aquaculture Development Centre (BADC), Aceh
Table 15 summarizes the analysis of highest potential regencies for aquaculture within
the province of Aceh. The regency of Aceh Utara – Pantai Banda Aceh earned highest
ranking for its species variety, production capability, and advanced infrastructure,
especially with regards to proximity to port and workforce availability. In confirmation,
industry experts state that the regency possesses the largest usable coastline compared
to other regencies, thereby supporting expansion of aquaculture business.
Province of Aceh
Table 15 – Comparative assessment of regency potential, Aceh
Players Segment Infrastructure Infrastructure Available

Species Variants Production Environmental
Availability (Proximity to Port) (Port Capacity) Workforce
Province Regency *Total Rate Expert's Insights Challenges
Rate
Rate Rate Rate (Double Counted) Rate Rate Rate
(Double Counted)
Aceh Timur
Bireuen
Aceh
Aceh Utara – Possesses the biggest land area Dangerous ocean current might
Pantai Banda among the others, allowing be a destructive factor for the
Aceh spaces for aquaculture deployed technology
Aceh Selatan
There are three species with high cultivation in Aceh. Table 16 summarizes data
gathered from the local research centre, farmers and the Ministry of Marine Affairs and
Fisheries. These average lifecycle measurements are specifically relevant to Aceh and
address the most productive fish species.
Table 16 – Marine fish aquaculture lifecycle, Aceh
Province of Riau Archipelago
4.2 Province of Riau Archipelago
The Mariculture Development Centre (MDC) of Batam is responsible for propagation and
dissemination of fish juveniles of Grouper, Barramundi and Snapper in appropriate
aquaculture farming facilities.
Table 17 – Unique strengths and weaknesses, Riau Archipelago
Strength Weakness
Scarcity of local fish pellets, stifling the
Modernized technology is in place to
growth of the organism. Local
accommodate aquaculture development.
aquafarmers are forced to import
Strategically located close to Singapore for
expensive feed.
input and output logistics.
Table 18 – Environmental conditions and supporting aspects, Riau Archipelago
Crowded and intense activities at the shipyard,

discharge of industrial and organic wastes may
a) Environmental Conditions pollute the marine biotope in Batam.
Documented salinity rate is from 29-32, favorable
for aquafarming activities.
Kota Batam
Anambas
Bintan
Lingga
are capable of nurturing greatly-diversified fish
species, driving location’s versatility.
Port of Dumai is a national-scale harbor, fully-
equipped with a cold storage facility to support
c) Strategic Port fishery activities. Motorized wooden long boats are
frequently utilized to transport farmed
commodities.
Kota Batam: 740,147 individual
Anambas Island: 28,595 individuals
Bintan Island: 158,226 individuals
Lingga Island: 68,912 individuals
Batam is the core technical implementation unit in mariculture under the Director General
for Aquaculture at the Ministry of Marine Affairs and Fisheries. The operational area of
MDC Batam includes all of Sumatra and Kalimantan. The administrative centre of the
MDC Batam is in Pulau Setokok, Bulang Sub-District, Batam. Project activities within the site
include the development of seed production for Grouper species (Epinephelus spp and
Cromileptes altivelis), Barramundi (Lates calcarifer), Pompano (Trachinotus blochii),
Province of Riau Archipelago
Mangrove snapper (Lutjanus argentimaculatus), Golden trevally (Gnathanodon

speciosus) and other economically important marine species and seaweed.
Figure 17 – Mariculture Development Centre (MDC), Batam
Batam city ranks highest of the potential regencies for aquaculture business in the
Province of Riau Archipelago. Its species variants are mainly Grouper and Barramundi.
Strong industry players and vertical segment presence supports the overall value chain.
The well-developed infrastructure and strategic location has made the city a trading
hub to reach the international market, adding benefit to aquaculture activities.
Table 19 – Comparative assessment of regency potential, Riau Archipelago

Rate
(Double Counted)
Advancement of supporting
Kota Batam infrastructure is highly conducive for Skilled- workforce scarcity
aquaculture activities
Anambas
Riau
Archipelago
Bintan
Lingga
There are five species with high cultivation in Riau Archipelago. Table 20 summarizes
data gathered from the local research centre, farmers and the Ministry of Marine Affairs
and Fisheries. These average lifecycle measurements are specifically relevant to Riau
Archipelago and address the most productive fish species.
Province of Lampung
Table 20 – Marine fish aquaculture lifecycle, Riau Archipelago
4.3 Province of Lampung

The Main Centre for Mariculture Development (MCMD) Lampung is the local research
centre in charge of maintaining a healthy and productive hatchery with fish species
such as Milkfish, Grouper and Cobia.
Table 21 – Unique strengths and weaknesses, Lampung

Strength Weakness
Potential areas for aquafarming are Poor road conditions hamper accessibility.
adjacent to bay, enabling ease of Contaminated coastal area caused by
maintenance. industrial and organic waste.
Supporting infrastructure is improving with
ongoing construction.
Table 22 – Environmental conditions and supporting aspects, Lampung

High-level of sea bound transportation
and tourism activities on the shore line,
creating a hazardous element to
aquaculture
Documented salinity of 30-34 ppt and
water temperature of 28.5-31.4 degrees
Celsius, highly suitable conditions for
aquaculture.
Province of Lampung
b) Identified Hot Spot Regencies Lampung Selatan (South Lampung)

Pesawaran
Bakauheni, the central port for fishery
activities, is about to undergo major
c) Strategic Port
upgrades to accommodate docking
ships.
East Lampung: 696,055 individual

Tulang Bawang: 280,140 individuals
South Lampung: 647,874 individuals
Pesawaran: 285,879 individuals
The Main Centre for Mariculture Development or Balai Besar Pengembangan Budidaya
Laut is the technical execution agency for the Directorate General for Aquaculture,
Ministry of Marine Affairs and Fisheries. In 2001, MCMD Lampung was established by the
Ministry of Marine Affairs and Fisheries to meet the objective of improving hatchery and
grow-out techniques for marine finfish, broodstock and seed resources management
and conservation of the environment. The facility is located in Lampung, south of
Sumatra Island, approximately 17 km from Lampung town centre.
Figure 18 - Main Centre for Mariculture Development (MCMD), Lampung
Province of Lampung
Table 23 summarizes highest potential regencies for aquaculture. Pesawaran is ranked in

the best position with healthy and calm environmental conditions far from
manufacturing industries. MCMD in Lampung provides business support, supplying
juveniles for nursery and aquafarming operations.
Table 23 – Comparative assessment of regency potential, Lampung

Rate
(Double Counted)
Lampung
Selatan
Lampung
In proximity with marine research Supporting infrastructure and
Pesawaran
centre workforce scarcity
There are five species with high cultivation in Lampung. Table 24 summarizes data
Fisheries. These average lifecycle measurements are specifically relevant to Lampung
and address the most productive fish species.
Table 24 – Marine fish aquaculture lifecycle, Lampung
Province of East Java (Java Timur)
4.4 Province of East Java (Java Timur)

The Brackish-water Aquaculture Development Centre (BADC) in Situbondo, East Java
was incorporated in 1994 and its operational activities revolve around broodstock
production, proper hatchery techniques and nursing of Milkfish and Grouper.
Table 25 – Unique strengths and weaknesses, East Java

Strength Weakness
Well-positioned on Java Island, under close Highly populated and industrialized,
control from central government and with widespread pollution with possible
greater access to supporting amenities. contamination in marine ecosystems.
Table 26 – Environmental conditions and supporting aspects, East Java

Specifically in the western part of East
Java, the close proximity of aquafarming
spots to the industrialized areas are
highly-prone to pollution.
a) Environmental Conditions Stable and non-destructive current on
eastern region of East Java presents
conducive environment for aquafarming.
Recorded salinity rate is ranging from 28-
33, supportive for wide array of species.
Lamongan
Banyuwangi
b) Identified Hot Spot Regencies Bangkalan
Situbondo
Sumenep
Tanjung Wangi port is operating as hub
for marine activities, equipped with
warehouses but not cold storage facility.
c) Strategic Port
Expedition ships are coursing in the area
to load commodities to designated
dumping zone.
Lamongan: 906,179 individuals
Banyuwangi: 1,187,058 individuals
d) Workforce Availability Bangkalan: 647,906 individuals
Situbondo: 252,896 individuals
Sumenep: 816,436 individuals
The Brackish-water Aquaculture Development Centre (BADC) Situbondo was

incorporated by the Ministry of Agriculture in 1994. It is a technical implementation unit
of the Directorate General for Aquaculture (MMAF). The centre underwent major
overhaul in 2001 and now has three active divisions:
 Finfish Division: The main office is at Pecaron Countryside, Klatakan Village, Kendit
District, about 15 kilometers west of Situbondo, East Java. The division facilities are
4.39 ha in area.
 Shrimp Division: Situated in Blitok Village, Bungatan District, about 28 kilometers
west of Situbondo, East Java.
 Aquaculture Division: Situated in Pulokerto Village, Kraton District, Pasuruan, East
Java (about 100 km from the main office). Facilities are 30 ha in area.
Figure 19 – Brackish-water Aquaculture Development Centre (BADC), Situbondo
Table 27 summarizes highest potential regencies for aquaculture. Situbondo is ranked in

the best position with greatest species variety and industry segment representation.
Among other attributes, BADC Situbondo is actively engaged in developing the
aquaculture industry by nursing the fish species, providing business support to SME
players, and supplying juveniles for nursery and aquafarming operations.
Table 27 – Comparative assessment of regency potential, East Java

Rate
(Double Counted)
Lamongan
Banyuwangi
East Java Bangkalan
Comprehensive training course

Situbondo provided by Marine Research Centre Market Fluctuation
of Situbondo
Sumenep
There are five species with high cultivation in East Java. Table 28 summarizes data
Fisheries. These average lifecycle measurements are specifically relevant to East Java
Table 28 – Marine fish aquaculture lifecycle, East Java
Province of Bali
4.5 Province of Bali

The Research Institute of Mariculture (RIM) of Gondol (Singaraja) core business activity is
to research and develop prime juveniles for Snapper and Grouper. The research centre
also provides aquafarm location scouting support for prospective entrepreneurs.
Table 29 – Unique strengths and weaknesses, Bali
Strength Weakness
Strategic location flanked by the two great Progressive development in the
oceans, Pacific and Indian, the water is rich construction sector may pose pollution
in nutrition beneficial for aquaculture. risks for marine ecosystems.
Modern equipment, techniques, and
infrastructure endow greater degree of
freedom for local aquafarmers to develop
their own hatchery activities.
Table 30 – Environmental conditions and supporting aspects, Bali
The northern section of Bali remains relatively

unpolluted compared to the southern area,
supporting potential for aquaculture.
The island’s contour protects against powerful
ocean currents, resulting in a relatively calm
environment for aquaculture on the northern shore.
Excellent salinity grade from 30-34, allowing fish
species to thrive during the grow-out process.
Buleleng
b) Identified Hot Spot Jembrana
Regencies Benoa
P. Serangan
Port of Celukan Bawang as large scale port is hosting
c) Strategic Port inward bound commodities-carrying tankers. Cold
Storage is available on site to preserve the goods
Buleleng: 471,102 individuals
Benoa: 201,836 individuals
Province of Bali
Figure 20 – Research Institute of Mariculture (RIM), Bali
Bali is a strategic point of convergence for aquaculture development throughout

Indonesia. Oceanography and cutting-edge facilities are in place to ensure progressive
and sustainable activities. The research centre in Bali has fully socialized its programme
to local aquafarmers, creating autonomous offshoots and independent hatchery
entities.
Table 31 – Comparative assessment of regency potential, Bali

Rate
(Double Counted)
Buleleng –
Teluk
Pengametan
Jembrana
Buleleng - Highly-independent microeconomics

Bali Distance towards marketplace
Singaraja environment
Benoa
P. Serangan
There are seven species with high cultivation in Bali. Table 32 summarizes data gathered
from the local research centre, farmers and the Ministry of Marine Affairs and Fisheries.
These average lifecycle measurements are specifically relevant to Bali and address the
most productive fish species. The Research Institute of Mariculture of Bali is superior to
other provincial centres in terms of number of species under its care.
Province of West Nusa Tenggara (Nusa Tenggara Barat)
Table 32 – Marine fish aquaculture lifecycle, Bali
4.6 Province of West Nusa Tenggara (Nusa Tenggara Barat)

The Mariculture Development Centre (MDC) in Lombok is under authority of the central
government to test and implement research done on breeding, nursery, and hatchery
of Grouper and Milkfish.
Table 33 – Unique strengths and weaknesses, West Nusa Tenggara
Strength Weakness
West Nusa Tenggara and Bali are Local stakeholders are leaning more
adjacent to one another, sharing towards developing and nurturing sea
commonalities in their marine features. commodities such as; seaweed, abalone,
However, West Nusa Tengara holds slight lobster and pearl.
edge over Bali with its relatively pristine
nature.
Table 34 – Environmental conditions and supporting aspects, West Nusa Tenggara

Locations are distant from industrial waste and
pollution, a compatible zone for aquaculture.
Aquafarming areas are centralized close to the
mainland, safe from strong wave current that
might be harmful.
Warm temperature combined with well-matched
salinity from 30-35 create safe haven for
aquaculture.
Lombok Barat (West Lombok)
b) Identified Hot Spot Sumbawa
Regencies Lombok Timur – Teluk Ekas (East Lombok)
Lombok Timur – Labuhan Haji (East Lombok)
Port of Lembar provides ease of logistics for
c) Strategic Port aquaculture activities with storage facility on the
premise.
West Lombok: 145,679 individuals
d) Workforce Availability Jembrana: 296,398 individuals
East Lombok: 767,565 individuals
Figure 21 – Mariculture Development Centre (MDC), West Nusa Tenggara
MDC Lombok is 1 of the 12 technical implementation units of the Directorate General for
Aquaculture, operating under command of the Ministry of Marine Affairs and Fisheries,
Indonesia. MDC Lombok's responsibilities include development of applied research in
the areas of breeding and nursery of marine organisms, fish health management, and
conservation of broodstock/seed resources of marine organisms and the environment.
MDC Lombok is responsible for the development of mariculture activities in Java, Bali,
and West and East Nusa Tenggara.
Table 35 – Comparative assessment of regency potential, West Nusa Tenggara

Rate
(Double Counted)
Lombok Barat
Sumbawa
West Nusa
Tenggara
Lombok Timur
– Teluk Ekas Untapped aquaculture potential,
Local stakeholders's preference
evidenced by the existence of
towards non-fish aquaculture
Lombok Timur smaller-scale aquafarmers
– Labuhan Haji
There are three species with high cultivation in West Nusa Tenggara. Table 36 summarizes
data gathered from the local research centre, farmers and the Ministry of Marine Affairs
and Fisheries. These average lifecycle measurements are specifically relevant to West
Nusa Tenggara and address the most productive fish species.
Table 36 – Marine fish aquaculture lifecycle, West Nusa Tenggara
Province of South Sulawesi (Sulawesi Selatan)
4.7 Province of South Sulawesi (Sulawesi Selatan)

Brackish-water Aquaculture Development Centre (BADC) of Takalar serves as the
primary juveniles’ fish disseminator in South Sulawesi and is accountable for constructing
an aquaculture specimen area to educate local aquafarmers. The regency research
centre of Barru operates directly under the semi-autonomy of the local government. This
research centre is responsible for socializing aquaculture guidelines as released by the
central government.
Table 37 - Unique strengths and weaknesses, South Sulawesi
Strength Weakness
Extensive shoreline and conducive Inconsistent supply rate of fish pellets and
coastal environment juveniles
History of fishing instilled the population Inclination towards wild catch activities.
with a desire to work in aquaculture, Passiveness of Local research centre: Lack of
although they show some preference novel initiatives to collaborate with local
towards wild catch. aquafarmers.
Existence of thermal power plant
Table 38 – Environmental conditions and supporting aspects, South Sulawesi

The presence of Thermal-Power Station adjacent
to the aquaculture spots is posing a detrimental
factor.
Aquafarming areas are surrounded by the small
isles of Spermonde, shielding off the incoming
a) Environmental Conditions waves and suppressing the wave strength hitting
the coastline of South Sulawesi.
Salinity ranges from 29-34, a conducive
environment for aquaculture activities.
Warm and nutrient rich water current circulates
the aquatic zone of South Sulawesi.
Jeneponto
b) Identified Hot Spot Regencies Selayar Island
Barru
Port of Paotere is the central hub of fishery
c) Strategic Port activities equipped with cold storage and fish
health inspection facilities.
Jeneponto: 244,430 individuals
d) Workforce Availability Selayar: 123,283 individuals
Barru: 118,393 individuals
BADC Takalar is one of the 12 technical implementation units of the Directorate General
for Aquaculture, Ministry of Marine Affairs and Fisheries, Indonesia. Operating as centre
for aquaculture development in Eastern Indonesia (Sulawesi, Maluku and Papua), BADC
Province of South Sulawesi (Sulawesi Selatan)
Takalar is mandated to enhance technology for brackish-water aquaculture and the

sustainable management of broodstock, seed and water resources.
Figure 22 – Brackish-water Aquaculture Development Centre (BADC), Takalar
Jeneponto District is located in the western part of South Sulawesi Province. It has a
coastal area that stretches for about 95 km in the southern part, covering an area of
74,979 ha or 749.79 km2. It is bounded by Gowa District on the north, the Flores Sea on
the south, Takalar district on the west and Bantaeng on the east. It is considered the best
potential area in South Sulawesi for aquaculture compared to Selayar Island and
Pangkep due to player segment availability, port capacity and available workforce.
Table 39 – Comparative assessment of regency potential, South Sulawesi

Rate
(Double Counted)
Susceptible to weather
Remotely-located from industrialized
Jeneponto condition, hampering
city of Makassar
accessibility
South Selayar Island

Sulawesi
Pangkep –
Pelabuhan
Biringkassi,
Kab. Barru
There are five species with high cultivation in South Sulawesi. Table 40 summarizes data
Province of Maluku
Fisheries. These average lifecycle measurements are specifically relevant to South

Sulawesi and address the most productive fish species.
Table 40 – Marine fish aquaculture lifecycle, South Sulawesi
4.8 Province of Maluku

Mariculture Development Centre (MDC) of Ambon concentrates its operations on
Grouper roe up until the stage of juvenile nursery. Distribution of juveniles covers Raja
Ampat Regency and other smaller research centres.
Table 41 – Unique strengths and weaknesses, Maluku
Strength Weakness
Isle-esque landscape of Maluku offers Precarious distribution of fish juveniles.
relatively calm and stable water current Human Resource scarcity: Lack of
suitable for aquaculture. enthusiasm from the locals to work in
Focused funding programme for Grouper aquaculture.
development. Port availability to accommodate sea
commodities unloading activities.
Province of Maluku
Table 42 – Environmental conditions and supporting aspects, Maluku
Pollution factor in Ambon is low overall, marked

by the discharge of organic waste, cruise ships,
minor industrial development, and residue from
fisheries activities
Maluku is protected by miniscule islands taming
a) Environmental Conditions the ocean current from damaging applied
technology
Close vicinity to Pacific Ocean feeds the area
with nutrient-rich water and diverse marine fish
species
Salinity rate of 33-35 suitable for marine biota
Aru Island
Western Part of Southeast Maluku
West Seram – Kairatu Island
West Seram – Marsegu Island
West Seram – Osi Island
Inner Ambon Bay
The port of Ambon has an installed cold storage
c) Strategic Port facility to accommodate the incoming sea
commodities.
d) Workforce Availability Ambon: 714,338 individuals
MDC Ambon is one of the 12 technical implementation units of the Directorate General
for Aquaculture, Ministry of Marine Affairs and Fisheries, Indonesia. The centre is
responsible for the development of applied research in the areas of breeding and
nursery techniques of marine organisms, conservation of broodstock, seed resources
and the environment. The centre is responsible for the development of mariculture
activities in Sulawesi, North Maluku, Maluku, Irian Jaya and Papua.
Province of Maluku
Figure 23 – Mariculture Development Centre (MDC), Ambon
Maluku is one of the best potential areas for aquaculture; its excellent environmental
conditions fully support business potential. Teluk Ambon in Ambon City is ranked the best
potential regency among many active areas. The research centre, located in Ambon, is
engaged in local aquaculture business, providing juveniles to aquafarmers. The city is
supported with a developed port and high numbers of players in the processing
segment, supporting aquaculture development in the area.
Province of Maluku
Table 43 – Comparative assessment of regency potential, Maluku

Rate
(Double Counted)
Aru Island
West Southeast
Maluku
West Seram -
Kairatu Island
Maluku
West Seram -
Marsegu Island
West Seram -
Osi Island
* Govert ment support t o t he Ambon

cit y t hrough funding services for * Willingness of local people t o
Ambon - Teluk
aquacult ure and availabilit y of learn about aquacult ure and it s
Dalam Ambon
Research Cent er t o provide seeds benefit s
and feeds t o t he aquafarmers
There are five species with high cultivation in Maluku. Table 44 summarizes data
Fisheries. These average lifecycle measurements are specifically relevant to Maluku and
address the most productive fish species.
Table 44 – Marine fish aquaculture lifecycle, Maluku
Province of West Papua (Papua Barat)
4.9 Province of West Papua (Papua Barat)

The hatchery unit of Ministry of Marine Affairs and Fisheries of Raja Ampat acts as
recipient of juveniles from superior research centres outside the province while
functioning as a distribution hub for local aquafarmers in the region of Papua.
Table 45 – Unique strengths and weaknesses, West Papua

Strength Weakness
Uncontaminated, crystal-clear water with Human Resource availability: locals prefer
expansive room for development of wild catch activities. Low-level education
aquaculture. to support transition to aquaculture.
Ongoing joint ventures involving foreign Sole existence of fisheries port of Waisai is
institutions across various industry segments constraining aquaculture activities to
increase potential of Papua. Raja Ampat, specifically.
Table 46 - Environmental conditions and supporting aspects, West Papua

Water pollution in Raja Ampat is still
considered insignificant as
industrialization has yet to fully develop.
The reported waste discharge emanates
only from inhabitant's consumption
a) Environmental Conditions waste.
Wave height and ocean currents may be
an occasional issue for local
aquafarmers.
Recorded salinity rate ranges from 30-33,
compatible with a broad array of
species.
Raja Ampat – Wasai Island
Raja Ampat – Friwen Island
b) Identified Hot Spot Regencies Raja Ampat – Mansiwar Island
Wondoma Bay
Fak Fak
Kaimana
Port of Kaimana is functioning as the
primary channeling hub for fisheries
c) Strategic Port
activities in Papua, equipped with Cold
Storage facility.
d) Workforce Availability Papua: 1, 320,498 individuals
Figure 24 – Hatchery unit of Ministry of Marine Affairs and Fisheries, West Papua
With respect to the excellent environmental condition in Raja Ampat – Waisai Island, the
location is ranked as the best potential area for aquaculture due to its species variants
and the existence of a hatchery unit, which has been cooperating with private
companies and Ministry of Marine Affairs and Fisheries in developing aquaculture
business. The hatchery unit was established in 2010 and has only been concentrating
efforts on Grouper and Snapper species. The existence of a developed port with suitable
capacity is a significant support for the area.
Table 47 – Comparative assessment of regency potential, West Papua

Province Regency Rate *Total Rate Expert's Insights Challenges
Rate (Double
(Double Rate Rate Rate Rate Rate
Counted)
Counted)
* Waisai Island is support ed
wit h Research Cent er which * High-t ransport at ion cost
is a joint -vent ure of Marine (gasoline)
Raja Ampat - and Fisheries Minist ry and a * Willingness of local
Waisai Island Privat e company. Seeds and people t o join t he
Feeds provided t o aquafarming business.
aquafarmers around t he (wild-cat ch is preferred)
island.
Raja Ampat -
Friwen Island
Raja Ampat -
Mansiwar
West Papua Island
Teluk
Wondama
Fak fak
Kaimana
There are three species with high cultivation in West Papua. Table 48 summarizes data
Fisheries. These average lifecycle measurements are specifically relevant to West Papua
Table 48 – Marine fish aquaculture lifecycle, West Papua
Value chain analysis
Value chain commodity schemes
5. Value Chain Analysis

The value chain assessment is a critical step towards understanding opportunities and
constraints within Indonesian aquaculture. As mentioned, the country is currently ranked
third largest fish producer in the world. Indonesia’s climate empowers aquaculture
production all year round and the country has tremendous potential to see its seafood
producing entities become larger, better financed and more sophisticated.
The aquaculture products are exported to around 120 countries as of 2013. The United
States has become the main importer of Indonesia’s aquaculture exports; Indonesia also
exports to China, Japan and the European Union.
5.1 Value chain commodity schemes

This section will outline two value chain scenarios for Indonesian aquaculture:
Processed Commodities; and
Live Commodities
Each scenario has its own distinctive intermediaries to channel the commodities from
one end to another, such as collectors and large middlemen. Generally, operational
vessels used for transporting commodities in Indonesian aquaculture business can be
classified into two:
Self-owned: Typically owned by consigning company (in this context,
processing companies)
Third-party: Independent cargo services providers.
5.1.1 Processed commodities

Figure 25 illustrates the first value chain scenario as applied to specific aquaculture fish
commodities: Barramundi, Snapper, Pompano, Milkfish, Golden Trevally, Rabbit Fish and
Cobia. The scheme presented includes all the input supply actors up to the end markets,
whether local or export. For processed commodities, and fastest delivery, the primary
the modes of transportation are air and sea.
Figure 25 - Value chain scheme in Indonesian aquaculture Industry

(for processed commodities)
5.1.2 Live commodities

For species like Grouper however, the chain is different because the product is typically
shipped alive. Following harvesting period, the breeder or aquafarmer takes care of
shipping which is via sea or air to markets mainly located in Hong Kong, Taiwan and
Singapore. Commodities are packed in standard-size foam boxes with plane or ship
consignment operated by cargo services providers.
Figure 26 - Value chain scheme in Indonesian aquaculture industry

(for live commodities)
The production of Grouper species is primarily focused on the international market, as

there is a robust emergent demand in Hong Kong as well as Singapore and Taiwan.
Higher income among citizens of China has stimulated greater spending for tertiary and
premium goods. Meanwhile, the centre of the live fish trade is located in Hong Kong
where imports from Indonesia totaled 2.5 million tons in the most recent year shown by
the data. Thirty percent of the total was later re-exported to mainland China. Whereas
demand in China once corresponded to unsustainable fishery practices in Indonesia --
including live catch via poison methods -- this is now much less the case.
Value chain business segments
5.2 Value chain business segments
5.2.1 Hatcheries
With hatcheries a key link in the value chain, research centres like RIM in Bali, BADC in
Situbondo and MCMD in Lampung, play a crucial aquaculture role in Indonesia. Even
so, local farmers in Bali, and certain government and non-government entities have, on
their own, begun to engage in hatchery activities.
Most of the broodstock for fingerling production is obtained from the wild. Yet the
various research and hatchery programmes have been able to improve broodstock
quality to increase fingerling survival and growth rates, as well as prevent disease and
deformities. Nursery and grow-out technology has also been largely successful. Some of
the innovative hatchery practices for Groupers and other species are unique to
Indonesia. Grouper- and Barramundi seed and fry that are grown in hatcheries are sold
to local breeders and exported to international markets in Vietnam, Singapore and
Malaysia.
Figure 27 – The hatchery business segment value chain in Indonesian aquaculture sector
In terms of feed supply, several farmers noted that, in order to meet dietary requirements
for broodstock and juveniles, fish feed often has to be imported. Feed companies in
Indonesia actively follow research results on best combinations of fatty acids, minerals
and vitamins to cover the nutritional needs of specific types of marine fish.
5.2.1.1 Hatcheries/cost level

The two tables below organize information about the cost of production inputs as well as
output value, based on market prices. The data comes from primary research with
hatchery players in Indonesia.
Table 49 refers to what percent of total expenditures would be applied by a medium-
size company to each input depending on fish type. It is benchmarked to an existing
industry study and shows, for example that Humpback Grouper requires greater cost
incurrence compared to other species, since they take longer to reach maturity.
Another point to note is that the Barramundi presents higher market value, largely owing
to its remarkable survival rate. This helps escalate and maintain market demand stability.
Table 49 shows the expenditure break-down for a medium company based on
production output. Separately, it is estimated that gross profit for hatchery business might
reach 60% at the highest.
Table 49 - Cost level breakdown for hatchery company (medium scale)
Species
Cost
Cost details Tiger Humpback
expenditure Snapper Pompano Barramundi
Grouper Grouper
Electricity 8% 8% 4% 4% 4%
Fixed cost Maintenance of Facilities 2% 2% 2% 2% 2%

Labour 25% 21% 21% 22% 21%
Disinfectant/Vitamin/Drugs/Vaccine 2% 1% 1% 1% 1%
Variable Natural feed (artemia, rotivera, etc.) 26% 29% 30% 30% 30%
cost Artificial feed 20% 19% 24% 23% 24%
Oxygen 1% 1% 1% 1% 1%
Broodstock* 8% 11% 7% 7% 7%
Others Net 6% 5% 7% 7% 7%
Plastic bag 2% 2% 2% 2% 2%
Total cost 100% 100% 100% 100% 100%

Tiger Humpback
Species Snapper Pompano Barramundi
Grouper Grouper
30-45 28-40 20-40 30 25-45
Readiness to market days/ 1 - days/1 - days/1 - days/2.5- days/2.5-4
3cm 3.1cm 3.5cm 3 cm cm
Table 50 - Commodities' dynamics for hatchery company (medium scale)
Product dynamics
Humpback
Species Tiger Grouper Snapper Pompano Barramundi
Grouper
Spawn count 223,500 198,530 256,330 185,013 192,500
Survival rate (%) 15% 5% 10% 20% 35%

Output (in fingerling
33,525 9,927 25,633 37,003 67,375
units)
Selling price
800 1,500 750 500 800
(in IDR per tail)
Market value worth
26,820,000 14,889,750 19,224,750 18,501,300 53,900,000
(in IDR)
5.2.1.2 Hatcheries/production technology

The Indonesian aqua-nursery landscape is dominated by household-scale aquafarmers
with limited buying power. Backyard hatchery technology has mass appeal in
Indonesia, following implementation of various types of projects by the Ministry of Marine
Affairs and Fisheries through the research centres that have been mentioned. Aside from
the more important centres in Bali, Lampung, and East Java, investments in hatchery
production are also getting underway in Riau. The first successful techniques were
developed for Humpback Grouper in 1998, followed by Brown-Marbled Grouper in 2001.
Since then the technology has been applied to other marine finfish, including Tiger
Grouper, Coral Trout and Barramundi.
Figure 28 - Fish juveniles in styrofoam
Hatcheries typically address larval nutrition and digestion for high-value marine fin fish.
They also study intensive and semi-intensive hatchery techniques such as live prey
selection, production of SS-train rotifers, use of ultra-small copepod nauplii as first feed
prey, cannibalism and feed development for late larvae and juveniles.
5.2.1.3 Hatcheries/trading
The trading of juveniles has been very limited due to the remoteness of the production
hatchery facilities; therefore, air cargo is the only option. Juveniles are packed in 40 cm x
100 cm bags containing 12 liters of water. They are oxidized regularly and sedated with
tobacco. One bag contains 300 - 700 juveniles.
5.2.1.4 Hatcheries/challenges
Inconsistent distribution of juveniles is a recurring issue that has yet to be resolved. The
mortality rate for locally bred juveniles is frequently higher than for imported ones. Thus,
there is a need for training, capacity building and improved management in the
hatchery business segment so that local actors are able to make hatchery activities as
efficient and productive as possible.
5.2.2 Nursery/aquafarming
The distinction between breeders and aquafarmers is not necessarily recognized in
Indonesia. Inputs into the local nursery/aquafarming segment are not purely domestic in
the value chain (e.g., fish feed and fingerlings emanate from both domestic and
imported streams). Transportation-wise, land transport increases the mortality rate, thus
air and sea deliveries are preferred.
Figure 29 – The nursery/aquafarming business segment value chain

in Indonesian aquaculture sector
5.2.2.1 Nursery/aquafarming/cost level

Table 51 breakdowns show the relative aquafarming operational costs over for various
species. Labour is always a big factor, especially for more “troublesome” species. One
player, a medium-size company, estimates their gross profit margin is around 40%.
Table 51 - Cost level breakdown for nursery/aquafarming business segment

Species
Cost Tiger Humpback
Cost details Snapper Pompano Barramundi
expenditure Grouper Grouper
(7 months (8 months (15 months
(10 months (15 months
nurturing) nurturing) nurturing)
nurturing) nurturing)
Maintenance 5% 6% 5% 5% 7%
Fingerlings
23% 25% 25% 25% 26%
(5,000 tails)
Operational Feed 13% 14% 13% 15% 15%
cost Labour 42% 45% 40% 42% 40%
Medicine (vitamin,
7% 5% 9% 8% 8%
vaccines, etc.)
Diesel 10% 5% 8% 5% 4%
Total 100% 100% 100% 100% 100%
Table 52 - Commodities' dynamics for nursery/aquafarming business segment
Species Tiger Humpback Snapper Pompano Barramundi

Density (m3) 150 100 100 150 100
Survival rate 70% 50% 70% 75% 70%
Size 3cm 3cm 3cm 4cm 4cm
Fingerling price
800/cm 1500/cm 750/cm 500/cm 800/cm
(in IDR)
Ready for market ~450gr 500 500 500 1500
Nurture duration 10 15 6 7 20
5.2.2.2 Nursery/aqua farming/production technology

Nursery/aquafarming has its own associated technology requirements, illustrated in
Figure 30.
Figure 30 - Enlargement of aquafarming segment
Please note with regard to Figure 30, that platforming technologies come from foreign
suppliers as well as domestic suppliers, such as the brand Aquatec originating from
Bandung. It is highly popular among local aquafarmers.
Platform equipment often comes bundled with polyethylene net cages. The woven-type
confinement nets use a knotless system to minimize damage to ever-circling fish on the
move. Pontoons are easily assembled using a boltless knockdown mechanism and
prevent structural disintegration from forceful wave strikes.
Typically, the suppliers of platforms and cages are able to supply farmers with filtration
and maintenance equipment
Figure 31 - Deployed cages technologies on Indonesian aquaculture
5.2.2.4 Nursery/aquafarming/trading
With many of the other segments clustered around the nursery/aquafarming vertical, this
is correctly viewed as a crucial link in the chain. As noted, transportation of species from
one participant to another is typically by air or sea shipment.
Typical trade routes are:
Live Fish: Grouper is the primary example. Live Groupers are highly-valued in the
market for soft but firm meat texture. For freshness, trading companies employ en-
route circulatory pools to recycle the water in which the commodity is transported.
Primary destination markets for this species are: Malaysia, Hong Kong and China.
Processed fish: Species such as Snappers, Barramundi and Pompano are usually
marketed as fillets, both smoked and fresh.
5.2.2.5 Nursery/aquafarming/challenges
Unreliable supply of healthy juveniles is a major concern. Contamination from industrial
sources and poorly understood diseases (e.g. Red Tide epidemic in Lampung) are some
of the others.
5.2.3 Vaccines
The vaccine business is dominated by foreign-owned companies because domestic
players are not able to consistently meet threshold levels of safety and merchantability.
Regulations can be quite burdensome. For example, in the case of non-betalactam and
non-cephalosporin formulations, manufacturers would have to answer to at least three
regulators: The Indonesian food and drug agency (BPOM), World Health Organization,
and Therapeutic Goods Administration (Australia).
Figure 32 – The vaccine business segment value chain in Indonesian aquaculture sector
5.2.3.1 Vaccines/cost level

Significant economies of scale are available in vaccine manufacturing. The lion’s share
of costs, as shown in table 53 below derives from materials. The breakdown displayed
correlates with approximate gross profits for vaccines players of up to 15%.
Table 53 - Cost level breakdown for vaccine business segment

Cost details Percentage
Packaging (e.g. vials) 22%
Labour 13%
Material 37%
Utility 10%
Logistic 18%
Table 54 represents overall costs of manufacturing vaccines as a percent of all

nursery/aquafarming segment costs. It shows that a 3% level of integration (greater
incurrence) is considered high, whereas a 1.5% level (lesser incurrence) is low.
Table 54 - Cost expenditure for Indonesian aquafarmer
Cost expenditure Integration Level-Low Integration Level-High
Input cost 1.5 % 3%
5.2.3.2 Vaccines/production technology

Relevant entities often utilize Hot Purified Water Looping System to insure product
purification in the manufacturing process. Moreover, DNA-based technologies have
been partially implemented to embattle Indonesia meager understanding of the
organisms’ immune mechanism. This, however, has been drawing controversy as safety
requirements, ease of application and cost have been restrictive elements in its
commercialization in aquaculture.
Laboratory science is an integral part of the aquaculture system, especially on fish

health and suitable environmental questions. Labs are frontliners for controlling fish
disease and also provide important data for determining how to enhance the quality of
environments and technology. For example, simple skimmer protein design is used to
control water quality at the Ambon research centre to overcome the mass death in the
Angel Piyama (an ornamental).
5.2.3.3 Vaccines/trading
As noted, foreign companies dominate the vaccine trade, although local players also
play a role in distribution. Purchases often take place at the farm site, bringing together
the supplier and farm principals.
5.2.3.4 Vaccines/challenges
With vaccine-manufacturing activities concentrated in Java, prices may be prohibitive
elsewhere for logistics reason. The result is many potential customers rarely engage in
routine use of vaccines. Moreover, many farmers are simply unaware of the benefits.
5.2.4 Fish feed

To complete the value chain analysis in the Indonesian aquaculture sector, fish feed is
one of the most salient factors in terms of the inputs that hatcheries and aqua farmers
require in the business. Feed companies in Indonesia have broad product portfolios
extending to poultry, swine and other animal feeds. Still, aquaculture feed typically
accounts for around 15% to 20% of their total output.
Feed companies require feeder fish, fish and soybean meal, rice bran and coconut oil
as raw materials. These may be acquired from local distributors as well as imported from
Chile, Thailand and other origins.
Figure 33 – The fish feed business segment value chain in Indonesian aquaculture sector
5.2.4.1 Fish feed/cost Level

The structure of monthly cost level in fish feed production in table 55 is based on the
performance of a medium-scale firm. At IDR 4,800 to IDR 8,600 per kg (USD 0.4 –0.7) the
price of feed paid by farmers is considered high, which can be attributed to
dependence on imported raw materials for manufacturing. Around 50,000–60,000 tons
of fish meal products are imported annually in Indonesia thus fish feed produced in the
country is typically comprised of approximately 50% imported meal ingredients. Based
on interviews and calculations, the gross profit margin in the fish feed business would be
around 25% at the highest.
Table 55 - Cost level breakdown for feed production business
Cost expenditure Cost details Percentage
Depreciation of hammer mill 1.09%

Depreciation of mixer 0.49%
Fixed cost
Depreciation of steam 1.37%
Maintenance 0.55%
Promotion & Marketing 4.59%
Building insurance 8.19%
Electricity 5.46%
Corn flour 0.39%
Rice bean 3.28%
Soybean meal 2.18%
Fish meal 1.47%
Coconut oil 2.29%
Lime 2.40%
Variable cost Premix 2.40%
Anti-fungal 2.51%
Salt 0.98%
Antioxidant 0.04%
Vitamin C 1.31%
Labour (5 person) 54.62%
Packaging 1.09%
Transportation 1.09%
Other costs 2.18%
Total cost 100.00%
5.2.4.2 Fish feed/production technology
Indonesian feed companies typically operate with machines of Swiss, Japanese or

German origin to carry out the following processes:
1. Grinding
2. Mixing
3. Steaming
4. Pelleting
5. Drying
6. Packing
7. Logistics
Disk and hammer mill machines are used for grinding. Both vertical and horizontal mixers
are used for mixing homogenous raw materials
5.2.4.3 Fish feed/trading

Air and sea transport are used in the trade of raw materials to ensure quality and for
faster delivery. Rice bran and meals are shipped in 5 kg bags.
5.2.4.4 Fish feed/challenges

Fish feed players generally lack production capacity, thus crimping supply. In fact, some
aqua farmers say trash fish are more practical for feeding juveniles and brood stock due
to supply issues with manufactured feed. Meanwhile, industrial-scale aquaculture
businesses in Indonesia prefer imported feeds to local ones, since the higher quality
translates into a higher feed conversion ratio (FCR).
5.2.5 Processing
From large companies using advanced technology to small-scale ventures practicing

conventional methods, the processing segment has reached maturity. Here, the caught
and farmed commodities represent the input, while the output may be generally termed
“seafood”. However, the input may originate from outside the country, since local
processing companies do business with and for foreign players.
Figure 34 – The processing business segment value chain in Indonesian aquaculture sector
5.2.5.1 Processing/cost level
Table 56 shows an even split between operational costs and raw materials. (The
breakdown applies to Snapper, Barramundi and Pompano (Groupers are apart, as
discussed above.) Based on data gathered for medium to large enterprises, gross profit
margin may reach 15%.
Table 56 - Cost level breakdown for processing business
Cost Species
Cost details
expenditure Snapper, Barramundi, and Pompano
Raw Wild caught, Farm raised,
40 %
materials & Imported
Labour Labour 10 %
Overhead expenses (water,
Operational 30 %
electricity and steam)
cost
Logistic 20 %
Total cost 100 %
5.2.5.2 Processing/production technology
The main activities of fish processing companies are washing, cutting, packing and
freezing. These production process steps are supported by quality assurance measures
such as incoming inspection, in-process inspection, checking of products with metal
detector and final inspection. Processing companies must adhere to the Good
Manufacturing Practices (GMP) specified within Indonesia’s SKP fishery processing
certification regime and must be HACCP certified.
5.2.5.3 Processing/trading
The wet cargo handling policies of cargo providers sets out the terms on which live
fisheries commodities are shipped. In general:
Commodities under consignment are confined to 75 cm x 42 cm x 40 cm

styrofoam containers (3 cm thickness) such as those pictured.
Minimum density of 38 kg/m3
Outer layer coverings of styrofoam box must have minimum thickness of 0.10 mm
Inner layer coverings of box must have minimum thickness of 0.06 mm with
threefold wrapping with absorbent strip at the bottom of the box.
Single polyethylene bag is to be dedicated for one organism with threefold

minimum wrapping.
Processed commodities may be offloaded from one vessel and loaded to a different
one as commodities are traded. Trading vessels usually originate from countries such as
Hong Kong, Malaysia and Singapore.
The processing activities described above may take place aboard a carrying vessel.
Alternatively, commodities may be transported to a processing company and
processed there, before being shipped to destination markets in refrigerated containers.
5.2.5.4 Processing/challenges
Processing companies confront the following challenges:
Small operations predominate, although farmers generally lack technical

expertise, training and knowhow
Poor seed quality
Strict regulation for export market
Fluctuating catches
5.2.6 Logistics
Logistics is one of the glues holding Indonesia aquaculture together and is also one of its
biggest challenges as infrastructure is generally under-developed. There are two
principal business models:
Self-owned (owned by consigning company)
Third-parties (independent cargo service providers providing air, sea or land
carriage)
Figure 35 - Mode of logistic in Indonesian aquaculture sector
5.2.6.1 Logistics/cost level

Logistics covers an array of essential activities for trade, including transport,
warehousing, cargo consolidation, border clearance and distribution. The logistics
segment absorbs from 10% - 20% of total cost expenditure in the Indonesian aquaculture
supply chain.
5.2.6.2 Logistics/technology Mechanism

Logistics is generally technology-driven, however the specific innovations depend on the
individual segment of the aquaculture supply chain and the transportation mode
preferred. As an example, reefer- and water circulation tank-equipped vessels are
standard technology for ocean freight.
5.2.6.3 Logistics/challenges
Logistics is vital for the economic performance of any economy. Some problems that
frequently arise in Indonesia are:
Vast area, since Indonesia extends for more than 5,000 km from northwest to
southwest and has more than 6,000 inhabited islands,
With industry very much concentrated in Java, logistics offerings outside this region
are less in evidence and higher in cost, causing higher prices for goods
Poor infrastructure, such as lack of roads, chaotic seaports and overcrowded airports
-- the Achilles heel of the Indonesian economy, according to some.
Quality and competence of logistics services

Timeliness of deliveries
Ability to track and trace consignments
Customs clearance
5.2.7 Equipment
The imperative of utilizing modern aquaculture equipment has yet to be understood for
its full impact across all segments. Not only are the barriers of affordability and
education relevant factors, local equipment choices are hampering outcomes for all
stakeholders. To reach its output potential and become a leading competitor in global
trade, Indonesia’s aquaculture sector is under pressure to advance in both quantity and
quality. Categorically, this relies on tools to improve rearing and harvesting practices
and makes the sale of equipment one of the most obvious business opportunities for
foreign companies.
Table 57 illustrates equipment with widespread use. The brief list only emphasizes the how
limited local choices are at this time.
Table 57- Equipment classification and function
Type Brand Price1 Function

Knotless and HDPE-
Aquatec based netting system is
used to confine nurtured
Mesh USD 75-100/piece species and provide
protection against
foreign invasive
substance
Aquatec and BUM

Essential unit to clamp
down utilized mesh and
Floating cage unit USD 2,998-3,083/unit
as base platform for
stability
Yanmar and Nissan

Mandatory vehicle in
keeping the
Well-boat USD 63,000-66,000/unit
commodities alive and
fresh
1 USD 1= IDR 12,000
Pioneer and Airmax
Diffuser of oxygen into

Aerator
USD 1,075/unit the water for the
purpose of purification
CMA CGM
USD 7,500-8,500/unit Providing cryogenic

cooling for temperature-
Container
sensitive commodities
Aquaria
Medium for containing

Fibre pond USD 55-650/set juveniles during
rearing/nursing phase
Forestry
Keeping track of fish

growth and anomaly
Fish tagger USD 49-63/unit
from given period of
time
Kyodo
Supports farmers in
Water pump USD 50-75/unit
cleaning the pond
Trough
Fish Measuring Board USD 20/unit Measures the fish size
Berkley
Precise measurement of
Digital scale USD 25/unit
the fish weight
Hanna
Measurement to reveals
USD 23/unit acidity or alkalinity level
PH Meter
Oakton
To measure the water

Salinity Meter USD 500/unit
salinity
5.2.7.1 Issues and challenges
Importing equipment is still the norm because locally-manufactured equipments are

generally incapable of delivering similar results. At the same time, standardization for
utilized equipments has yet to be fully implemented, creating differences in desired
aquaculture outputs. As results, detrimental outcomes emerge, affecting financial
affordability level of potential users.
On additional notes, end users know-how is still at an immature level, impeding adoption
process for higher resources maximization.
Regulatory, policy and investment environment
Top-level aquaculture investors and other stakeholders
6. Regulatory, policy and investment environment
6.1 Top-level aquaculture investors and other stakeholders

Underdeveloped marine resources are a prominent feature of the investment
landscape in Indonesia as In-place technologies aren’t adequate to ensure that
optimum development of aquaculture activities. Numerous foreign-funded sector
development activities and trainings programmes have been realized in in recent years.
From 2007-2011 they were worth a total of USD 57 million (Indonesia Fisheries Report and
Information).
Prominent example of such initiatives would include the six-day NACA/World Bank
training programme in Surabaya in collaboration with the Ministry of Marine Affairs and
Fisheries. The aim of that initiative was to focus stakeholders on setting goals for
promotion of aquaculture food safety and proper supply chain management. The World
Bank has been an unflagging source of funding and technical support aimed at
enhancing Indonesian aquaculture.
The most recent cooperation initiative is a bilateral agreement between the Indonesian
Ministry of Marine Affairs and Fisheries and the Dutch aquaculture ministry. The
collaboration hopes to develop sustainable fisheries in Indonesia by 1) trimming post-
harvest losses for capture fisheries 2) encouraging broader adoption of good
aquaculture practices and 3) stimulating the business from the marketing and
distribution side.
Aside from G2G partnership programme, various B2B engagements are being
implemented as well in Indonesia. One notable example would be PT Aquafarm
Nusantara’s. One of the most prominent Swiss ventures on the ground, the company
owns a vertically integrated complex that house several parallel efforts from fingerling
grow-out to cultivation.
WorldFish in 2010 launched an initiative to help deter illegal fishing, attract buy-in from
financial entities and spur research into feasible aquaculture investment strategies.
Funding programmes have run with themes such as sustainable livelihoods and
sustainable farms.
Many fish farmers in Indonesia benefit from the Australian government’s financial support
for floating cage projects, and its credit facility programmes. USAID, the development
arm of the U.S. government, backs a major funding stream aimed at promoting
adoption of appropriate aquaculture technology in Indonesia. Various other incubator-
type initiatives have also worked to create closer ties between aquaculture-research
institutions and commercial players.
Laws, regulatory framework and standards
6.2 Laws, regulatory framework and standards
The Ministry of Marine Affairs and Fisheries serves as the principal governing body for
marine sector planning and management. At the local level (district and sub-district)the
Marine and Fisheries Service of each of the relevant provinces is in-charge. Additional
supervision and support is applied through the establishment of the Technical
Implementation Units (Units Pengembangan Teknologi or “UPT”). These units serve a
function similar to that of the “extension” programmes of the U.S. Department of
Agriculture (USDA), which is to introduce appropriate technology directly to farmers.
Nationwide there are various classes of hatcheries and labs with over 600 individual units,
as shown by Table 58.
Table 58 - Types of Technical Implementation Units (UPT)
No Types of Institution Number of Units Status

1 Central Hatchery 30 Local Government UPT
2 Coastal Hatchery 23 Local Government UPT
3 Local Hatchery 422 Local Government UPT
4 Penaeid Shrimp Hatchery 25 Local Government UPT
5 Freshwater Prawn Hatchery 7 Local Government UPT
6 Fish Health Laboratories 109 Districts and Sub-Districts
Source: Aquaculture in Indonesia, 2013
Since the Ministry of Marine Affairs and Fisheries has responsibilities in agriculture as well
fisheries, aquaculture technology transfer has not been functioning with priority focus.
Funding otherwise earmarked for smaller-scale farmers goes frequently undistributed.
Subsequently, UPTs are frequently being utilized as extensions to communicate and
disseminate novel technologies to municipal development centres throughout the
archipelago.
Indonesian law has various provisions in respect of designation, management and
development of its aquatic territory. Beyond that, it seeks to harmonize local business
practices and standards with those of global bodies. The laws, regulations, policies and
protocols that are of most practical import to foreign investors are discussed below.
6.2.1 Property and water rights

Use of certain bodies of water requires ratification from local municipalities. The majority
of freshwater and brackish areas of Indonesia are privately-owned, while property rights
are absolute and enforced. Meanwhile, shores, lakes and other parts of water are
owned by the public.
6.2.2 Infrastructure development

Under the central government’s program for Consecutive Economic Development,
local infrastructure should be overhauled by unifying private and public sectors.
Infrastructure such as roads, electrical supplies, and sea water irrigation will be provided
by the government while water treatment, certain types of expertise, and electrical
equipment and machinery supplies should come from the private sector.
6.2.3 Legal context

For convenience, relevant decrees and regulations are organized in matrix form in table
59.
It may be noted that, in very general terms, Indonesian fishery legislation hews closely to
international regulations and codes like the UN Code of Conduct for Responsible
Fisheries (CCRF) and Catch Documentation Scheme and Catch Certification (CDS and
CC) for large industrial fisheries. Beyond that, Indonesia is in the process of becoming a
member of the Western and Central Pacific Fisheries Committee (WCPFC).
Table 59 - Fields related to the business framework
No. Mandatory Fields Detailed Remarks
 Gov. Reg. No. 54 of 2003 pertaining to Fisheries
Enterprises, in which the issuance of business
licenses has been assigned to the municipalities
to expedite the overall process of investment.
Creating a conducive business  To bolster the delegation provided above,
1
environment government has released Ordinance No. 32 of
2004, declaring that management of coastal
waters up to 12 nautical miles are where local
government carries out spatial planning for
aquaculture development
 Ministerial Decree No. KEP. 01/MEN/2002 deals
Establishing Rules and Regulations
with monitoring activities related to
for the Standardization of
2 aquaculture products for human consumption
Aquaculture activities and
to ensure compliance with hygiene and
fisheries products
sanitation standards
 In reinforcing shrimp revitalization programme,
government has issued Ministerial Decree No.
3 Regulation on Seed Production KEP 41/MEN/2001 in hopes of regulating entry,
procurement and distribution of shrimp
broodstock in Indonesia
 Ministerial Decree No. KEP.02/MEN/2004,
divided covers:
4 Aquaculture Business Licensing o Premises establishment
o Commodities transporting vessels:
License good for one year
o For companies in hatchery operations,

the area of the operational site should
not be more than 0.5 ha.
o Aquafarming fish density between 300-
500 per cage; and Environmental
Repercussion Analysis (AMDAL) required
where utilized area exceeds threshold of
[5 ha]
 Ministerial Decree No. KEP 28/MEN/2002 regards
the establishment of areas affected by fish-
related diseases and covers procurement,
supply, distribution and application of
Management of Fish and
5 medicines linked to fish health
Environmental Health
 Gov. Reg. Number 47/2012 states that it is
mandatory for companies involved in
development and exploitation of natural
resources to establish CSR programmes
 Ministerial Decree KEP. 40/MEN/2003 regards
Capacity of Building Aquaculture
6 promoting capacity enhancement for small-
Segment (Fish Farmer)
scale fisheries enterprises
Source: Sustainable Aquaculture Development in Indonesia, 2012
6.2.4 Research, technology development and extension

The Agency for Marine Affairs and Fisheries Research (AMFR) and Directorate General
for Aquaculture are the authoritative bodies in regulating research. The following
aquaculture-linked activities are thus under their purview: Development and
demonstration; extension; education; information services; inspections; market
assistance training; and export assistance. There is evidence that domestication and
genetic development are a priority agenda item of the government. The reason would
be that Indonesian research entities have already had their fair share of difficulty in
dealing with poor turnover rate in breeding sector.
6.2.5 Promotion
The Indonesian government has a vision of driving market expansion in aquaculture
through strategic initiatives. Trade shows are often used as the medium for threading
economic transformation and introduction of vast array of Indonesian aquaculture
commodities. In addition, educational exchange helps reinforce overall human
capacity and capabilities and connect with potential foreign investors with government
as a go-between.
6.2.6 Other policy frameworks

The Indonesian constitution, which stipulates that Indonesia is an archipelagic state and
the state, must use bodies of water and their resources wisely and to benefit the public,
is surely one basis for Indonesian marine sector development.
Meanwhile, the statute that services as the mandate for fisheries development in
Indonesia is Law No. 31/2004. It has over 100 articles regulating all aspects of fisheries,
including objectives for fisheries development and resource management. The
importance of quality fisheries products is emphasized with all actors sharing
responsibility.
All of the following protocols are recognized and implemented to varying degrees by
the government: Hazard Analysis Critical Control Point (HACCP), Good Handling
Practices, Good Distribution Practices, Standard Sanitation Operating Procedure (for
processing companies), Good Manufacturing Practices, and Good Laboratory
Practices. There is also a health certificate procedure which is the responsibility of the
head of quality control laboratories in each province.
Of note, Indonesia also recognizes Good Aquaculture Practices, principles of sustainable
industry that are gaining traction globally. Moreover, the country is now also promoting
organic fish farming with the same ends in mind.
a. Aquaculture spatial planning
Accurate estimation of production capacity for aquafarming areas is crucial and has
been further reinforced by government regulations that put teeth in the 2009 Fisheries
Act (Law No. 45) as regards countering ongoing over-exploitation. The Mandated Plans
and Frameworks degree (No. 30/MEN/2010) have been issued for effective and efficient
spatial planning and zoning for aquaculture activities in sustaining the longevity of
natural resources.
b. Investment blacklist
Relevant points from the most recent amendment of the “Negative Investment List” that
sets out sectors wholly or partially closed to foreign investment (Presidential Decree No.
36 Year 2010) are listed below:
1. Fishery Capture Uses, Fish Capturing Ship of the Size up to 30 GT, in Water Territory
up to Twelve Miles or less (KBLI 03111) Reserved for Micro, Small, Medium
Enterprises and Cooperatives
2. Fishery Processing Business Conducted in an integrated manner by Catching Fish
in Public Water (KBLI 03131 and 03132) Reserved for Micro, Small, Medium
Enterprises and Cooperatives
3. Rearing of Marine Fish (KBLI 03211), Marine Fish Hatchery (KBLI 03212), Rearing of
Brackish-water Fish (KBLI 03213), Brackish-water Fish Hatchery (KBLI 03214), Rearing
of Fresh Water Fish (KBLI 03231), Fresh Water Fish Hatchery (KBLI 03236), Fishery
Processing Business including Salt/ Fish Drying and Other Water Biota Industry (KBLI
10211) and Smoke Fish and Other Water Biota Industry (KBLI 10212), Fishery
Processing (UPI) Business, Fermentation, Reduction/ Chemical Process, Surimi and
Jelly Fish Process (KBLI 10219), Fish product marketing, Distribution including :
Wholesale Fish Products and Export trade of Fish Product (KBLI ), are remark as
partnership
4. Fish Catching Business using catching ship of a size of 100 GT and/or over in ZEEI
catching Territory (KBLI 03111) need special licenses with Terms and Conditions
have been regulated in accordance with the Regulation of Minister of Maritime
and Fishery Number PER 12/MEN/2009 on Fish Catching Business.
5. Usage (Taking) and distribution of decorative coral/atoll from nature for
aquariums) KBLI 03119 and 46206 need recommendation from the Minister of
Maritime and Fishery.
6. Lifting of Valuable Items from a Sunken Ship’s cargo (KBLI 52229) need special
licenses according to Presidential Decree No. 19 of 2007 on National Committee
of Lifting and Using Valuable Items from Sunken Ship’s cargo.
7. Fishery Catching business using a catching ship of 100 GT size and/or bigger in
open sea catching Areas (KBLI 03111), Fishery Catching business using a catching
ship of 30 GT size and/or bigger in water areas beyond 12 miles (KBLI 03111), Sea
Sand Extraction (KBLI 08104) are 100% local capital.
6.2.7 Taxation system for Indonesian aquaculture

Chapter 1, Article 16 of Gov. Reg. No. 19/2006 has additional relevant provisions as
regards “Trawling and Aquaculture Sector”:
1. Private fishery entities classified under small-scale business will be imposed with 1%
tax rate against trawling productivity and against market criterion price of the
given species.
2. Private fishery entities classified under small-scale business will be imposed with
2.5% tax rate against trawling productivity and against market criterion price of
the given species.
3. Companies and Institutions engaging in Aquaculture line of business and utilizing
natural fish fry are bound to be levied by 1% tax rate of the total commodities
sold by the company’s operational site.
4. Companies and Institutions engaging in Aquaculture line of business and
acquiring fish fry from Hatchery are bound to be levied by 0.5% tax rate of the
total commodities sold by the company’s operational site.

Ownership structure for aquafarming and processing
6.3 Ownership structure for aquafarming and processing

Percentage of foreign shareholding varies for different types of aquaculture entities;
however a cap of 80% generally applies. The majority of the research and development
centres are publicly-owned by the government. They regulate and filter types of
technologies to be adopted. All proposals for enhancing value or otherwise introducing
novel elements are the purview of the Ministry of Marine Affairs and Fisheries.
Downstream entities may be public or privately owned. Risk-sharing may proceed based
on unwritten rules, provided the parties share common goals. With more sophisticated
partnership arrangements explicit provisions for assigning risk of livestock mortality and
loss incurred in performance are normally present.
Musharaka loans, popular within Islamic banking are frequently adopted as a way to
acceptably apportion the risk of loss as between entrepreneurs/farmers and financing
partners.
6.3.1 Investor facilities and incentives

There are several facilities and incentives that can be granted to investors pursuant to
prevailing laws and regulations:
1. According to Law No. 25/ 2007 regarding Investment, facilities bound to be granted
may be in the form of:
a. Income tax reduction up to certain level of investment made within certain
period;
b. Import duty holiday or reduction for imported capital goods, machinery, or
equipment domestically unavailable for production;
c. Import duty holiday or reduction for raw materials or support materials for
production within certain period and with certain condition;
d. Value added tax holiday or postponement for imported capital goods or
machinery or equipment domestically unavailable for production within
certain period;
e. Accelerated depreciation or amortization; and
f. Property tax reduction, especially for certain business sectors in certain region
or area or zone.
2. According to Minister of Finance Regulation No. 176/ PMK.011/2009, there is an
exemption from import duties on capital goods and raw materials for production for
two years that can be granted to a new company.
3. According to Gov. Reg. No. 52 of 2011 as amended by Gov. Reg. No. 1 of 2007

Foreign investment framework
concerning income tax facility for investment in certain business fields and/or certain
regions, the income tax facilities that can be given may be in form of:
a. Net income reduction by 30% (thirty percent) of total investments; charged for
six years each at 5% per year;
b. Depreciation and amortization: The imposition of income tax on dividends
paid to foreign tax subject to 10% or a lower rate according to the double
taxation agreements, if any; and
c. Compensation for losses for more than five years with maximum ceiling of no
more than ten years.
6.4 Foreign investment framework

The Indonesian government encourages direct investment in almost every facet of the
Indonesian economy. Foreign investment approvals are the purview of the Investment
Coordinating Board (BPKM) and counterpart agencies at the local level. The overall
dynamic of seeking a permit is described by the figure below.
Figure 36 – Permit license mechanism in Indonesia
Individual requirements for obtaining a business license include the following:

1. Letter of recommendation from the related country or letter which is issued by the
Embassy/Representative Office of the related country in Indonesia if the
applicant is The Government of another country;

2. Copy of valid passport if the applicant is a foreign individual;

3. Copy of Articles of Association of the company in English or its translations in
Bahasa from sworn translator if the applicant is a foreign company;
4. Copy of valid Identity Card (KTP) if the applicant is an Indonesian individual;
5. Copy of Articles of Establishment of the company and any amendment(s) and
approval from the Minister of Law and Human Rights if the applicant is
incorporated under the law of Republic of Indonesia;
6. Copy of Tax Registration Code Number (NPWP) for the applicant, either for
Indonesian individual or company which is incorporated under the law of the
Republic of Indonesia; and
7. This application should be properly and duly signed with sufficient stamp duty by
all applicants (if the company is not yet incorporated) or by the company's Board
of Directors (if the company is already incorporated) attached with Power of
Attorney with sufficient stamp duty from whom signs and/or submits the
application if the applicant is represented by another party (provisions
concerning the Power of Attorney is strictly regulated in this regulation.
Other pertinent aspects of the regulatory framework for investing in aquaculture are
addressed below (as summarized in table 59).
1. Creating a conducive business environment:

a) Gov. Reg. Number 54 of 2003 regarding Fisheries Enterprises, in which the issuing
of business licenses for aquaculture enterprises has already been transferred to
the regional level of government with the goal of expediting the process of
investment in aquaculture at the local level. The central government only issues
business licenses for foreign investment (PMA).
b) In compliance with Indonesian Gov. Reg. No. 54 of 2002, fishery business can only
be conducted by an Indonesian citizen or Indonesian Legal Fisheries entities, or
Overseas Fisheries Company with bilateral pact with Indonesian Government.
c) In keeping with the delegation of the above mentioned authority to issue
licenses, the government has also promulgated Ordinance Number 32 year 2004,
regarding local government wherein management of coastal waters up to 12
nautical miles from land is under the local government. In addition, spatial
planning within their respective administrative territories is also regulated by the
local governments.
2. Establishing rules and regulations for the standardization of aquaculture activities and
fisheries products.
a) In order to make possible the implementation of a responsible and sustainable
aquaculture system, a set of Directives (Pedoman Umum - Pedum) has been
issued covering proper procedures for brackish-water shrimp culture and fish

culture in reservoirs. In addition, Implementation Guidelines (Petunjuk

Pelaksanaan-Juklak) and Technical Guidelines related to environment-friendly
aquaculture have been issued, in particular for Grouper farming, seaweed
farming and freshwater aquaculture.
b) Within the framework of implementation of a fisheries product quality control
system, Ministerial Decree No. KEP.01/MEN/2002 has been issued, which addresses
quality control management systems for regulating the handling of aquaculture
produce throughout processing to ensure finished products which meet the
standards of hygiene and sanitation rules and regulations for human
consumption.
3. Regulation of seed production, in order to promote the availability of seed of the

vaname strain shrimp to fulfill the needs of implementing the revitalization
programme, the Ministerial Decree No. KEP. 41/MEN/2001 has been issued to
regulate the entry, procurement and distribution of broodstock of this prawn variety.
4. Ministerial Decree No. KEP.04/MEN/2003 addresses continuity of fish culture,

specifically export of Milkfish fry, with aim of ensuring that in-country needs are
continuously fulfilled.
5. Management of fish and environmental health is covered by Ministerial Decree No.

KEP.28/MEN/2002 regarding the establishment of areas affected by epidemic
disease and was issued to prevent the spread of Koi epidemic which affects carp
species. In addition, the Ministerial Decree No. KEP. 26/MEN/2002 regulates the
procurement, supply, distribution, use and surveillance of medicines and other
chemicals related to fish health. Official guidelines on storing medicines have also
issued.
6. Capacity building of aquaculture (fish farmer) groups is caught by regulations

related to promoting capacity-building under Ministerial Decree KEP.40/MEN/2003
(on small-scale and large-scale fisheries companies. The official policy guidelines on
the Development Service Units (Unit Pelayanan Pengembangan) Technical Support
Officers (Tenaga Teknis Pendamping) also apply.

National and regional aquaculture initiatives
6.5 National and regional aquaculture initiatives
6.5.1 Overarching objectives

The vision for the development of aquaculture is to shape Indonesian aquaculture as a
competitive and sustainable mainstay of economic growth. In order to achieve this
development vision, the three-pronged aquaculture development mission to be carried
out is:
To create business opportunities and provide employment;

To produce quality fish/fishery produce efficiently; and
To develop an aquaculture sector that is environmentally responsible.
In line with the vision and mission above, three development goals have been set for the
aquaculture sector, which are:
To increase foreign exchange, income, and create employment and business

opportunities;
To improve the nutritional quality of the nation’s diet through the consumption of
fish; and
To protect, restore and conserve and fisheries resources.
Three main policies will be followed in order to achieve the goals, undertake the mission
and realize the vision for aquaculture development, which are:
Increase aquaculture production for export, with especial focus on increasing

competitive advantages through the development and application of super-
efficient and sustainable technology;
Development of aquaculture production for in-country consumption, with
especial focus on increasing and strengthening the farming of area-specific
(local) commodities and improving community-built ponds; and
Establishing mechanism for controlling the use (exploitation) of aquaculture
resources, with especial focus on increasing the attention paid towards the
conservation of fish and other aquaculture resources.
The implementation of these three policies will be based on Indonesian Fisheries

Management Area (refer to figure 1), which will employ competitive and sustainable
business practices and develop a number of strategic commodities.
The aquaculture development programmes will be carried out through three core
programmes.

PROPEKAN is a programme for increasing aquaculture production for export. It is about

the creation of a movement involving all stakeholders working together to develop
aquaculture activities based on partnerships and cooperation between farmers within
each zone. The aim is to increase the productivity and quality of produce through
intensification, expansion (increases in farmed area), rehabilitation and the efficient
application of sustainable technology for increasing the production of aquaculture
commodities destined for export.
The choice of commodities to be developed under PROPEKAN is based on four criteria:
1. High economic (market) value

2. Well-developed (applicative) aquaculture technology
3. High market demand both abroad and in-country
4. Suitable for mass participation in farming and development
The type of commodities to be developed under PROPEKAN include: Seaweed,

Grouper, White Snapper, Abalone, Lobster, Shrimp, Artemia, Milkfish, Tilapia, Catfish and
Carp.
PROKSIMAS is a programme for increasing aquaculture production for in-country

consumption. It is directed towards the development of participatory movements within
aquaculture zones, bringing together a number of interested parties in order to develop
the farming of food fish through intensification, expansion (increased area), and
rehabilitation, and through efficient use of sustainable technology.
The chosen commodities were selected based on ease of cultivation, high growth rates,
affordability and with priority given to fulfilling the need for in-country consumption. The
commodities that the programme targets include Oyster, Milkfish, Goldfish, Tilapia,
Pomfret and Catfish.
PROLINDA is a programme for the protection and rehabilitation of aquaculture

resources. It is focused on activities for the rehabilitation of aquaculture zones, to
achieve optimum environmental conditions for supporting the development of
aquaculture in freshwater, brackish-water and marine environments.
PROLINDA has three core programmes supported by six support programmes which are:
1. The Development of Infrastructure for Aquaculture;
2. The Development of Seed Production Systems;
3. The Development of Production Systems;
4. The Development of Fish and Environmental Health Management Systems;

5. The Development of Aquaculture Business Systems; and

6. The Development of Administrative and Organizational Systems.
6.5.2 Prominent challenges

Constraints include:
Aquaculture is often on a household scale; thus farmers have hard time keeping up
with new regulations, technology, and compliance and enforcement initiatives.
In place regulations aren’t applied uniformly, thus traded commodities have been
observed to contain residue far in excess of permitted levels
6.5.3 International cooperation

Funding Initiatives and bilateral agreements are vital in promulgating and spurring
development in the Indonesian aquaculture sector. Table 60 below organizes certain
key agreements.
A project of Fishery Cooperation between the Norwegian Government and Indonesian
Ministry of Marine Affairs and Fisheries (MMAF) was arranged under an agreement of INS
06/035 for period 2009-2012. The Project was worth NOK 5.2 million. A letter of intent was
signed in 2006 between the two parties and it’s agreed that the Norwegian and
Indonesian governments will pursue opportunities for cooperation on marine and
fisheries management with the aim of promoting sustainable and equitable use and
conservation of the marine resources.
Norway allocated NOK 6 million to facilitate planning and the institutional cooperation.
In 2006 a Norwegian mission representing fisheries research, management and
education visited Indonesia and had meetings with Indonesian institutions, donors and
NGOs. A revisit to Norway was made at the same year. A project proposal was
developed and handed over to the embassy in Jakarta in May 2007.
The development objective of the programme is to build competence in the fields of
fisheries management, including stock assessment and aquaculture aiming at
sustainable development of Indonesian marine resources. The project aims to facilitate
the implementation of specific capacity -building activities in fisheries management and
aquaculture. The important agenda items according to the project documents are:
To implement training course for stock assessment
To complete the survey planning in the Bali Strait
To develop and test and indicative system of catch recording in the area
To validate the predictive fishing model
To implement a workshop with stakeholder
To diagnose the aquaculture stations in terms of technical problems
To develop realistic development for each station
Training of aquaculture specialists (in Norway)

To develop National Fish Health Reference Laboratory and Strategy for disease
prevention
Successful intake of students in Norwegian institutions
To implement educational and training courses
To implement a final summing-up seminar
Table 60 - List of other international cooperation projects
Partnership Programme Background

 In collaboration with Taiwan to develop
Indonesia Economic and Trade – Taipei
fishery industry between Indonesia and
Economic and Trade
Taiwan.
 To support Indonesia’s capacity to trade in
United Nations Industrial Development
fisheries by improving business support
Organization of Switzerland-Indonesia
services available to the sector.
 Fishery activities such as Technical
Cooperation Programme on development
of preventive aquatic animal health
protection plan and enhancing
emergency response, capacity to shrimp
disease outbreak.
 Some of the ongoing projects are Bay of
FAO-Indonesia
Bengal Large Marine Ecosystem Project,
strategies for trawl fisheries by catch
management (REBYC-II CTI) and regional
fisheries livelihoods programme for south
and southeast involving participants from
Cambodia, Indonesia, Philippines, Sri
Lanka, Timor L’este and Vietnam
 Comprehensive capacity-building
cooperation project focusing on activities
that will enhance competitiveness of
Indonesia's industrial, agricultural, fishery
Indonesia-Japan Economic Partnership and forestry products including joint
Agreement initiatives to further promote
competitiveness of Indonesian
manufacturing industry through Initiative
for Manufacturing Industry Development
Centre
 Facilitates information exchange on
research, management and
technological developments;
Indonesia-Australia Fisheries Cooperation
complementary management of shared
stocks; training and technical exchanges;
aquaculture development; and trade

promotion and cooperation to deter

illegal fishing
 The collaboration has set an aim to

develop sustainable fisheries in Indonesia
with three primary aims: Cut back on
Indonesia-The Netherlands MoU on losses of post-harvest capture fisheries,
Fisheries Sector augmenting the aquaculture products
based on best practices and boosting
aqua commodity marketing and
distribution activities.

6.5.4 Permit processes

As one of the strategic headliners of the Indonesian government, the aquaculture
business should be faster developed, more focused and better planned, by taking into
account the fishery resources preservation, as well as globalization era and free market.
To cater to interests of prospective investors in the fishery sector, especially aquaculture,
ease in the permitting process, especially the underlying RPIPM permit and as well as
the SIKPI transporter and any other permits required for transporting live commodities is
crucial.
Types of permit arrangements issued by Directorate General for Aquaculture are:
Investment Fish Culture Recommendation (RPIPM). Minister of Marine Affairs and

Fisheries delegates the authority to BKPM as regards permanent business permit (IUT)
for foreign investment but BPKM action is guided by RPIPM recommendation.
Fish Live Import Permit to Indonesia. Requires, inter alia, permit issued by Directorate
General for Aquaculture.
Fish Ship Transporter Permit (SIKPI). Categories established under Directorate General
for Aquaculture are:
Vessel operated by fishery-sector entity (Indonesian or foreign-flagged vessel)
Vessel operated by non-fishery-sector entity (Indonesian or foreign-flagged
vessel)

Analysis and recommendations
Porter’s Five Forces Analysis on each business segment
7. Analysis and recommendations
7.1 Porter’s Five Forces Analysis on each business segment

In this section, Porter’s Five Forces provides a framework for industry analysis and
feasibility. A graphic representation of Porter’s Five Forces is:
Figure 37 - Porter's Five Forces Analysis
7.1.1 Hatchery
Bargaining power of suppliers
The broodstock that supplies the input for the hatchery segment is heavily dependent on
available natural stock. Many research facilities are still compelled to acquire
broodstock from the wild. Nevertheless, as broodstock can be maintained for long
periods, availability is not an immediate issue. For fish feed, companies already
operating or intending to set up operations have a wide range of alternatives, as
domestic feed producers such as Cargill, Japfa Feed and Central Proteina Prima have a
proven capability of producing consistently formulated feed. On the other hand,
vaccine is still largely dominated by foreign firms, especially in the eastern part of
Indonesia. This has resulted in market prices consistently near the price ceiling.

Bargaining power of buyers
As local aquafarmers serve only the domestic market, the industry has not yet reached a
mature stage. Acquiring broodstock from overseas markets is not viable considering the
costs of importing. Thus, local aquafarmers have to concentrate on domestic supply
streams with a limited range of providers, indicating high switching costs
Threat of new entrants
Hatcheries in Indonesia are still in the form of research facilities, although some
companies have expressed interest and have initiated provisional hatchery
programmes. This trend is apparent in Bali, as hatchery-based businesses gradually
supplant local research facilities like RIM.
Additionally, existing ground rules require that before undertaking any such initiative, the
company must submit a proposal to the Ministry of Marine Affairs and Fisheries for
ratification from the Directorate General for Aquaculture. As research facilities are under
the supervision of the Ministry of Marine Affairs and Fisheries, bypassing or taking over
their role would present some difficulty.
Competitiveness within the segment
The competitive landscape in the Indonesian hatchery segment largely remains under
monopoly rule of regional research facilities. All new entrants must go through screening
and supervision procedures. Nevertheless, the growing number of small-scale hatcheries
is projected to disrupt the equilibrium over the next few years.
Threats of substitute products
Because of monopoly control of the hatchery business, private hatcheries can only
produce the species grown in the research facilities.

7.1.2 Nursery/aquafarming
In the nursery/aquafarming segment, backward integration is less likely due to

differences in operations. Hatcheries are mainly controlled by research facilities. In
addition, research facilities have an extended role in providing aquafarming starter
stock examples for aqua farmers, implying that the independence of private operations
remains low. This low product differentiation narrows alternatives for operators.
Forward integration is highly probable as local aqua farmers tend to bypass large
wholesalers and sell directly to restaurants, processing plants, and overseas end-markets.
This means increased product indispensability. However, when capture fisheries are
taken into consideration, the bargaining power of buyers is reduced, as the majority of
fish processing plants remain loyal customers of capture fisheries, effectively giving them
greater bargaining power.
Threats of new entrants
Prospective entrants might benefit from low product differentiation, ease of access to
suppliers, and lack of distinct brands. On the other hand, required capital investment is
high, as investment permits, technology, and equipment are needed. Regulations,
particularly for export activities, appear to be stringent. Companies have to comply with
commodities traceability laws, which require costly investment to accommodate
operations.
Market rivalries are a major issue as competing companies is fighting to supply overseas
markets. Low product differentiation further reinforces competition intensity.
Capture fisheries are a threat to aquafarming. As an illustration, a supermarket might

prefer to source supplies from capture fisheries to minimize dependency on fish life
cycles.

7.1.3 Fish feed

Raw material inputs of fish feed has minor segregation. One differentiating element is
business acumen and technical ability. Otherwise, feed-producing companies have the
freedom of choosing suppliers without high penalties.
Adopted technology within the fish-feed industry would likely affect buyer preferences.
The business entities capable of delivering the most consistent feed have the greatest
opportunity to flourish. In terms of labour, advancing technology has led to more
efficient and economical operation with less input of labour. All in all, the purchasing
power of buyers is moderate.
New market entrants are more likely to reap benefits from low product differentiation
and the relatively minor penalties for buyers who switch. Moreover, there is a significant
requirement for initial capital investment. Compliance with existing regulations is difficult
as well, considering the inconsistent structuring of relevant laws in Indonesia.
There are a few businesses operating in the feed segment in Indonesia. The market
structure resembles an oligopoly with each player operating within its own market share
and zone. Thus market penetrations will likely be met with a fair degree of effective
resistance by existing players.
Widespread use of trash fish is a constant impediment to the growth of the feed
segment. Lack of general awareness and urgency from local aqua farmers have stifled
mass adoption of fish feed as trash fish is considerably cheaper to acquire.

7.1.4 Vaccines
Production sources of fish vaccine are import-reliant, enabling price discrimination from
the supplier side. This has left potential buyers without alternatives and necessitates the
acquisition of raw materials from existing suppliers. To sum up, the bargaining power of
suppliers is high.
The use of vaccine in aquaculture is of paramount importance as it affects the health

and final quality of the commodities. Vaccine is often regarded as a predictive cost and
Indonesian aquaculture stakeholders tend to avoid usage of vaccines—but to no avail.
By inference, the bargaining power of buyers is relatively low.
Acquisition of adequate business acumen and production skills is a real hurdle that new
entrants must somehow overcome. Additionally, the vaccine market of Indonesia has its
own, firmly-established market players. Attempts on market entry from foreign players or
newcomers may stumble since as competition structure has been rigid for some time.
The competition within the market is rigid, intense, and marked by a lack of product
differentiation.
The use of herbal remedies for treatment of fish diseases exist, albeit still in small-scale.
Thus, the threat posed by these products is still considered to be minimal.

7.1.5 Processing
The Indonesian processing segment consists of conventional and advanced scale

where raw materials are farm-raised, imported, and captured. In practice, middlemen
(also called traders) are influential in gathering the fish as they buy fish from the
fisherman or farmers and sell to the processors. On certain occasions, some processing
companies might deploy their own trawling vessels or utilize backward integration with
aqua farmers, bypassing the intermediaries.
The Indonesian seafood industry ranks among the largest in the world. The potential of
the sector for both domestic food security and exports is large. Most of the larger
processors are located in and around production areas such as North Sumatra. The rest
are based around Jakarta and Surabaya. Little processing is done for local markets.
Local processing activities include smoking or salting fish. About 60% of marine fish is
consumed by overseas market.
In general terms, entering this segment requires large operational capital investment
and, subsequently, certification of the production output. National and international
regulations are the main impediment to distributing products domestically or overseas.
With a limited product range, competition within the segments is intense.
Crustaceans and shrimp products do pose a threat to the stability of the fish business.
Fish consumption levels tend to decrease as substitutes catch on.

7.1.6 Logistics (cargo services)
Physical carriers such as articulated trucks and well boats are the primary comparison
points to assess the industry. There are some cases of over-capacity within the industry;
nevertheless, the industry is relatively insignificant to automotive players, as mining and
manufacturing simply count for more. In conclusion, bargaining power of suppliers is fair
here.
Customers within this segment are increasingly applying pressure on logistics providers for
better pricing and modes of services as product differentiation is limited and there are
low penalties for switching. Some of the imminent threats include possible backward
integration from processing companies as cost-effective measures.
Operating within their current business model, achieving economies of scale is tough.
More often than not, providers have to resort to adoption of sophisticated, highly-
customized systems to differentiate themselves from the competition. Difficulty in
achieving economies of scale is a barrier to entry.
Competition revolves around price and services. Potential customers view logistics as
merely a pathway for cost-reduction. This is apparent when companies are operating
with excess capacity, resulting in price cuts. By inference, the competition level is high.
Backward integration is possible as companies are trying to integrate their operations in-
house. However, regardless of the tendency of companies to integrate, few have
managed to pursue integrated management very far up the supply chain. Therefore,
the substitute threat is moderate.

Market attractiveness for aquaculture species
7.2 Market attractiveness for aquaculture species

Based on the GE matrix below, Barramundi and Tiger Grouper are the most attractive
species in the market. Barramundi has the highest survival rate from hatchery to farming
and the shortest period to reach market readiness. Meanwhile, Grouper species are
facing a stumbling block as the Chinese government is imposing trade penalties for an
indefinite period.
Referring to figure 38 below:
 Competitive strength criteria are represented by market price, survival rate, readiness
to market, and cost.
 Market attractiveness is represented by production growth, profit levels, market

diversity, availability of workers, and facilities.
Figure 38 - The GE matrix on market attractiveness for each species

Output figures are as of 2012.

Segments’ drivers and inhibitors
7.3 Segments’ drivers & inhibitors
The table below assesses drivers and inhibitors of each business segment in the value
chain system which will assist investors to better understand development of the industry
in the future.
Table 61 – Segments’ drivers and inhibitors
Segment Drivers Inhibitors
 Indonesia is a maritime country  Limited workforce in the fishery

with a massive potential for industry itself
aquaculture and capability to  Fishermen still prefer
provide broodstock conventional methods of fish
 Indonesian government farming
Hatchery
support to the fishermen on  Wild capture is still preferred by
aquafarming through fishermen.
mariculture research institutes  Lack of proper rearing
and by providing roe and techniques expose newly
juveniles hatched juvenile to diseases
 Diverse methods of
aquaculture indicate excellent  Some marine territories are
adaptability. located near to heavy
 Indonesian aquaculture industries that generate
operations can produce a environmental pollution.
wide range of fish commodities  Limited availability of skilled
Nursery/ workforce.
with established local and
aquafarming  Rudimentary infrastructure in
international markets.
 Excellent marine environmental remote areas hampers
conditions in the country transportability of commodities.
provide a high-quality  Shortfall in proper nourishment
environment conditions for for species used in
aquaculture. aquaculture.
 Higher production of  Higher fuel prices hits

aquaculture industry from year aquaculture hard because of
to year, both for domestic and the increase in transportation
Feed international markets. costs of feed ingredients.
 High dependency on imported
raw materials for fish feeds.
 Precarious electricity supply

Segments’ drivers and inhibitors
 Higher year-to-year production  High dependency on raw

from aquaculture industry, for materials for fish vaccines.
both local and international  Uncertain economic situation
markets. in the country caused high
Vaccine
 Shifting trends in aquaculture inflation rate and fluctuation of
which require vaccine not only the national currency
to treat but to prevent disease. exchange rate.
 Frequent electricity shut-downs
 Development of infrastructure  Level of development of fish

in Indonesia through the MP3EI processing in eastern and
programme western Indonesia remains low
Processing
 Established international  Uncertain regulation on
market for processed fish exported fish commodities
commodities  Inconsistent supply of electricity

Species comparison and attractiveness
7.4 Species comparison and attractiveness

The comparison and appeal analysis of the five primary fish marine commodities is
explained in Table 62. The weaknesses are mostly influenced by fish feed supplies and
high mortality rates caused by lack of feed and diseases.
Table 62 – Species’ drivers and inhibitors
Species Drivers Inhibitors
 High consumption by domestic

Tiger and international markets has  Large appetite increases
driven high profits. feeding cost.
Grouper
 Ready to market with a nine-
month nurturing period.
 High consumption in
international markets,
 Nurturing period of
especially in Southeast Asia. approximately two years.
Humpback  In demand by restaurants and
luxury hotels worldwide.  Meat texture is not suitable for
Grouper processing.
 With a weight range of 500-
1000g per fish, a whole live fish  Low survival rate.
is valued higher than processed
fish.
 Barramundi are opportunistic
predators and indiscriminate
eaters. This greatly simplifies the
process of sourcing feed intake.  Frequently attacked by virus,
 Excellent fecundity rate, bacteria and fungi.
Barramundi increasing the probability of a
 Limited supply of seed in term
fruitful harvesting season.
of quantity and quality.
 As euryhaline organism,
Barramundi can flourish in
water of any level of salinity,
reducing mortality rates.
 A white-meat fish used
extensively in various
international cuisines.  High mortality rate of larvae
Snapper
 Has economic value for both due to deficient feed quality.
consumption and as an
ornamental fish in domestic
and international markets.

Species comparison and attractiveness
 As euryhaline organism,
snapper can flourish in water of
any level of salinity, reducing
mortality rates.
 Pompano is readily farmed

because of a rapid growth
period.  High appetite increases feed
Pompano
 Prefers vegetation, reducing costs.
requirements for pellet feed.
 High-resistance to disease.

Segments’ key success factors and key selling points
7.5 Segments’ key success factors and key selling points

The table below indicates the key success factors and selling points for each business
segment in the aquaculture industry.
Table 63 – Segments’ key success factors and key selling points
Segment Key Success Factor Key Selling Point
 Collection of wild juveniles for  Relative monopolization of the

stock: Hatcheries must be able competitive landscape:
to maintain a balance within Supplier alternatives are few for
the biotope to prevent over- small-scale aquafarmers, thus
exploitation. demand for fish juveniles will
 Hatchery design and remain stable (research
operation: Maintenance of facilities).
biodiversity in essential  Unique product differentiation:
components, including Existing private hatcheries must
quarantine of new fish, be capable of supplying new
Hatchery
disinfection and dry-out juvenile species to gain a
between fingerlings competitive advantage
production, and routine (research facilities).
monitoring of pathogens and  Establishment of reliable and
disease. steady distribution of fish
 Brood stocking activities: juveniles (research facilities).
Organisms should be
transported in dark-colored,
lidded containers with
oxygenated water.
 Fish life-cycle optimization:

 Product range expansion:
More frequent harvesting
Greater selection of alternatives
would provide faster sales
provides opportunities to tap
turnover for the aquafarmers.
into unmet demand (PT Suri Tani
 Sustainability: Environmentally
Pemuka).
responsible aquafarming
 Integrated marketing
Nursery/ operations are more likely to
communication: As the industry
aquafarming enjoy long-term viability.
is offering essentially
 Best Business Practices: Proper
homogenous products, positive
nursing and supplementary
results are heavily dependent
intake positively affect the
on properly executed
overall business linkages driving
marketing campaigns
the entire aquaculture industry.
(Indonesian mariculture).

Segments’ key success factors and key selling points
 Pioneer status: Companies with  Feasibility: Sustainable

first-mover advantage are production guarantees minimal
more likely to dominate market impact on the environment and
Fish share. an assured supply for the
feed  Location selection: Appropriate foreseeable future (PT Suri Tani
operational sites would yield Pemuka)
superior results.
 Standardization: Vaccine is a  Adoption of Safety measures:
mandatory requirement for Compliance to relevant
sustainable aquaculture; systematic preventive
demand for vaccine will approach from physical
always be driven automatically hazards during production
Vaccine to respective providers. processes (PT Bina San Prima).
 Innovation: Business entities  Affordability: Vaccines that are
capable of delivering cutting- financially accessible to various
edge fish-health solutions will levels of relevant stakeholders
obtain significant market are more likely to do well in the
shares. market (PT Bina San Prima).
 Value-added proposition: The  Timeliness: Processing facilities
fish processing segment is are competing to secure
characterized by low product lucrative supermarket
differentiation. By adding value contracts. Timely delivery is the
Processing
into current business portfolios, key to success within this
companies might be able to segment (PT Bonecom).
gain competitive advantage
(e.g. fish skin flaying services)

Segments’ challenges and opportunities
7.6 Segments’ challenges and opportunities

Through the years of development of the aquaculture industry in Indonesia the sector
has faced and still faces challenges in each segment which need to be addressed for
the business to be able to grow. However, considering the highly suitable environmental
conditions and the support of the Indonesian government, the sector is has extensive
opportunity to flourish.
Table 64 - Challenges and opportunities for Indonesian aquaculture
Segment Challenges Opportunity
 Most small-scale farmers utilize  Knowledge of cultivation is still

conventional methods of fish limited among small-scale
farming. Advanced aquafarmers.
technology is implemented
 Supply of domestic fingerlings
only by integrated large-scale
is still reliant on research
companies.
facilities with only a few areas
 Knowledge of hatchlings is still (Bali and West Nusa
limited and depends on Tenggara) capable to
research facilities and, in independently supply their
some areas such as Bali and own requirements.
Nusa Tenggara, independent  Limited numbers of species
farmers. available for cultivation will
open an opportunity for
 Wild capture is preferred due
businesses to develop other
to the lack of knowledge of species. Currently, there are
Hatchery
cultivation. twelve species available for
cultivation in Indonesia.
 Indonesia’s extensive
coastlines provide ideal
conditions for fish farming in
brackish-waters, while lakes
and ponds provide an
abundant resource for
freshwater cultivation.
Saltwater fish farming in
offshore floating cages is an
area that warrants closer
attention. The government has
allocated funds to support
small-scale fish farmers and

has enlisted the help of foreign

companies and organizations
to modernize the sector.
Indonesia’s aquaculture
commodities include various
types of fish, shrimp and
seaweed.
 Live fish such as Groupers  Dependence on supplies from

bear high risks and costs for research facilities for local
transportation. fingerlings. Only farmers in Bali
and Nusa Tenggara are
 Technical and non-technical
capable of producing
constraints occur after
hatchlings and fingerlings.
implementation. For example,
the grow-out period is too  Imported materials are
Nursery/ long for some species such as prioritized when the producer
Grouper. concentrates on production
aquafarming
quality.
 Low quality of domestic
fingerlings produced.  Indonesia has a huge
population spread across the
 Lack of competent farmers: country, and needs qualified
Most small-scale farmers they institutions or organizations to
have no traditions of fish transfer and improve their
cultivation, which affects the knowledge of cultivation.
result.
 Lack of technology affects  Low adoption level of artificial

the feed quality needed for feed.
fish nurturing.
 Indonesia produces many of
 Low usage of artificial feed the materials used for fish feed
Fish feed due to the awareness of the ingredients.
production quality.
 High distribution costs to the

eastern region increases feed
prices.
 Lack of adequate response to  Broad opportunities where

disease outbreaks. vaccine suppliers are still
Fish vaccines limited and dominated by
 High dependency on foreign players.
imported raw material.

 Logistic issues caused by  Rural regions such as eastern

concentration of Indonesia have a deficiency
manufacture in Java, inflating of vaccine supplies, while
the base price of products vaccines suppliers are heavily
from other regions. concentrated in Java.
 Low level of adoption.
 Strict regulation of export  Largest markets for processing

markets. are exports where marine fish
species are dominant for
 Inconsistent supply from
processing.
cultivation farmers, imported
Processing
fish, and fluctuating catches  Eastern areas of Indonesia
have a good environment for
fish ecosystem, stabilizing the
supply.

Primary CSR issues
7.7 Primary CSR issues

Environmental issues in Indonesia stem from the country's high population and rapid
industrialization. These issues are often given a lower priority due to high poverty levels
and lack of resources from the government. In accordance to Government Regulation
No 47/2012, it is mandatory for the companies involved in development and exploitation
of natural resources to establish CSR programme which is directly applicable for
hatchery and nursery/aquafarming sectors. Table 65 explains the primary CSR issues
relevant to Indonesian marine aquaculture.
Table 65 - Primary and relevant CSR issues
Objective Description
 Destruction of mangrove, wetlands, and other sensitive
aquatic habitat by aquaculture projects.
 Conversion of agricultural land to ponds.
 Water pollution resulting from pond effluents.
 Excessive use of drugs, antibiotics, and other chemicals for
aquatic-animal disease control.
 Inefficient utilization of fish meal and other natural resources
for fish and shrimp production.
Environmental and  Salinization of land and water by effluents, seepage, and
social concerns sediment from brackish-water ponds.
 Excessive use of ground water and other freshwater supplies
for filling ponds.
 Spread of aquatic animal diseases from aquaculture
organisms to native populations.
 Negative effects on biodiversity caused by escape of non-
native species introduced for aquaculture, destruction of
birds and other predators, and entrapment of aquatic
organisms in pumps.
 Disputes over land rights and forceful acquisitive of land by
large corporations, marginalizing local small-scale
aquafarming initiatives
 Illegal aquafarming projects due to local people with no
technical knowledge and little capital starting small-scale
Social issues projects without formal permission. Potential for tremendous
damage, comparable to small farming initiatives in tropical
areas
 Conflict with other industries for use of land and water as
passage to fishing areas or mangrove areas which are
needed for fuel production. Also, external factors such as

Primary CSR issues
pollution of waters by farms and a decline in fish populations

could spark conflicts.
 Aquaculture operations have a higher demand for land in
coastal areas, often generating land-use conflicts. This
situation is worsened by hindered usage rights in
underdeveloped countries.
 Water-usage conflicts due to negotiations conducted at the
state government level without the participation of local
governments and citizens who use the waters for recreational
purposes, fishing, or navigation.
 Damaging salinization of fresh water by shrimp farmers near
coastlines.
 Donations of fish brood stock to local artisanal fish growers
and reforestation of abandoned aquafarming installations.
Reforestation is crucial to preserving coastal ecosystems from
potential contamination.
 Deployment of waste-management vessels to safeguard
environmental quality.
 Collaboration with educational institutions for provision of
Possible
technical guidelines in aquaculture knowledge
CSR activities
dissemination.
 Free medical facilities for improving the overall welfare of the
surrounding communities (in proximity to the company’s
operational sites).
 Local infrastructure construction such as schools, religious
structures, and police posts as an expression of long-term
corporate concern for the social environment.

Funding for market entry initiatives
7.8 Funding for market entry initiatives

Indonesia welcomes foreign investment on its own terms. Government policies aim to
ensure that foreigners work with Indonesians to assist in the development of the national
economy and technology. To this end, Indonesia partners with several international
funding institutions. The table below lists institutions that provide funding for market entry.
Table 66 - Relevant funding for market entry initiatives
Organization Background
World Bank is a vital source of financial and technical

assistance to developing countries around the world,
providing low-interest loans, interest-free credits, and
World Bank grants to developing countries. These support a wide
array of investments in such areas as education, health,
public administration, infrastructure, financial and
private sector development, agriculture, and
environmental and natural resource management
Founded in 1966, ADB has been driven by an inspiration
and dedication to improving people’s lives in Asia and
the Pacific through investment in infrastructure, health-
care services, financial and public administration
Asian Development Bank systems, or helping nations prepare for the impact of
climate change or better manage their natural
resources. ADB is committed to helping developing
member countries evolve into thriving, modern
economies that are well-integrated with each other
and the world
Islamic Development Bank is an international financial
institution established in pursuance of the Declaration of
Intent issued by the Conference of Finance Ministers of
Muslim Countries held in Jeddah in Dhul Q'adah 1393H
(December 1973) with the main functions being to
Islamic Development Bank participate in equity capital and grant loans for
productive projects and enterprises besides providing
financial assistance to member countries in other forms
for economic and social development. The Bank is also
required to establish and operate special funds for
specific purposes including a fund for assistance to
Muslim communities in non-member countries, in

Funding for market entry initiatives
addition to setting up trust funds. The Bank is authorized

to accept deposits and to mobilize financial resources
through Sharia-compatible modes. It is also charged
with the responsibility of assisting in the promotion
of foreign trade especially in capital goods, among
member countries
Indonesia Investment Established in 2007 as a provider of government
Agency investment positioned under the Minister of Finance.
The Netherlands Development Finance Company
(FMO) supports the private sector in developing
countries and emerging markets in Asia, Africa, Latin
America and the Caribbean and Europe and Central
FMO Asia. FMO provides loans, participation, guarantees and
other investment promotion activities. The goal is to
contribute to the structural and sustainable economic
growth in these countries and, together with the private
sector, obtain healthy returns. These returns make FMO
a valuable risk partner.
Oikocredit is one of the world’s largest sources of private
Oikocredit funding that provides credit and equity across the
developing world and directly to trade cooperatives
and fair-trade organizations.

Recommendations
7.9 Recommendations
Main Recommendation
Objectives Action Item
 Northern Bali (Bali), Jeneponto (Makassar) and

Inner Ambon Bay (Ambon) are recommended as
“hotspot areas” to conduct aquaculture activities
due to their nutrient-rich waters and relatively
pristine environment.
Focusing on Eastern part of
Indonesia  Utilize scout services provided by research facilities
to pinpoint prospective aquaculture spots.
 As wild-capture operations still dominate in

recommended areas it is crucial for the
prospective investors to gauge general public
acceptance of aquafarming. This would be useful
when recruiting the workforce.
 Tiger Grouper and Barramundi are the most

attractive species in the aquaculture business in
Indonesia due to their market value, survival rate,
Tiger Grouper and Barramundi and readiness to market, production growth, and
as prioritized species profit level.
 Acclimatization to local conditions, especially

regarding appropriate technologies, is paramount.
For example, farming pens should avoid using
tarpaulin-based materials as it will allow the fish,
especially Barramundi, to escape.
 The value chain system in the Indonesia

aquaculture industry is not fully independent. The
hatchery segment remains reliant on the Research
Backward or forward business Institute for Mariculture for supplies of juveniles.
integration
 Based on prevailing conditions, it is recommended
that Norwegian companies avoid converging into
a single segment since profitability would be
problematic.
 Business ventures in integrated segments would

Recommendations
have to be consolidated by intensive outreach

and education (seminars, annual publications,
trainings) which, in return, would enhance the
adoption level of relevant stakeholders.
 For ease of accessibility, identify partners that will

allow the project to efficiently reach large numbers
of micro-, small- and medium-enterprises (MSME) in
the value chain. This can be accomplished
through associations, NGO, governments, banks,
and community groups.
 For enhanced market awareness and productivity,

build a collaboration initiative with existing co-ops
Partnership with local and launch a public platform for intelligence
farmers/companies sharing among the relevant stakeholders. This
would enable streamlining of information and
might reduce the risks of a bullwhip effect across
the value chain.
 Foster the use of PPP in fisheries and aquaculture

development as a major pathway for investment in
production and sector-related services, such as
hatcheries, feed production, advisory services and
marketing in the form of institutional arrangements.

Recommendations
Recommendation per business segment
Segment Objective Action Item
 Focus on eastern regions of Indonesia such as

Northern Bali (Bali), Lombok Timur (Lombok),
Target location Jeneponto (Makassar) and Inner Ambon Bay
(Ambon) in consideration of supportive factors
such as a pristine environment, skilled farmers
(workforces) and adequate infrastructure.
 Humpback Groupers, Tiger Groupers and

Barramundi are the most important fish species
cultured in Indonesia. Humpback Grouper,
Tiger Grouper and Barramundi farming have
proven profitable and contemporary research
is concentrated on these species.
 Norwegian companies should invest in

research to acquire more knowledge about
Species suitable feeds, vaccine and aquaculture
methods for these commodities in order to
Hatchery devise applicable practices for Indonesian
aquafarmers.
 Extensive research into promising species in the

Indonesian mariculture sector, such as Yellow-
fin Tuna and Tilapia Zilli, would be a viable
investment for Norwegian companies wishing
to expand their business.
Market entry  Enter as a joint venture or consortium

strategy according to the profit-sharing policies of the
relevant companies.
 Although there is considerable technical

Type of
expertise within the mariculture research
programme in
system, there is still a substantial unmet need in-
improving
house technical capacity in marine fisheries,
hatchery in
social-economics and fisheries technology to
Indonesia
support optimum development of the sector

Recommendations
 Environment and infrastructure are the primary

criterion for cultivation. The eastern region
remains a promising area for entering this
segment due to its excellent environmental
Target location conditions and developing infrastructure,
although it is not fully up-to-speed.
 Norwegian companies could initiate

operations in Inner Ambon Bay, North of Bali or
Jeneponto.
 Focus on developing Tiger Grouper and

Barramundi as stand-out species.
 More detailed study on the optimal methods of

aquaculture for Tiger Grouper and Barramundi
Species
Nursery/ (e.g. type of equipment).
aquafarming  Extensive research into aquaculture cultivation

method for upcoming species in the
Indonesian mariculture sector such as Yellow-fin
Tuna and Tilapia Zilli.
Market entry
 Joint venture or consortium is favored when
strategy
risk/reward sharing is the common objective.
 Norwegian companies could support and

contribute significantly to government
institutions in order to strengthen a long-term
approach to human resources development
Type of and training.
programme in
improving  Develop diversified coastal systems for smaller-
nursery/ scale production, with cooperative support
aquafarming in (training and knowledge transfer).
Indonesia
 Technical inputs regarding fish feed and
vaccines are needed to prevent diseases, the
predominant issues affecting the Indonesian
aquaculture industry.

Recommendations
 Focusing on central (Java) and eastern regions

(Makassar).
 By approaching local players in the two areas

Target location in order to cover the whole market in the
country. Java will be the trading hub on the
central and western regions, while Makassar
could cover the aquaculture business in the
eastern regions.
 Fish feed in Indonesia is used in a uniform

manner regardless of species. Cases of
incompatibilities have occurred on several
Species occasions, signaling the necessity for
prospective market entrants to come up with
species-specific feed for effective growing-out
Fish feed (e.g. distinct feed type between Barramundi
and Grouper).
Market entry  Licensing or joint venture as direct penetration

strategy is not viable with the existing oligopoly market
structure.
 Waste reduction strategies:

 Reduction of wastage through better
management and monitoring of feeding.
 Approaches including maximizing the bio-
viability of feed components through
Type of research and trialing, as well as better feed-
programmes for delivery management using computer-
improving fish controlled, centralized feeding systems.
feeds in  Environmental monitoring:
Indonesia  Intermittent monitoring of the water column
will also provide information on the levels of
feed utilization, wastage, and impact form
aquaculture systems.

Recommendations
 Focusing on Central (Java) and eastern regions

(Makassar)
 By approaching local players in the two areas

in order to cover the whole market in the
Target location
country. Java will be the trading hub on the
central and western regions, while Makassar
could cover the aquaculture business in the
eastern regions.
 Put a greater emphasis on battling the

following diseases:
o KHD (KHV), Grouper Iridoviral Disease

(Iridovirus), Streptococciasis (S. iniae and
S.agalactiae), Motile Aeromonas
Septicemia (Aeromonas hydrophila),
Fish vaccines Vibriosis (Vibrio sp.), Edwardsiliosis
Species
(Edwardsiela ictaluri) , Mycobacteriosis
(Mycobacterium fortuitum) , Viral
Nervous Necrocis (VNN)/VER), IMN
(Infectious Myonecrosis Virus), WSD
(White Spot Syndrome Virus), TS (Taura
Syndrome Virus) ,IHHN (Infectious
Hypodermal Haematopoietic Necrosis
Virus)
Market entry  Licensing as entry option to operate against

strategy the competition (Blue Ocean Strategy).
 Provide knowledge transfer to improve

awareness of the necessity of applying
vaccines in aquaculture business. The objective
Type of
has to be anticipative rather than focusing on
programme in
recovery measures.
improving fish
vaccines in
 Feasible short courses and training should be
Indonesia
carried out in the country, while specialized
courses may be conducted in cooperation
with national institutions.

Recommendations
 Aceh, Bali, Makassar and Papua are the main

targets for fish-processing businesses in
Target location Indonesia due to their high production
capacity and requirements for processing the
commodities
 In order to obtain considerable profit in

processing industry, individual companies
Species
should not limit their portfolio to one or two
species.
Processing
Market entry  Joint venture or contract manufacturing to
strategy adapt to the mature industry.
 Find or merge with existing local firms for

partnership. Forging a partnership enables the
processing companies to diversify into
aquaculture commodities which might require
Potential
different handling methods. Notable
partnership
companies are: PT Lucky Samudera, PT Kelola
players
Mina Laut and PT Bonecom.
 Partnering with local fisherman and collectors

to maintain fish commodities supply.

Appendices
Appendices

Appendices
List of Indonesian mariculture knowledge institutions
1. BBPBAP Jepara (Research Institute of Brackish-water)

 Address : Jl. Cik Lanang Bulu Jepara Central Java
 Phone : +62 (91) 591125, 591724
 Main commodities : Tiger Prawn, Vanname, Mud Crab, Seaweed, Grouper
2. BBAP Ujung Batee (Brackish-water Aquaculture Development Centre)

 Address : Jl. Laksamana Malahayati Km 16 Aceh Besar - NAD
 Phone : +62 (651) 24686
 Main commodities : Tiger Prawn, Shrimp Lamboh, Grouper, Milkfish
3. BADC Situbondo (Brackish-water Aquaculture Development Centre)

 Address : Jl. Raya Pecaron Panarukan Situbondo East Java
 Phone : +62 (338) 673328, 390043, 390255
 Main commodities : Grouper, Milkfish, Vaname shrimp, Abalone, Seaweed
4. BBAP Takalar (Brackish-water Aquaculture Development Centre)

 Address : Desa Bontoloe, Galesong Selatan Takalar South Sulawesi
 Phone : +62 (418) 320730, 2326777
 Main commodities : Seaweed, Tiger Prawn, Grouper
5. BBPBL Lampung (Main Centre of Mariculture Development)

 Address : Desa Hanura Padang Cermin Teluk Betung Lampung Selatan
 Phone : +62 (721) 471380, 471379
 Main commodities : Grouper, Asian Sea bass, Ornamental Fish
6. BBL Batam (Mariculture Development Centre)

 Address : Jembatan 3 Barelang Pulau Setoko Bulang Kota Batam
 Phone : +62 (778) 7027624, 323764
 Main commodities : Pompano, Asian Sea bass, Grouper, Abalone.
7. BBL Lombok (Mariculture Development Centre)

 Address : Desa Gili Genting West Nusa Tenggara
 Phone : +62 (370) 6608290
 Main commodities : Abalone, Seaweed.
8. BBL Ambon (Mariculture Development Centre)

 Address : Jl. Leo Wattimena Waih Ambon
 Phone : +62 (911) 362047
 Main commodities : Grouper, Pearl oyster, Seaweed, Lobster, Crab
9. BLUPPB Karawang (Research Institute of Fish Culture Business)

 Address : Desa Pusaka Jaya Utara Cilebar Karawang
 Phone : +62 (267) 7009797
 Main commodities : Vaname, eel, milkfish, tilapia, catfish, tiger grouper

Appendices
10. Loka of Fish Disease Examination & Environment Serang

 Address : Jl. Raya Carita Desa Umbul Tanjung Cinangka Serang
 Phone : +62 (254) 650431
 Main commodities :-
11. BBRP Budidaya Air Laut Gondol (Research Institute of Mariculture)

 Address : Jl. Br Gondol Kec Gerogak, Kab. Buleleng, Singaraja, Bali
 Phone : +62 (362) 92278
 Main commodities : Mariculture species
12. Balai Besar Riset Pengolahan Produk, Bioteknologi, Sosial Ekonomi Kelautan dan Perikanan
(Marine Products, Biotech, and Social Economics Research Institute)
 Address : Jalan KS Tubun Petamburan VI, Slipi, Jakarta Pusat, Indonesia
 Phone : +62 (21) 53650157
 Main commodities : Research on Aqua Commodities and Processing
13. Balai Riset Perikanan Air Payau (Brackish-water Mariculture Institute)

 Address : Jalan Makmur Daeng Sittaka, Maros, South Sulawesi
 Phone : +62 (411) 371544
 Main commodities : Research on Brackish-water Commodities

Appendices
List of integrated aquaculture players in Indonesia
1. PT. Central Proteina Prima.

 Address : Wisma GKBI Lt.19 Jl. Jendral Sudirman No.28 Jakarta 10210
 Phone : +62 (21) 57851788
 Fax : +62 (21) 57851808
 Website : www.cpp.co.id
 Main business : Integrated fish and shrimp producer and processor, feeds and probiotics.
2. PT. Japfa Comfeed Indonesia.

 Address : Wisma Millenia Lt.7 Jl. MT Haryono Kav.16 Jakarta 12810
 Phone : +62 (21) 28545680
 Fax : +62 (21) 8310309
 Website : www.japfacomfeed.co.id
 Main business : Integrated shrimp producers, feed and vaccines.
3. PT. Aquafarm Nusantara.

 Address : Jl. Sei Bingei 36 Desa Naga Kisar, Kecamatan Pantai Semin, Deli Serdang
 Phone : +62 (21) 6627658
 Fax :-
 Website : www.aquafarmnusantara.blogspot.com
 Main business : Integrated Tilapia farm (processed and frozen fish)
4. PT. Fega Marikultura.

 Address : Jatake Indust. Estate Bk. C No.5 Jl. Industri 2 Jatake Tangerang, Banten
 Phone : +62 (21) 5901538
 Fax : +62 (21) 5901916
 Website : www.bestbarramundi.com
 Main business : Integrated aquaculture company (hatchery, sea farm, processing and
marine fin fish feed mill
5. PT. Indonesia Mariculture Industries.

 Address : Jl. Suwiryo No.1 Menteng Jakarta Indonesia
 Phone : +62 (21) 3900880
 Fax :-
 Website : www.indomarind.com
 Main business : Integrated aquaculture company
6. CV. Dewata Laut.

 Address : Dusun Penyabangan Buleleng Bali
 Phone : +62 8123800201
 Fax :-
 Website : www.dewatalaut.com
 Main Business : Integrated Hatcheries

Appendices
7. Bali Samudera Harvest.

 Address : Sumberkima Village North Bali
 Phone :-
 Fax :-
 Website : www.balisamudraharvest.com
 Main Business : Integrated aquaculture
8. Kawan Abadi Aquaculture.

 Address : Gondol Singaraja Bali
 Phone : +6281236339169
 Fax :-
 Website : www.balisamudraharvest.com
 Main Business : Integrated hatcheries

Appendices
List of equipment companies in Indonesia
List of equipment companies in Indonesia
1. PT. Aquatic Indonesia

 Address : Kawasan Industri Batujajar Permai Jl. Raya Batujajar Km 2.8 Padalarang
Bandung West Java Indonesia
 Phone : +62 (22) 6864016
 Fax : +62 (22) 6864015
 Website : www.aquatec.co.id
 Main business : cultivation equipment
2. PT. Batam Usaha Marikultur

 Address : Sentra Bisnis Tanjung Duren Blok B No.3A Jl. Tanjung Duren 1/38 West
Jakarta Indonesia
 Phone : +62 (21) 5636115
 Fax :-
 Website : www.duniaperikanan.com
 Main business : Cultivation equipment

Appendices
List of vaccines players in Indonesia
List of vaccine players in Indonesia
1. PT. Intervet Indonesia.

 Address : Gedung S Widjojo Lt.3 Jl. Jend Sudirman Kav.71 Jakarta
 Phone : +62 (21) 5206220, 2524185
 Fax : +62 (21) 5206221
 Website :-
 Main Business : Vaccines for Barramundi, Groupers and Tilapia
 Products : Norvac Strep-Si, AquavacTM Ga Rvetil Oral, Himmvac Agilban S-Plus,
AquavacTM Strep Sa, Aquavac Irido V
2. PT. Caprifarmindo Laboratories.

 Address : Jl. Purnawarman No.47 Bandung
 Phone : +62 (22) 4207725
 Fax : +62 (22) 4222928
 Website : www.caprifarmindo.com
 Main Business : Vaccines
 Products : Caprivac Aero L, Caprivac Aero, Caprivac Vibrio L, Caprivac Vibrio,
Caprivac ICTA.
3. PT. Indovetraco Makmur Abadi.

 Address : Maspion Plaza 9th Floor Jl. Gunung Sahari Raya Kav.18 Jakarta
 Phone : +62 (21) 64701200
 Fax : +62 (21) 64700967, 64701137
 Website : www.ima.co.id
 Main Business : Animal health (feed additive, drug & vitamin, vaccine)
 Products : Coccidiostat, growth promotor, milk replacer, toxin binder, mold inhibitor,
larvacide, anthelmitic, pellet binder, antimicrobial, anti-oxidant, volvac ae+fp mlv, volvac
nd+ib mass mlv, volvac nd lasota, volvac lt mlv, bursaplex.
4. PT. Behn Meyer Chemicals.

 Address : Taman Tekno BSD Blok B No.1 Sektor IX Tangerang Indonesia
 Phone : +62 (21) 7565000
 Fax : +62 (21) 7560860, 7560870
 Website : www.behnmeyer.com
 Main Business : Animal health
 Products : enzymes, finase, finase EC, wheatease, hemicell, hemicell w.
5. PT. SHS International.

 Address : Maspion Plaza 11th floor Jl. Gunung Sahari Raya Kav.18 Jakarta Indonesia
 Phone : +62 (21) 64701200
 Fax : +62 (21) 64700968, 64701257
 Website : www.shs.co.id
 Product : bird close 5.1 plus, coryza bivalent, nobilis coryza, nobilis gumboro
228e,nobilis gumboro D78, nobilis IB 4/91, nobilis IB multi+G+ND.

Appendices
List of vaccines players in Indonesia
6. PT. Wonderindo Pharmatama.

 Address : Jl. Tebet Barat IX No.27 South Jakarta Indonesia
 Phone : +62 (21) 8297666
 Fax : +62 (21) 8302080
 Website : www.wonderindo.com
 Products : Lactagen, potahormon, metritin injeksi, ovaluman injeksi, oxytocin,
dexatozon, sulpyrine.
7. PT. Pyridam Farma

 Address : Jl. Kemandoran 8 No.16 Jakarta Indonesia
 Phone : +62 (21) 53690112
 Fax : +62 (21) 5329049
 Website : www.pyridam.com
 Products : datan forte, nogren, potensik, ferospat, nizol tablet, lodipas, arkine,
levazide, ostepr, xotilon.
8. PT. Petrokimia Kayaku

 Address : Jl. Jenderal Ahmad Yani Gresik East Java Indonesia
 Phone : +62 (31) 3981811, 3982100, 3982200
 Fax : +62 (31) 3981722, 3982272
 Website : www.petrokimia-gresik.com
 Main Business : Animal probiotic
 Products : probiotic petro fish

Appendices
List of fish feed players in Indonesia
1. PT. Cargill Indonesia.

 Address : Wisma 46 BNI Lt.28 Jl. Jend Sudirman Kav.1 Jakarta
 Phone : +62 (21) 5746868
 Fax : +62 (21) 5745757
 Website : www.cargill.co.id
 Main Business : Feed mill, feed additive
2. PT. Trouw Nutrition Indonesia.

 Address : Jl. Pulau Selayar Kawasan Industri MM2100 BI A 3/2 Cibitung-Bekasi
 Phone : +62 (21) 89983325, 89983326, 89983358, 89983360
 Fax :-
 Website : www.trouwnutrition.com
 Main Business : Feed mill
3. PT. Wonokoyo Jaya Corporindo.

 Address : Jl. Taman Bungkul No.1-7 Surabaya
 Phone : +62 (31) 2956000
 Fax : +62 (31) 5679655
 Website : www.wonokoyo.co.id
4. PT. Matahari Sakti.

 Address : Margomulyo Industri I Blok A10-13 Surabaya,
 Phone : +62 (31) 7491199
 Fax : +62 (31) 7490545
 Website : www.mataharisakti.com
5. PT. Mitra Manggalindo

 Address : Jl. Muara Baru Ujung Blok N Kav. 3-4 Jakarta
 Phone : +62 (21) 6682077
 Fax : +62 (21) 6621578
 Website : www.manggalindo.com
6. PT. Cheil Jedang Superfeed

 Address : Jl. Jend Gatot Subroto Kav.38 Ged. Menara Jamsostek 21st Floor, Jkt 12170
 Phone : +62 (21) 52995000
 Fax :-
 Website : www.cj.co.id
 Main business : Animal feed
7. PT. Wonokoyo Jaya Kusuma

 Address : Jl. Taman Bungkul No.1-7 Surabaya East Java
 Phone : +62 (31) 2956000
 Fax : +62 (31) 5679655
 Website : www.wonokoyo.co.id

Appendices
8. PT. Sinta Prima Feedmill

 Address : Jl. Sulaiman No.27A Slipi West Jakarta Indonesia
 Phone : +62 (21) 5480959
 Fax : +62 (21) 5493313
 Website : www.sintafeed.com
9. PT. Matahari Sakti

 Address : Margomulyo Industry 1 Blok A10-13 Surabaya 60183 East Java Indonesia
 Phone : +62 (31) 7491199
 Fax : +62 (31) 7490545
 Website : www.mataharisakti.com
10. PT. Gold Coin Indonesia

 Address : Jl. Raya Bekasi Km.28 Desa Medan Satria Bekasi 17132 West Java
Indonesia
 Phone : +62 (21) 8842445
 Fax : +62 (21) 8841061
 Website : www.goldcoin-group.com

Appendices
List of processing companies in Indonesia
1. PT. Fresh On Time Seafood.

 Address : Jl. Raya Narogong Km 26.5 Kawasan Industri Kembang Kuning Kec. Klapa
Nunggal Bogor West Java 16820.
 Phone : +62 (21) 8233817
 Fax : +62 (21) 8233806
 Website : www.freshontime.com
 Main business : Integrated seafood processor
2. PT. Sekar Bumi.

 Address : Plaza Asia Floor 2A Jl. Jend Sudirman Kav 59 Jakarta Selatan
 Phone : +62 (21) 51401212
 Fax :-
 Website : www.sekarbumi.com
 Main Business : Producer and seafood processor
3. PT. Lucky Samudra Pratama.

 Address : Jl. Muara Baru Ujung Blok F No.1 Jakarta 14440
 Phone : +62 (21) 6623275
 Fax : +62 (21) 6623276
 Website : www.luckysamudra.com
 Main Business : Seafood processor
4. PT. Indomaguro Tunas Unggul.

 Address : Jakarta Fishing Port Jl Muara Baru Ujung Blok G/1-2 Jakarta 14440
 Phone : +62 (21) 29263588
 Fax : +62 (21) 29263577
 Website : www.indomaguro.co.id
5. PT.Phillips Seafood Indonesia.

 Address : Jl. Ir Sutami Desa Sindang Tanjung Bintang Lampung
 Phone : +62 (721) 350441
 Fax : +62 (721) 350 442
 Website : www.phillipsseafood.com
6. PT. Sukses Lautan Indonesia.

 Address : Jl. Indrapura Baru 351 Surabaya
 Phone : +62 (31) 3555260
 Fax : +62 (31) 3532735
 Website : www.sulindo.com

Appendices
7. PT. Kelola Mina Laut.

 Address : Jl. K.I.G Raya Selatan Kav. C-5 Kawasan Industri Gresik 61121 Surabaya
 Phone : +62 (31) 3976351-53
 Fax : +62 (31) 3976350
 Website : www.kmlseafood.com
8. PT. Dharma Samudera Fishing Industries.

 Address : Jl. Laks. R.E Martadinata I, Tanjung Priok, Jakarta 14310, Indonesia
 Phone : +62 (31) 4301001, 4300156
 Fax : +62 (31) 4303412
 Website : www.dharmasamudera.co.id
9. PT. Bone Commercial Company.

 Address : Jl. Muara Baru Ujung Blok L No.1 Jakarta 14440
 Phone : +62 (21) 351318, 351319, 351320
 Fax : +62 (21) 350018
 Website : www.bonecom.com
 Main business : Integrated fishery company (seafood processing)
10. PT. Inti Luhur Fuja Abadi.

 Address : Graha Famili N-169 Surabaya
 Phone : +62 (31) 70606638
 Fax : +62 (31) 7346781
 Website : www.ilufaseafood.com
 Main Business : Seafood processors
11. PT. Prima Pangan Madani.

 Address : Komplek Ruko Sutera Renata Jl. Jalur Sutera Timur 6A No.20 Alam Sutera
Tangerang
 Phone : +62 (31) 70606638
 Fax : +62 (31) 7346781
 Website : www.madanifood.com
 Main Business : Seafood processors
12. PT. Indokom Samudera Persada.

 Address : Jl. Ir. Sutami Km.13 Bandar Lampung Indonesia
 Phone : +62 (721) 350837-838
 Fax : +62 (721) 350839
 Website : www.seafood.indokom.co.id
 Main Business : Seafood Processor
13. UD. Nagata Tuna

 Address : Cot Aron 2 No.2 Punge Banda Aceh
 Phone : +62 (651) 43149, +6281360023712, +6282164636000
 Fax :-
 Website :-
 Main Business : Fish processor

Appendices
14. PT. Prima Bahari Inti Lestari

 Address : Jl. Kima 12 Kav. 5C Makassar South Sulawesi Indonesia
 Phone : +62 (411) 512688
 Fax : +62 (411) 514163
 Website : www.primabahari.com
15. PT. Sumina Esktrasindo

 Address : Desa Cupel, Pelabuhan Pengambengan, Negara Bali Indonesia
 Phone : +62 (365) 44150
 Fax : +62 (365) 42185
 Website : www.ptsumina.com
16. CV. Bali Omega

 Address : Desa Cupel, Pelabuhan Pengambengan, Negara Bali Indonesia
 Phone : +62 (365) 42494
 Fax :-
 Website : www.baliomega.indonetwork.co.id
17. PT. Balinusa Windumas

 Address : Jl Ikan Tuna 2 Pelabuhan Perikanan Benoa Bali Indonesia
 Phone : +62 (361) 722688, 722091
 Fax : +62 (361) 723636, 725160
 Website : www.balinusawindumas.com
18. PT. Sari Segara Utama

 Address : Pelabuhan Perikanan Benoa Bali Indonesia
 Phone : +62 (361) 720853
 Fax : +62 (361) 720695
 Website : www.ptsarisegarautama.blogspot.com
19. PT. Nusantara Fishery

 Address : Jl. Kate Kate Desa Hunud Durian Patah Ambon Indonesia
 Phone : +62 (911) 3825158
 Fax :-
 Website :-
20. PT. Arabikatama Fishing Industries

 Address : Komplek TNI AU Ambon Indonesia
 Phone : +62811471382
 Fax :-
 Website :-

Appendices
21. PT. Mabiru Industries

 Address : Jl. Kakialy No.5 Tanah Tinggi Ambon Maluku Indonesia
 Phone : +62 (911) 344405
 Fax : +62 (911) 314308
 Website :-
22. PT. Bumi Menara Internusa

 Address : Jl. Margomulyo 4E Tandes Surabaya East Java Indonesia
 Phone : +62 (31) 7491000, 7481700, 70989168
 Fax :-
 Website : www.ptbmi.com
23. PT. Aneka Tuna Indonesia

 Address : Jl. Surabaya Malang Km 38 Gempol East Java Indonesia
 Phone : +62 (343) 851361
 Fax : +62 (343) 851361
 Website : www.tunaindonesia.com
 Main Business : Tuna processor
24. PT. Mega Marine Pride

 Address : Desa Wonokoyo Kecamatan Beji Pasuruan East Java Indonesia
 Phone : +62 (343) 656513, 656446
 Fax : +62 (343) 656195
 Website : www.megamarinepride.com
25. PT. Surya Alam Tunggal

 Address : Jl. Raya Tropodo No.126 Waru Sidoarjo East Java Indonesia
 Phone : +62 (31) 8667575
 Fax : +62 (31) 8667500
 Website : www.pt-sat.com
26. PT. Varia Niaga Nusantara

 Address : Dusun Dermo Desa Gunung Gangsir No.88 Pasuruan East Java Indonesia
 Phone : +62 (343) 655243
 Fax : +62 (343) 655244
 Website : www.vaninus.com
27. PT. Sukses Lautan Indonesia

 Address : Pelabuhan Tanjung Tembaga Barat Probolinggo East Java Indonesia
 Phone : +62 (31) 83281333
 Fax : +62 (31) 7316801
 Website : www.sulindo.com

Appendices
28. PT. Alam Jaya

 Address : Jl. Rungkut Industri 2 No.25 Surabaya East Java Indonesia
 Phone : +62 (31) 8495811
 Fax : +62 (31) 8496167
 Website : www.alamjayaseafood.com
29. PT. Pratama Abadi Gemilang

 Address : Jl. Kendangsari No.18 Surabaya East Java Indonesia
 Phone : +62 (31) 8433615
 Fax : +62 (31) 8431103
 Website : www.titanifood.com
30. PT. Tridaya Jaya Manunggal

 Address : Rembang Industri Raya 36, PIER Pasuruan East Java Indonesia
 Phone : +62 (343) 740399
 Fax : +62 (343) 740439
 Website : www.tridayaj.com
31. PT. Samudera Kencana Mina

 Address : Central Square E31 Jl. Ahmad Yani 41-43 Gedangan Sidoarjo East Java
Indonesia
 Phone : +62 (31) 8547202, 70394664
 Fax : +62 (31) 8547196
 Website : www.skmseafood.com
32. PT. Bali Maya Permai

 Address : Jl. Pluit Raya No.19 Block D No.1-2 Jakarta Indonesia
 Phone : +62 (21) 66600055
 Fax : +62 (21) 66605999
 Website : www.bmpfood.co.id
33. PT. Prasetya Agung Cahaya Utama

 Address : Jl. A Yani I Dusun Carik Padang Desa Nyambu Tabanan Bali Indonesia
 Phone : +62 (361) 812828, 812830
 Fax : +62 (361) 812857
 Website : www.blessingfish.com
34. PT. Wahyu Pradana Binamulia

 Address : Jl. Kima Raya 1D-2C Kawasan Industri Makassar South Sulawesi Indonesia
 Phone : +62 (411) 510256
 Fax : +62 (411) 512975
 Website : www.wahyupb.com

Appendices
35. PT. Kemilau Bintang Timur

 Address : Jl. Kima 3 Kav.2 A Kawasan Industri Makassar South Sulawesi Indonesia
 Phone : +62 (411) 512808
 Fax : +62 (411) 513000
 Website : www.ktbseafood.com
36. PT. Bogatama Marinusa

 Address : Jl. Kima Raya 2 Kav.N4 B1 Makassar Indonesia
 Phone : +62 (411) 513378
 Fax : +62 (411) 513373
 Website : www.bomarfood.com
37. PT. Toba Surimi Industries

 Address : Jl. Pulau Pinang 2 Kawasan Industri Medan 2 Deli Serdang, Medan
 Phone : +62 (61) 6871022
 Fax : +62 (61) 6871007
 Website : www.tobasurimi.com
38. PT. Lautan Niaga Jaya

 Address : Jl. Muara Baru Ujung Blok B 168 Jakarta Indonesia
 Phone : +62 (21) 66691965, 6614154, 6617874
 Fax : +62 (21) 6619641
 Website : www.lautanniagajaya.com
39. PT. Red Ribbon Indonesia

 Address : Jl. K. Lyos Sudarso Km 10.5 Medan Industrial Estate, Medan
 Phone : +62 (61) 6851924, 6851350
 Fax : +62 (61) 6851137
 Website : www.redribbonindonesia.com
40. PT. Nusantara Alam Bahari

 Address : Kawasan Pelabuhan Perikanan Samudera Nizam Zachman Blok S No.6
N. Jakarta
 Phone : +62 (21) 6611061
 Fax : +62 (21) 6694637
 Website : www.nalambahari.com

2014.06.29 IN Jakarta - Value Chain Analysis of Marine Fish Aquaculture in Indonesia PDF

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2014.06.29 IN Jakarta - Value Chain Analysis of Marine Fish Aquaculture in Indonesia PDF

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2014

Value Chain Analysis of

1. Research methodology and objectives ......................................................................... 11

3.4 “Minapolitan” system as an unique approach to aquaculture................................. 39

3.6 Workforce availability ................................................................................................... 44

6. Regulatory, policy and investment environment .......................................................... 95

6.3 Ownership structure for aquafarming and processing.............................................. 101

6.4 Foreign investment framework .................................................................................... 102

7. Analysis and recommendations..................................................................................... 111

7.2 Market attractiveness for aquaculture species ......................................................... 118

BADC Brackish-water Aquaculture Development Centre

BFT Biofloc Technology

BKPM Indonesia Investment Coordinating Board

BMKG Board of Meteorology, Climatology and Geophysical

BPOM Indonesian Drug & Food Agency

CAGR Compound Annual Growth Rate

CCRF Code of Conduct for Responsible Fisheries

CDS Catch Document Scheme

CTI Coral Triangle Initiative

CV Limited Liability Partnership

DGP Good Distribution Practices

DNI Negative Investment List

FCR Feed Conversion Ratio

GAP Good Aquaculture Practices

GHDP Good Handling Practices

GLP Good Laboratory Practice

GMP Good Manufacturing Practices

HACCP Hazard Analysis Critical Control Point

IUT Permanent Business Permit

Juklak Implementation Guidelines

KBLI Indonesian Standard Industrial Classification

KHV Koi Herpes Virus

MCMD Main Centre for Mariculture Development

MDC Mariculture Development Centre

MMAF Ministry of Marine Affairs and Fisheries

Master Plan programme for Acceleration and Expansion of Indonesia

MSME Micro, Small, Medium Enterprise

NACA Network of Aquaculture Centres in Asia Pacific

NPWP Tax Registration Code Number

Pedum General Guidelines

PMA Foreign Investment Company

Indonesian government programme concerned with increasing

Indonesian government programme concerned with rehabilitation of

Indonesia government programme that concerned with increasing

PT Limited Liability Company

RIM Research Institute for Mariculture

RPIPM Investment Recommendation for Fish Culture

SIKPI Fish Ship Transporter Permit

SSOP Standard Sanitation Operating Procedure

TAC Total Allowable Catches

TPT Technical Support Officer

UPI Fishery Processing Unit

UPP Development Service Unit

USAID United States Agency for International Development

UUD Constitution of Indonesia

WCPFC Western and Central Pacific Fisheries Committee

1. Research methodology and objectives

Objective Methodology Outcome

Primary and secondary

Identify value chain

2. Summary and analytical outcomes

Indonesia is well-known as the largest archipelago on earth, consisting of more than

Hot spot parameters included: Current production output; environmental conditions