Aquaculture in Indonesia

Institut für Weltwirtschaft
Verbundprojekt WTZ Indonesien
SYSMAR – Marine Aquakultur in Indonesien
Nachtrag: Aquakultur in Indonesien
Aquaculture in Indonesia
Report on the Aquaculture Industry in Indonesia
Annisa Indah Sari
Forschungsvorhaben 03F0469B
Projektträger Jülich
Forschungszentrum Jülich GmbH
Sachbericht
Teil A des Zwischennachweises
Kiel, November 2010
1
Contents
Chapter 1. Introduction ........................................................................................ 5
1. 1. Background ................................................................................................... 5
1. 2. Geographical condition .................................................................................. 6
Chapter 2. The existing condition of fishery sector in Indonesia .................... 7
2. 1 History of fishery sector in Indonesia ............................................................. 7
2. 2 Potential of fisheries resource utilization ....................................................... 9
2. 3 Position of fisheries in national economics .................................................. 11
2. 4 The structure of fisheries activities .............................................................. 15
Chapter 3. Indonesian aquaculture .................................................................. 19
3. 1 Opportunity to develop aquaculture ............................................................. 19
3. 2 Trend in aquaculture development .............................................................. 22
3. 3 Current issues in Indonesian aquaculture ................................................... 26
4.3.1 Marine aquaculture ............................................................................... 26
4.3.2 Brackishwater culture............................................................................ 29
4.3.3 Freshwater culture ................................................................................ 31
3. 4 Organization of aquaculture in Indonesia .................................................... 34
4.4.1 Policy on Aquaculture ........................................................................... 34
4.4.2 Ministry of Marine Affairs and Fisheries ................................................ 36
Chapter 4. Further discussion in mariculture .................................................. 39
4. 1 Problems in the development of mariculture ............................................... 39
4. 2 Structure of mariculture in Indonesia ........................................................... 41
4. 3 An example: marine aquaculture in Bali ...................................................... 49
4. 4 An example: organization of mariculture in Gondol, Bali ............................. 50
4. 5 Strategies for mariculture in Indonesia ........................................................ 51
4.5.1 Public and private sector rules .............................................................. 51
4.5.2 Environmental sustainability ................................................................. 52
4.5.3 Knowledge and human capacity building .............................................. 52
2
4.5.4 Economic growth and investment ......................................................... 53
4.5.5 Strengthening of coastal zone management ......................................... 53
List of Figure
Figure 1.1 Map of distribution Fisheries Management Area (11 FMA) ....................... 6
Figure 2.1 Fish Production in Indonesia from 1950 until 2008 .................................... 8
Figure 2.2 The location of fisheries potency based on FMA ....................................... 9
Figure 2.3 Gross domestic product of Indonesia in billion rupiah (2000 – 2007) ...... 12
Figure 2.4 The trade of Indonesian fisheries product from 2002 – 2007 in thousand
US $ ......................................................................................................................... 13
Figure 2.5 Scheme of fishery activities in Indonesia ................................................. 15
Figure 2.6 Sub activities of fishery sector in Indonesia ............................................. 15
Figure 2.7 The structure of fish supply in Indonesia based on total fish production in
ton ............................................................................................................................ 16
Figure 3.1The percentage of potential areas of aquaculture .................................... 20
Figure 3.2 Trend of aquaculture production based on areas (2001-2007)................ 23
Figure 3.3 Inland Aquaculture production based on top ten species in 2007 (ton) ... 24
Figure 3.4 Number of aquaculture establishment (unit) ............................................ 25
Figure 3.5 Map of Aquaculture Fisheries Production Distribution 2007 .................... 26
Figure 3.6 Aquaculture production based on media of water (2007 -2009) .............. 27
Figure 3.7 Indonesian marine aquaculture economic fishes ..................................... 28
Figure 3.8 Brackishwater culture production based on main commodity in 2009 (ton)
................................................................................................................................. 29
Figure 3.9 Indonesian brackishwater economic fishes ............................................. 30
Figure 3.10 Freshwater culture production based on main commodity in 2009 (ton) 32
3
Figure 3.11 Indonesian freshwater economic fishes ................................................. 33
Figure 3.12 Indonesian freshwater economic ornamental fishes .............................. 34
List of Table
Table 2.1 Potecy, production and utilization of fiheries in Indonesia ........................ 10
Table 2.2 Position of fisheries in Indonesia‟s national economics ............................ 14
Table 2.3 The structure of fish supply in Indonesia based on total fish production in
ton ............................................................................................................................ 16
Table 2.4 Fishery production by type disposition (Ton) ........................................... 17
Table 2.5 Fisheries economy in Indonesia from 2002 until 2007 .............................. 17
Table 2.6 Index of fish consumption in Indonesia (2001-2006) ................................ 18
Table 3.1Total potency of Indonesian aquaculture areas and the utilization in 2007 19
Table 3.2 The estimation of economic value of sea aquaculture .............................. 20
Table 3.3 Trend in Sea Aquaculture production based on species (ton) .................. 23
Table 3.4 Number of aquaculture establishments (unit) ........................................... 25
Table 3.5 Aquaculture production based on media of water (2007 -2009) ............... 27
Table 3.6 Marine aquaculture production based on main commodity ....................... 27
Table 3.7 Brackish culture production based on main commodity ............................ 30
Table 3.8 The freshwater production based on culture type (ton)............................. 31
Table 3.9 Freshwater culture production based on main commodity ........................ 32
4
Chapter 1. Introduction
1. 1. Background
The worldwide demand for fish and fishery products has increased steadily in recent
years. In 2030 the world demand of seafood will reach 183 million tons or 95 million
tons higher than the amount consumed in 1995 (Ye, 1999). This phenomenon is
related to the basic need of protein, population increase and changing the
consumption behavior especially in the higher incomes countries, which, aiming at
healthier nutrition. The share of fish in total protein intake increased overtime as
much 6.1% in 1996 (FAO 2001).
The result from SOFIA project (2008) by FAO, show that over 25% of all the world‟s
fish stocks are either overexploited or depleted. Another 52% is fully exploited. The
90% of large predatory stocks are already gone. In Indonesia, overfishing has
occurred on the Java Sea, the Malaka strait and Karimata strait. This year, there is
also a big possibility of Arafura Sea experienced overfishing (Solihin, 2009) (Fig. 1.1).
The term of overfishing distinguish into two aspects; growth overfishing, where
catches are poor because too many fish are caught before making optimum growth
but requirement of young fish is not seriously affected. There may also recruitment
overfishing when the stock fails through depressed intake of recruits resulting from a
reduction in the number of spawners (R. V. Tait and F. A. Dipper, 1968). Extensive
fishing practices have resulted in overfishing and environmental deterioration of the
ocean especially as a major threat to the global marine ecology. Therefore, the
development of aquaculture is recognized as one of policy instruments to provide the
increase demand for fishery products. Aquaculture activities drove the growth in
world fish production in the 1990s and will continue to be the main driver in the
future. Rapid development of worldwide aquaculture production increased
significantly since mid 1980. The annual average rate is 10% and it grows rapidly
attaining 65.2 million tons in 2007.
This report is identified an existing condition of fishery sector in general, current

issues in aquaculture and discussed further about mariculture. The term of
aquaculture in this report defined from the media of water that distinguished by its
salinity; (i) marine aquaculture; (ii) brackishwater culture; and (iii) freshwater culture.
Freshwater culture consist four types; floating net, cage, pond and paddy field.
Whereas the term mariculture is defined as all cultures that farmed in coastal areas.
5
1. 2. Geographical condition
The large of marine territory in Indonesia is 62% of the total area, extending 5.100
kilometers on the Equator, between two large oceans, the Pacific and Indian Oceans.
The water bodies divided into marine zone and inland openwater. The large of
maritime zone is 5.8 million km2, consist of archipelagic waters, territorial seas, and
Exclusive Economic Zones. Whereas the inland openwater area is 5.4 million ha that
consist lake and reservoir 3.9%; swamp 71.6%; riverine 22.1% (Indonesian Fishery
Book 2009). The management of maritime zone is divided into 11 Fishery
Management Area (FMA). (Fig. 1.1) (Ministerial Decree No. PER. 01/MEN/2009
about Fisheries Management Area of Republic of Indonesia, 21 January 2009,
MMAF 2009a).
Figure 1.1 Map of distribution Fisheries Management Area (11 FMA)
FMA 571 : Malaka Strait – Andaman Sea

FMA 572 : Indian Ocean (West of Sumatera) – Sunda Strait
FMA 573 : Indian Ocean (South of Java) – South of Nusa Tenggara – Sawu Sea –
West of Timor Sea
FMA 711 : Karimata Strait – Natuna Island – South China Sea
FMA 712 : Java Sea
FMA 713 : Makassar Strait – Bone Bay – Flores Sea – Bali Sea
FMA 714 : Tolo Bay – Bunda Sea
FMA 715 : Tomini Bay – Maluku Sea – Halmahera Sea – Seram Sea – Berau Bay
FMA 716 : Sulawesi Sea – North of Halmahera
FMA 717 : Cendrawasih Bay – Pasific Ocean
FMA 718 : Aru Sea – Arafura Sea – East of Timor Sea
6
Chapter 2. The existing condition of fishery sector in Indonesia
2. 1 History of fishery sector in Indonesia

Essentially Indonesia was a maritime nation. It proved from the history where the
empires of Sriwijaya and Majapahit were a coastal trading centre within South-east
Asia islands that ruled from 7th until 13rd century. They had a philosophy of living with
and from the sea. In the middle of 16th century, the Netherlands ruled Indonesian
maritime territory by eliminating the essence as a maritime nation through a cultural
approach. This background history had influenced the idea of a development
orientation in the New Order era (1965 – 1998) that more concentrated to the land
whereas marine and fishery sector barely touched.
In fact, Indonesia is the largest archipelagic state in the world (Munawwar and
Munavvar, 1995) which has 18,306 islands, 81,000 km coastline or 14% of coastline
in the world, and also large of marine aquatic area (Ministry of Marine Affairs and
Fisheries). At that time, the management of marine resources had controlled
separately by different institutions that made them difficult to manage through
uncoordinated management plans and overlapping policies. After a New Order era
collapsed, in 1999 an appointed President at that time underlines a new formation of
marine management under one institution, later it called Ministry of Marine Affairs
and Fishery (MMAF). The main aim of MMAF is to make Indonesia as the biggest
marine and fishery producer in 2015. As an economic prime mover, marine and
fishery sector is expected to improve the welfare society especially fishermen and
fish farmers who statically live under poverty. Based on data from the Indonesian
Statistics Bureau (ISB) in 2009, poor people in Indonesia reached 32.53 million and
about 60% of them live in coastal areas.
In the period 2005 until 2008, the MMAF has accomplished some achievements, as
followed; (i) pro-poor achievement which means improving the coastal communities
income; (ii) pro-job achievement namely increasing the job absorption that reached
7.69 million people; and (iii) pro-growth achievement that increase the growth of
marine and fisheries sector as much 5.7%. (MMAF, 2009b). These achievements
also can be seen from several indicators, such as the increasing of fishery production
from 6.8 million tons in 2005 to 8.8 million tons in 2008 (Food and Agriculture
Organization of the United Nations/FAO 2010a) (Fig. 2.1).
7
Figure 2.1 Fish Production in Indonesia from 1950 until 2008
Source: FAO. © 2004-2010. Fishery and Aquaculture Country profiles. Indonesia - Fishery
Production Statistics. Fishery and Aquaculture Country Profiles.
In: FAO Fisheries and Aquaculture Department [online]. Rome.
[Cited 4 November 2010]. http://www.fao.org/fishery/countrysector/FI-CP_ID/3/en].
Indonesia has become one of the leading fisheries nations in Asia and ranks as a
major exporting country in the world seafood industry. The major goal of the
Indonesian government is to diversify the export industry away from hydrocarbons.
The Indonesian economy has been drawing heavily on exports of energy resources
(oil and gas). In 1981, minerals accounted for 83.6 percent of the value of
Indonesia‟s exports (highest export share of minerals of ASEAN countries (Mckern
and Koomsup, 1988)).
Indonesia is the fourth largest producer of capture fish in the world as a result of
huge natural diversity which comprises 25,000 of 28,540 species existing in the
world. Profits in this sector are around US$ 15.1 million per year. Besides that, there
are also huge potentials for aquaculture, inland open water fisheries and the
development of marine biotechnology. Recently the biotechnology is set as a priority
in the field of science and technology. The development is still in the stage of
research where the potency is about 4 billion US$ per year (Rokhmin Dahuri, 2004)
8
2. 2 Potential of fisheries resource utilization
The potential capacity of fish production in Indonesia yields around 6.4 million tons
per year. Table 2.1 shows the potency, production and utilization of fisheries based
on FMA. The red block indicates no potential development, means that the utilization
is more than 100%; the white block indicates small potential development where the
utilization is almost reached the maximum, range from 70.7% until 99.8%; and the
green block indicates potential development where the utilization ranges from 2.5%
until 68%.
Figure 2.2 The location of fisheries potency based on FMA

I : FMA 571 - Malaka Strait – Andaman Sea
II : FMA 711 - Karimata Strait – Natuna Island – South China Sea
III : FMA 712 - Java Sea
IV : FMA 713 - Makassar Strait – Bone Bay – Flores Sea – Bali Sea
V : FMA 714 - Tolo Bay – Bunda Sea
VI : FMA 715 and FMA 716 - Tomini Bay – Maluku Sea – Halmahera Sea – Seram Sea – Berau
Bay and Sulawesi Sea – North of Halmahera
VII : FMA 717 - Cendrawasih Bay – Pasific Ocean
VIII : FMA 718 - Aru Sea – Arafura Sea – East of Timor Sea
IX : FMA 572 and FMA 573 - Indian Ocean (West of Sumatera) – Sunda Strait and Indian Ocean
(South of Java) – South of Nusa Tenggara – Sawu Sea – West of Timor Sea
Source: MMAF 2005
9
Table 2.1 Potecy, production and utilization of fiheries in Indonesia
based on Fisheries Management Area
Group of Fishery Management Area
%
resources I II III IV V VI VII VIII XI
Large Pelagic
Potency
3 27.67 66.08 55.00 193.60 104.12 106.51 175.26 50.86 386.26 18.2
(10 ton/year)
Production
3 35.27 35.16 137.82 85.10 29.10 - - 34.55 188.28
(10 ton/year)
Utilization (%) >100 53.21 >100 43.96 27.95 >100 >100 67.93 48.74
Small Pelagic
Potency
3 147.30 621.50 340.00 605.44 132.00 379.44 384.75 468.66 526.57 56.2
(10 ton/year)
Production
3 132.70 - 507.53 333.35 146.47 119.43 62.45 12.31 264.56
(10 ton/year)
Utilization (%) 90.15 >100 >100 55.06 >100 31.48 16.23 2.63 50.21
Demersal
Potency
3 82.40 334.80 375.20 87.20 9.32 83.84 54.86 202.34 135.13 21.3
(10 ton/year)
Production
3 146.23 54.69 334.92 167.38 43.20 32.14 15.31 - 134.83
(10 ton/year)
Utilization (%) >100 16.34 89.26 >100 >100 38.33 27.91 >100 99.78
Corl fish consumption
Potency 2.3
3 5.00 21.57 9.50 34.10 32.10 12.50 14.50 3.10 12.88
(10 ton/year)
Production
3 21.60 7.88 48.24 24.11 6.22 4.63 2.21 22.58 19.42
(10 ton/year)
Utilization (%) >100 36.53 >100 70.70 19.38 37.04 15.24 >100 >100
Schrimp Penaeid*
Potency 1.5
3 11.40 10.00 11.40 4.80 0.00 0.90 2.50 43.10 10.70
(10 ton/year)
Production
3 49.46 70.51 52.86 36.91 0.00 1.11 2.18 - 10.24
(10 ton/year)
Utilization (%) >100 >100 >100 >100 0.00 >100 87.20 >100 95.70
Lobster
Potency 0.1
3 0.40 0.40 0.50 0.70 0.40 0.30 0.40 0.10 1.60
(10 ton/year)
Production
3 0.87 1.24 0.93 0.65 0.01 0.02 0.04 0.16 0.16
(10 ton/year)
Utilization (%) >100 >100 >100 92.86 2.50 6.67 10.00 >100 10.00
Squid
Potency 0.4
3 1.86 2.70 5.04 3.88 0.05 7.13 0.45 3.39 3.75
(10 ton/year)
Production
3 3.15 4.89 12.11 7.95 3.48 2.85 1.49 0.30 6.29
(10 ton/year)
Utilization (%) >100 >100 >100 >100 >100 39.97 >100 8.85 >100
Source: Prof. Dr. Rokhmin Dahuri, 2004 updated with the data from (MMAF 2009c).
*using data from 2004
Pelagic fish play an important role in Indonesian fisheries; 74.1% of total fish stock,
or 4,771,020 ton/year. The potency consists large pelagic 18.1% and small pelagic
56% (Table 2.1). The major catch share consists of small pelagic fishes (selar
bentong [Selar crumenopthalmus, or bigeye scad], banyar [Rastreliger kanagurta, or
striped mackerel], tenggiri [Scromberomenus comersonii, or barred Spanish
10
mackerel]), and large pelagic fishes (tongkol [Euthynnus s pp., or coastal tuna/frigate
tuna]). The potency pelagic fish, distributed in almost FMA which shown in Figure
2.2. The great potency of large pelagic is in zone IX (FMA 572 and 573) that located
in Indian Ocean (West of Sumatera) – Sunda Strait and Indian Ocean (South of
Java) – South of Nusa Tenggara – Sawu Sea – West of Timor Sea. Whereas the
great potency for small pelagic is in zone II (FMA 711) as much 621.500 ton/year,
that have been utilized 33.07%.
Another potency is a demersal fish as 21.2% of total fish stock or 1,365,090 ton/year
which the average utilization is 72.1%. Demersal fish is a fish that feeds on or near
the bottom of the ocean or a deep lake in the demersal zone. Examples include
some species of catfish, such as the members of the genus Corydoras, snapper, eel,
grouper and bass. By using data 2004, the potency of shrimp is almost over exploited
in all FMA. But in data 2009, shrimp could be explored again in FMA 711. It means
that within five years, the fish stock was recovered. Other fisheries potency is lobster
and squid that contribute 0.1% and 0.4% of total live stock.
The growing demand and expanding fish farming enterprises put pressure on the
capture fisheries activities. The interaction between aquaculture and wild fish comes
with the seed and feed caught in the wild (Fig. 2.5). Overexploited wild fish stocks
(see red blocks in Table 2.1) make it rather difficult to increase trash fish catch as a
source of fish for feed. Special focus, when trying to expand the aquaculture industry,
must be given to the conservation of wild fish stocks, in order to secure the
sustainable yield.
2. 3 Position of fisheries in national economics
Gross domestic product (GDP) from 2000 until 2007 is used to perceive the position
of fisheries in national economics. Within 8 years, the average of fisheries only
contributes 2.3% of the total GDP with the growth rate 28.5% (Table 2.2). Meanwhile,
the agriculture, forestry and livestock contribute as much 9.8%, 1%, and 1.8% (Fig.
2.3). The GDP contribution is dominated by manufacturing industry as 26.4% (using
data of GDP at current price by industrial origin in period 2004-2009, ISCB
(Indonesian Statistics Central Bureau) 2010)).
11
Figure 2.3 Gross domestic product of Indonesia in billion rupiah (2000 – 2007)
Source: (1) Statistical Yearbook of Indonesia 2003, 2004, 2008 (Statistics Indonesia) (2) Marine and
Fishery Statistics 2005, 2006, 2008 (Ministry of Marine Affairs and Fisheries) . (MMAF & JICA 2007).
These aggregate statistics only illustrate the contribution of capture fishery that
understate the real contribution of fishing industry to the national economics. There
are two fundamental reasons for this. The first is that there are a number of economic
activities closely linked to the fishing industry but not part of it. These comprise the
production input to the fishing industry, the so-called „backward linkages‟, and the
various secondary uses of fish products, the so-called „forward linkages‟ (Arnason,
1994). The backward linkages include activities such as ship building and
maintenance, fishing gear production, the production of fishing industry equipment
and machinery, the fish packaging industry, fishery research, and education. The
forward linkages comprise the transport of fish products, the production of animal
feed from fish products, the marketing of fish products, and retailing of fish products.
According to Arnason (1994), these backward and forward linkages may add at least
a quarter to the direct GDP contribution of the fishing industry.
Comparing with other countries, the contribution of fishery sector in Indonesia is

relatively still low. In instance for United States with the potential of marine
biodiversity is much lower compared to Indonesia, in 2004, could generate GDP from
fishery sector as US$ 11,815 billion while in 2005 Indonesia generated as US$ 287.2
billion (FAO 2005).
12
Another example is in Vietnam fishery sector in 2006 contributed 25.5% to GDP,
accounting 9.5% from capture fishery and 16% from aquaculture (UN ESCAP 2007).
Figure 2.4 The trade of Indonesian fisheries product from 2002 – 2007 in thousand US $
Source: (1) Statistical Yearbook of Indonesia 2003, 2004, 2008 (Statistics Indonesia) (2) Marine and
Fishery Statistics 2005, 2006, 2008 (Ministry of Marine Affairs and Fisheries) (MMAF & JICA 2007)
Figure 2.4 show that fisheries have contributed substantially to foreign earnings, in
the sense that export value is greater than import value. In addition, the export value
tends to increase while the import value tends to fall. The growth rate in fisheries
exports was really fast.
The export of fisheries product in Indonesia was about 0.57 million MT in 2002 to
about 0.85 million MT in 2007 as the annual average is 10.57% or as much
1,822,149 thousand US $ in average. The growth in fisheries exports, especially in
terms of volume, is still dominated by the two commodities shrimp/prawn and
tuna/mackerel. Shrimp supplied mostly from aquaculture and tuna is from fish
capture activity. The import of fisheries product was 0.12 million MT in 2002 to 0.15
million MT in 2007, that fluctuated around the annual average of 4.99%.
13
Table 2.2 Position of fisheries in Indonesia’s national economics
YEAR
CATEGORY UNIT
2000 2001 2002 2003 2004 2005 2006 2007
Billion
Gross Domestic Product*
Rupiah 3,957,404
National 1,264,919 1,467,655 1,821,833 2,013,675 2,295,826 2,774,281 3,339,480
547,236
Agriculture,Fishery,Foresty,Livestock 217,898 244,722 281,591 305,784 329,125 364,169 433,223
Agriculture 146,406 163,437 189,249 204,403 215,189 237,765 277,748 352,584
Fishery 29,510 35,221 40,305 45,612 53,011 59,639 74,335 96,822
35,734
Foresty 14,948 15,597 17,602 18,415 20,290 22,562 30,066
Livestock 27,035 30,467 34,435 37,354 40,635 44,203 51,075 62,096
National Product Index 100 100 104.27 107.68 113.56 117.34 118.85 116.92 123.44
Number of Employee by sector Person
20,279
Agriculture 51,185 24,680 18,008 19,851 19,851 20,265 19,610
Fisheries 6,963 5,115 5,583 6,053 6,973 7,565 8,152 9,185
Export Value Thousand

US $ 21,257,215
Agriculture - - - 7,536,242 9,887,593 11,584,429 14,863,221
Fisheries - - 1,478,041 1,552,734 1,626,802 1,912,926 2,103,471 2,258,920
Thousand
Import Value
US $ 8,397,854
Agriculture - - - 4,540,614 3,027,755 5,136,916 5,961,331
Fisheries - - 92,312 90,808 154,032 126,960 165,720 142,750
* At current prices. Source: (1) Statistical Yearbook of Indonesia 2003, 2004, 2008 (Statistics Indonesia) (2) Marine and Fishery Statistics 2005, 2006, 2008 (Ministry
of Marine Affairs and Fisheries) (MMAF & JICA 2007)
14
2. 4 The structure of fisheries activities
The fishery activities in Indonesia generally comprise three activities; fishing, fish
farming and fishery product processing industry and their sub activities (Fig. 2.6).
Those three activities are connecting each other, where fish farming obtains input of
wild fish from fishing activities and fish product processing industry also need input of
fresh fish from both fishing and fish farming (Fig. 2.5).
Activity 1 Activity 2 Activity 3
Fishing Aquaculture Fishery product

processing
industry
Fresh fish
Wild fish Fresh fish
Figure 2.5 Scheme of fishery activities in Indonesia
FISH FARMING/ FISHERY

FISHING PRODUCT
AQUACULTURE PROCESSING
INDUSTRY
Marine Marine Boiled

Fishery Aquaculture
Smoked
Inland Brackishwater
Fishery Pond Canning
Freshwater Fermentation
Pond
Fish Meal
Floating Net
Frozen
CAGE Salted
Paddy Others
Field
Figure 2.6 Sub activities of fishery sector in Indonesia
15
Table 2.3 The structure of fish supply in Indonesia based on total fish production in ton
Year
ITEM
2001 2002 2003 2004 2005 2006 2007
Total (Ton) 5,353,472 5,515,648 5,915,988 6,119,731 6,869,543 7,488,708 8,238,302
Sea
3,966,480 4,073,506 4,383,103 4,320,241 4,408,499 4,512,191 4,734,280
capture
Inland
310,240 304,989 308,693 330,880 297,370 293,921 310,457
capture
Total
4,276,720 4,378,495 4,691,796 4,651,121 4,705,869 4,806,112 5,044,737
capture
Sea
221,010 234,859 249,242 420,919 890,074 1,365,918 1,509,528
aquaculture
Inland
855,742 902,294 974,950 1,047,691 1,273,600 1,316,678 1,684,037
aquaculture
Total
1,076,752 1,137,153 1,224,192 1,468,610 2,163,674 2,682,596 3,193,565
aquaculture
Source: (1) Statistical Yearbook of Indonesia 2003, 2004, 2008 (Statistics Indonesia), (2) Marine and
Fishery Statistics 2005, 2006, 2008 (Ministry of Marine Affairs and Fisheries) (MMAF and JICA 2007).
Figure 2.7 The structure of fish supply in Indonesia based on total fish production in ton
Fish production during period 2000 – 2007 increased in all sectors except for the
inland capture fishery which showed a small decline with annual growth rate as
minus 0.4%. There is a significant increasing in sea aquaculture as much 1,312,414
ton during 8 years. Overall the fish suppy in Indonesia is provided by sea capture
with the growth rate 4.1% and shared 66.8% of total production. In the other hand,
inland aquaculture, sea aquaculture and inland capture provide 17.7%, 10.8%, and
4.7% to fish supply (Table 2.3 and Fig.2.7).
16
Table 2.4 Fishery production by type disposition (Ton)
Year Share
ITEM
2001 2002 2003 2004 2005 2006 2007 (%)
Total 4,203,241 4,299,619 4,586,415 4,613,352 4,653,335 4,758,423 5,002,899

Boiled 168,142 165,104 163,573 157,953 124,798 152,596 164,759 3.29
Canning 49,837 66,333 49,637 63,309 72,715 57,893 63,160 1.26
Fermentation 82,081 36,952 40,108 52,867 47,595 47,860 37,611 0.75
Fish meal 21,099 48,415 33,751 18,592 28,625 48,563 59,774 1.19
Fresh 2,469,944 2,545,664 2,600,841 2,686,923 2,706,518 2,775,627 3,046,591 60.90
Frozen 432,888 378,433 614,351 694,841 780,842 785,153 759,819 15.19
Salted/Dried 910,347 979,272 989,761 835,931 765,380 766,529 761,584 15.22
Smoke 68,903 79,446 94,393 102,936 126,862 124,202 109,601 2.19
Others 73,479 78,876 105,381 37,869 52,534 47,689 41,838 0.84
Source: Marine and Fishery Statistics 2005, 2008, Ministry of Marine Affairs and Fisheries. (MMAF
and JICA 2007).
Table 2.4 describes the fishery production from capture fisheries and aquaculture in
ton by type of disposition for human consumption. While in this context, disposition
refers to a term that used to account for the catch and culture as it is used for various
types of processing.
The disposition of fishery production in Indonesia is still dominated by fresh fish as

60.90% and 30.4% stored as frozen fish and dried fish. Only a small deposition
produced in to industry processing such as boiled, canning, fish meal, fermentation
and smoke. Nevertheless the growth rate of the production of fish meal during 2001
until 2007 is high that reached 26.2%.
Table 2.5 Fisheries economy in Indonesia from 2002 until 2007
ITEM Year
2002 2003 2004 2005 2006 2007
Firm (unit)
- - 756 767 - -
Household
(unit) 2,060,790 2,188,818 2,405,688 2,366,159 2,379,412 2,297,257
During period 2002 until 2007, fisheries economy in Indonesia dominated by the
households only, where just small number of firm existed in year 2004 and 2005.
(Table 2.5). Fisheries directly employed 5.8 million people in 2004 where 3.4 million
17
are fishermen and 2.4 million are fish farmers. During 2000 until 2004, the number of
fishermen increased 2.59% per year while fish farmers increased 2.97% per year.
The indirect employ from fisheries could be at least twice that number.
The index per capita of fish consumption in Table 2.6 is categorized into two types;
Domestic Consumption is an index based on data of fish capture production and
product of export and import; Aquaculture consumption is based on aquaculture
production. The domestic consumption growth 1.3%, it is predicted to have a
constant growth as a result of a relatively constant of fish capture production. In the
other hand the growth of aquaculture production is 4.9% which considered along with
the increasing aquaculture production.
Table 2.6 Index of fish consumption in Indonesia (2001-2006)
2001 2002 2003 2004 2005 2006

Domestic
Consumption/Capita 19.24 19.53 20.64 20.34 20.39 20.54
(Kg/Yr)
Aquaculture
3.40 3.51 3.68 3.72 4.35 4.31
Consumption/Capita
Total
Consumption/Capita 22.64 23.04 24.32 24.06 24.74 24.86
(Kg/Yr)
Total Population
208 211 214 216 219 222
(Million)
Source: processed from various sources.
Comparing with other neighboring countries fish consumption in Indonesia is still low,
where in Singapore it reached until 70 kg/year, Malaysia 30 kg, Filipina 40 kg,
Hongkong 80 kg, Taiwan 65 kg and South Korea 60 kg (Harian Pikiran Rakyat 2009).
18
Chapter 3. Indonesian aquaculture
3. 1 Opportunity to develop aquaculture
Indonesia is the fourth longest coastline in the world with a length of 95,181 km (WRI
2003) that has a large amount of potential resources to develop sea aquaculture.
According to Rusila Noor, et al. (1999), Indonesia has the largest mangrove forest in
the world which rich in biodiversity. It has potency to develop brackish aquaculture
like shrimp farming, because the mangrove area has clay texture, water resistant,
and also contain natural food (Widigdo, 2000). The relatively stable water
temperature typical of tropical areas enables aquaculture to be carried out throughout
the year. The varied typology of the land and coastal areas enables the development
of a wide variety of aquaculture commodities. Some areas which have a climate with
low precipitation, long hours of sunlight and high light intensity, usually characterized
by barren lands, are particularly suitable for fish seed production. Groups of small
islands around larger islands can provide shelter from waves and be used as havens
for the development of aquaculture (Nurdjana, 2006).
Currently, Indonesia is the 3rd largest aquaculture producer in the world after China
and India (MMAF, 2007) that reached production 4.5 million ton in 2009. The
production still has potency to increase until 353% in 2014 which expected reach
production 15 million ton.
Table 3.1Total potency of Indonesian aquaculture areas and the utilization in 2007
Total potential areas*) Total used areas Utilization
Aquaculture areas
(Ha) (ha) (%)
Total 11,806,392 762,320 6.46
Marine aquaculture 8,363,501 84,481 1.01
Brackishwater culture 1,224,076 452,901 37.00
Freshwater culture 2,218,815 224,937 10.14
- Ponds 541,100 105,127 19.43
- Open water 139,336 1,491 1.07
- Paddy field 1,538,379 118,320 7.69
Note: *) Based on Revitalization of Aquaculture 2005-2009, published in 2005.
Source: Processed data from DG of Aquaculture , Ministry of Marine Affairs and Fishery, 2008
In Indonesia, the term of aquaculture areas consist of 3 different areas as they are
explained in Table 3.1. They are distinguished based on the media of water with
19
certain salinity. Marine aquaculture could be conducted in both offshore and inshore
while brackishwater is farmed in estuarine. Freshwater culture runs in; open water
such as lake, reservoir/basin, lake and swamp; fresh water pond; and paddy field.
The Indonesian archipelago has tropical characteristics with different precipitation
intensity. The western part of Indonesia has precipitation of more than 2000 mm/y
with longer rainy season and lower solar radiation. The Eastern part of Indonesia is
rich with solar radiation, lower precipitation and shorter periods of rainy seasons. The
western part is more suitable for brackish water aquaculture while the eastern part is
more suitable for marine aquaculture.
Figure 3.1The percentage of potential areas of aquaculture
Figure 3.1 demonstrates that marine aquaculture has the largest potential areas but
in contrary the utilization is only 1.01% which is the smallest share among other
cultures. The economic value estimation from marine aquaculture alone reached
about 567 million US$ which comprise seaweed, pearl, fish and shell (Table 3.2).
Table 3.2 The estimation of economic value of sea aquaculture
Maximum
sustainable Price Economic
Marine aquaculture yield (US$/ton) value (US$)
(ton)
Seaweed 482.400 450 217.080.000
Fish and shell 46.000 5.000 230.000.000
Pearl 3 40.000.000 120.000.000
Total 528.403 1.073 567.080.000
Source: Rokhmin Dahuri, 2001
20
The compatible area for seaweed, pearl and abalone cultivation are in the eastern
region of Indonesia together with Nusa Tenggara and Maluku. The prospective
production area in that zone is around 1.11 million ha. The other region of Sulawesi,
Maluku and Papua which occupy bottom sandy substrate (2.28 million ha) and clay
(333,000 ha) are potentially well designed for grouper and sea cucumber culture.
Indonesia has the world‟s largest brackish water pond area, and its shrimp production
consists of 9.4 % in Asia (Rosenberry, 1998). Brackishwater culture is the most
widely practiced in Indonesia that already utilized as much 37% where the potency is
yield around 10 billion US$ per year. The large estuarine areas with clay bed
substrates of approximately 2.95 million ha stretch in the west of Indonesia that
potentially can be developed for sea bass and bivalves cultures. Other potency is
freshwater culture with economic value estimation is about 5.2 billion US$ per year
(MMAF, 2005).
Generally, the utilization of aquaculture in Indonesia is relatively still low only 6.46%.
It means there is a great chance to develop this activity. Besides that, there is also a
great demand for fish product. According to Joel et al, demand of fish has been
fuelled by population growth and a greater concentration of people in coastal
settlements; nearly 40% of the world‟s population now lives within 100 km of the sea.
Moreover, the rising income has stimulated greater consumption of higher-value
seafood products, such as shellfish and salmon (Matthews and Hammond, 1999).
In conjunction with increasing world population, the demand of aquatic production is
presumably also rise. The boosting development can be occurred because of several
factors such as:
a. Change of habit in the civilization, which consider fisheries product as healthy
food to consume. Due to rich nutrition, low cholesterol, and contain unsaturated
fatty acid omega 3 which can enhance human‟s intelligence.
b. Consumption mass impact from globalization responsible to demanding
internationally accepted food products. They must be acknowledged without any
boundary for instance age, religion and citizenship. Fishery product can fulfill all of
these criteria.
c. Rapid development of cosmetics, pharmacy product, food and beverages which
originate from aquatic organism.
21
There are two sources of demands; from national consumption and from export
market. There is an increasing of total national consumption fish from 22.46 kg in
2001 to 30.17 kg in 2009 with annual growth 3.8%. It is reached the FAO standard;
30 kg/year. The increasing is also seen due to the continuing population growth as
1.2%. In 2014, the MMAF target a national fish consumption increased to 38.67
kg/year. In Indonesia fisheries play an important role in enhancing food security since
fish is generally consumed by poor households.
The world per capita fish consumption has been increasing steadily, from an average
of 9.9 kg in the 1960s to 11.5 kg in the 1970s, 12.5 kg in the 1980s, 14.4 kg in the
1990s and reaching 16.4 kg in 2005 (FAO 2008). The fish consumption in developed
countries increased from 22.3 kg in 1970 to 26.1 kg in 1990. Western Europe is the
main fish consuming region among developed countries with a per caput fish
consumption of 22.2 kg.
The average fish per capita consumption in Southeast Asian countries is about 30
kg/year while the world average of fish consumption is only 16.4 kg/year (FAO 2007).
This indicates that a very important market for fish exists in the region itself. As an
addition Indonesia has an advantage in the term of geographical location that close
to the markets within Asia-Pacific. The major markets for Indonesian fisheries
products are Japan (25%), Singapore (13%), USA (11 %), Hongkong (7%), China
(4%), and Thailand (4%) (FAO 2007).
3. 2 Trend in aquaculture development
Aquaculture is a growing sector in Indonesia during the last six years, from a
production 1.1 million ton in 2001 to 3.2 million ton in 2007. The sector grew at an
average annual rate of 28% (Table 2.3). In this sub chapter, the development of
aquaculture explained based on areas; sea aquaculture and inland aquaculture.
The inland aquaculture developed first which had much higher quantity production
than sea aquaculture. But in 2006 the sea aquaculture catch up the production, that
was 1,4 million ton and inland aquaculture was 1,3 million ton. The sea aquaculture
grows significantly with annual rate 111% during eight years (2000 – 2007). Inland
aquaculture also shows positive growth rate as much 18.5% (Fig 3.2).
22
The value of aquaculture production rose from IDR 12.36 trillion in the year 2001 to
IDR 21.45 trillion in 2005, an average increase of 14.85 percent per year. The
highest average annual growth rate in terms of value was 32.94 percent in fixed cage
culture.
Figure 3.2 Trend of aquaculture production based on areas (2001-2007)

Fishery Statistics 2005, 2006, 2008 (Ministry of Marine Affairs and Fisheries) (MMAF & JICA 2007).
Table 3.3 Trend in Sea Aquaculture production based on species (ton)

Year
Species
2001 2002 2003 2004 2005 2006 2007
TOTAL 221,010 234,859 249,242 420,919 890,074 1,365,919 1,509,528
Groupers 3,818 7,057 8,638 6,552 6,493 3,132 6,370
Asian seabass 3,986 1,753 2,334 1,748 266 630 523
Lobster - - 14 - 61 558 -
Colored shell 95 25 40 12,953 15,911 18,896 15,623
Pearl - 5 2,866 38 437 - -
Sea cucumber 633 0 3 42 96 736 94
Sea weeds 212,478 223,080 231,927 397,964 866,383 1,341,141 1,485,654
Milkfish - - - 20 49 - -
Orang-spotted
- - - - 15 - -
spinefoot
Jack trevallies - - - - 131 - -
Others - 2,939 3,420 1,602 232 826 1,263
Source: Marine and Fishery Statistics 2005, 2006, 2008 (Ministry of Marine Affairs and Fisheries)
(MMAF & JICA 2007).
23
Main commodity for Indonesian aquaculture is seaweed. It shared about 30% of the
total aquaculture production, that supplied from sea aqaculture 1,485,654 ton and
from inland aquaculture 242,821 ton. Using data in 2007, sea aquaculture
commodities are Seaweeds (98.4%), Colored shell (1%), Groupers (0.4%), and Other
species (0.1%). It demonstrates obviously that seweed ruled the sea aquaculture
production (Table 3.3).
Whereas inland aquaculture commodities are more varies. The top ten commodity
producers are Common carp (15.7%), Milk fish (15.6%), Seaweed (14.4%),
Metapenaeus vannamei (11.8%), Nile Tilapia (11.2%), Black tiger shrimp (7.9%), Cat
fishes (5.4%), Other fishes (3.7%), Other crustaceans (2.9%), and Cat fishes-Patin
(2.2%) (Fig. 3.3).
Figure 3.3 Inland Aquaculture production based on top ten species in 2007 (ton)
Source: Indonesian Aquaculture Statistics, 2007 (MMAF & JICA 2007).
The raise aquaculture production is followed by the increase number of aquaculture

establishments which demonstrates in Table 3.4 and Fig. 3.4. It is covered as 63% by
pond culture consisting 49% freshwater pond and 14% brackishwater pond. This
phenomenon happened because the freshwater ponds started since Dutch
occupation, in the middle of 19th century, that people usually farmed in their
backyard. Whereas the brackishwater pond is an ancient tradition in Indonesia which
has been practiced for more than 400 years.
24
Table 3.4 Number of aquaculture establishments (unit)
Year
Culture type
2001 2002 2003 2004 2005 2006 2007
Marine 23,455 23,450 29,189 35,835 44,653 72,848 88,281
aquaculture
Freshwater 745,302 746,242 746,642 797,429 819,712 796,054 724,184
pond
Brackish 190,872 193,877 196,443 230,651 233,318 254,256 227,783
water pond
Cage 32,331 32,593 43,010 41,595 48,968 46,495 50,241
Floating net 9,117 12,622 14,670 20,745 21,111 16,962 22,298
Paddy field 287,901 243,056 249,557 275,629 267,451 234,763 225,971
Source: Marine and Fisheries Statistics, 2005, 2008, Ministry of Marine Affairs and Fisheries (MMAF &
JICA 2007)
Floating net is recognized as a growing-up system in intensive aquaculture that has

annual growth 20.7%. The development of floating net followed the rapid increase in
common carp production where there is a series reservoirs in Citarum river system.
In the other hand, paddy field culture didn‟t experience positive growth.
900,000
800,000
Marine aquaculture
700,000
Freshwater pond
600,000
500,000 Brackish water pond
400,000 Cage
300,000
Floating net
200,000
Paddy field
100,000
0
2001 2002 2003 2004 2005 2006 2007
Figure 3.4 Number of aquaculture establishment (unit)
Source: Marine and Fisheries Statistics, 2005, 2008, Ministry of Marine Affairs and Fisheries (MMAF &
JICA 2007)
25
The biggest producer aquaculture based on province in 2008 is Sulawesi Selatan
with total production 738,640 ton. The second and third ranks were occupied by
Nusa Tenggara Timur (697,606 ton) and Jawa Barat (435,549 ton) (MMAF 2010).
The Rank in 2008 is the same as that in 2007. Look Figure 3.3 for more detail
location.
Jawa
Barat Sulawesi
Selatan
Nusa Tenggara
Timur
Figure 3.5 Map of Aquaculture Fisheries Production Distribution 2007

Source: MMAF 2010
3. 3 Current issues in Indonesian aquaculture
When in the previous sub chapter; trend in aquaculture development explain based
on areas, so the current issues in aquaculture explained more detail based on media
of water; marine aquaculture, brackishwater culture and freshwater culture.
4.3.1 Marine aquaculture
If we look more specify on the quantity production of aquaculture with actual data, it
is obvious that marine aquaculture now dominated the production supply with high
annual rate 37% (Table 3.5). Using data in year 2009, the total share aquaculture
production was 59.9% from marine aquaculture, 20.8% from freshwater culture and
19.3% from brackishwater culture.
The main commodities from marine aquaculture production are milk fish, asian
seabass, groupers and seaweed (Table 3.6). The other economic fishes could be
26
seen in Figure 3.7. The methods using in marine aquaculture are raft culture, floating
nets, long line, and loose base method/lepas dasar.
Table 3.5 Aquaculture production based on media of water (2007 -2009)

Production in Ton Annual
rate
Culture type 2007 2008 2009 (%)
Marine aquaculture 1,509,528 1,966,002 2,820,083 36.84
Barckishwater culture 933,832 959,509 907,123 -1%
Freshwater culture 750,205 929,688 981,358 14,74
- Floating net* 190,894 263,169 238,606 23.18
- Cage* 63,929 75,769 101,771 12.34
- Pond* 410,373 479,167 554,067 13.72
- Paddy field* 85,009 111,584 86,913 (5.65)
Total 3,193,565 3,855,200 4,708,565 21.43
*the annual rate derived by using data from 2005 until 2009.
Source: DG. of Aquaculture, MMAF 2009
Figure 3.6 Aquaculture production based on media of water (2007 -2009)
Table 3.6 Marine aquaculture production based on main commodity

Production (MT) Annual
Main commodity
2007 2008 2009 rate (%)
Milk fish 0 469 99 -79.00
Asian seabass 523 707 2399 137.25
Grouper 6,370 4,268 7,848 25.45
Seaweed 1,485,654 1,937,591 2,791,688 37.25
Others 16,981 22,968 18,049 6.92
27
The increasing in marine aquaculture production is caused by the huge asian
seabass and seaweed production during the last three years with annual growth
137% and 37%. In the term of quantity, seaweed has a very large production as
much 2,791,688 ton or shared 99% of the total production (Table 3.6). Fish farmers
mostly farmed sea weed with type of Euchema cottonii that suitable to sea water.
Figure 3.7 Indonesian marine aquaculture economic fishes

Source: DG. of Aquaculture, MMAF 2008 in Indonesian Fishery Book 2009
For the type Euchema cottonii, Province Nusa Tenggara Timur is the biggest
seaweed producer. But in 2009 the production is drastically decreased from 696,273
ton in 2008 to 498,422 ton in 2009. This happened due to the pollution of sea water
in the area. However the decreasing didn‟t affect much the seaweed production in
general. In 2009, Province Sulawesi Tengah ranks as the first seaweed- Euchema
cottonii producer with production reached 713,562 ton.
Grouper is in the third place of the highest annual growth rate commodity, after Asian
seabass and Seaweed, as much 25.25%. Due to the suitable environment to farm
gropers are potentially available. Therefore, groupers still has tremendous
opportunity to be developed and it has high economic value as well. Demand for
groupers is increasing sharply in Asia market especially among ASEAN countries
such as Hongkong, China, Singapore, Taiwan and Japan.
Only Milkfish in marine aquaculture has large negative growth minus 79%. In
contrary, the milkfish production show positive growth rate in brackishwater culture as
11.87% (Table 3.6). There is decreasing in productivity of suitable place for milkfish.
28
According to Payitno, Head of Regional Development Planning Agency of Central
Java, under normal condition milkfish with age 3 - 3.5 months weighted 250 gram but
since last few years it needs 4 months to reach weight 200 gram. In addition, the lack
availability of seed is also one constraint in improving the production.
4.3.2 Brackishwater culture
The barckishwater culture production was increased 25,677 ton in one year (2007 to
2008) but in 2009 the production was decreased from 959,509 ton in 2008 to
907,123 ton (Table 3.7). It was a result of the decreasing in shrimp production due to
a disease in several shrimp ponds farming especially in Lampung, which is the
largest shrimp producer in Indonesia.
Nevertheless, the shrimp (Vanname 18.8% and black tiger 13.7%) production still
dominated the total share in 2009 as 32.6% after Milkfish (36.2%). Seaweed in
brackishwater also led share production as 18.9%. The other main commodities are
other species (11.5%), Asian seabass (0.4%), Nila tilapia (0.2%) and Gropers (0.1%)
(Fig. 3.8). Whilst brackishwater culture economic fishes could be seen in Figure 3.9.
Milk fish 328,189
Seaweed 171,868
Vanname shrimp 170,969
Black tigr shrimp 124,561
Other 104,551
Asian seabass 4,001
Nila tilapia 2,041
Groupers 943
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Figure 3.8 Brackishwater culture production based on main commodity in 2009 (ton)
29
Figure 3.9 Indonesian brackishwater economic fishes
Table 3.7 Brackish culture production based on main commodity

Production Annual
Main commodity
2007 2008 2009 rate (%)
Milk fish 263,139 277,002 328,189 11.87
Asian seabass 3,894 3,664 4,001 1.64
Groupers 1,666 737 943 -13.89
Nila tilapia 2,499 1,604 2,041 -4.27
Seaweed 242,821 207,470 171,868 -15.86
Vanname shrimp 179,966 208,648 170,969 -1.06
Black tiger shrimp 133,113 134,930 124,561 -3.16
Other 106,734 125,455 104,551 0.44

Brackishwater culture In Province Jawa Timur/East Java also suffered from Infectious
Myo Necrosis Virus (IMNV) and Monodon Baculo Virus (MBV). These problems
affect both traditional farming of tiger shrimp and intensive farming of Vanname
shrimp. The trigger of virus to breed is due to the polluted sea water that has high
acid level. Shrimp is very sensitive to change of water temperature and contaminated
water so they are easily infected by virus.
Furthermore, the semi-intensive and intensive farms decline in their production

because unhealthy soil condition influence from chemical contamination from fish
30
feed concentrate. In consequences during three years the shrimp production in
barckishwater culture experienced negative growth 4.22% (Table 3.6).
In 2010 the MAAF hopes that the culture of shrimp will recover from virus by applying
method of polyculture, so the water could be purified. The technique is simple, shrimp
farm use a cleaning pond and also a filtering pond as a companion for the main
culture ponds. The water from the cleaning pond is left for 3 to 5 days to kill the virus
then flowed to the filtering ponds which is planted by sea weeds, milkfish or
baronang/rabbit fish. Sea weeds will supply oxygen and filter the pathogenic agents.
Milkfish and or baronang will disintegrate residue in the ponds. According to Saifudin,
the shrimp technician in BBAP Takalar, this technique eliminates the cost for feed.
The shrimp consumes plankton which grows because of organic fertilizers. Milkfish
and baronang also consumes the seaweeds.
4.3.3 Freshwater culture
There are four kinds of freshwater culture; floating net, cage, pond and paddy field.
During three years (2007-2009), the fish production in freshwater culture grew in
positive rate as 10.3%. The share production is ruled by pond as 56% and floating
net as 24%. The share production from cage is only 10% because the most suitable
area to develop cage is on the banks of the river which often damaged due to the
high river flow or flood. Nevertheless, cage has the highest annual rate as 19.7%.
The lowest share and annual rate is paddy field because probably it is used as a side
activity of farmer to add their income in producing rice since the paddy field farm in
the agriculture areas (Table 3.8).
Table 3.8 The freshwater production based on culture type (ton)
Freshwater Year
Annual rate (%)
culture type 2007 2008 2009
Floating net 190,894 263,169 238,606 8.3
Cage 63,929 75,769 101,771 19.7
Pond 410,373 479,167 554,067 11.7
Paddy field 85,009 111,584 86,913 0.7
Total 750,205 929,688 981,358 10.3
Source: DG. of Aquaculture, MMAF 2010a
31
By total production in 2009 was1,137,297 ton, the freshwater culture production
based on main commodity is relatively more distributed. They are Nila tilapia (28%),
Other species (23%), Common crap (22%), Catfishes-Clarias sp (13%), Catfishes-
Pangasius sp (10%) and Giant gouramy (4%) (Fig. 3.9). Other commodities can be
seen in Figure 3.11.
Nila tilapia 321,348
Others 265,976
Commom crap 249,279
Catfishes; Clarias sp 144,755
Catfishes; Pangasius sp 109,685
Giant gouramy 46,254
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Figure 3.10 Freshwater culture production based on main commodity in 2009 (ton)
The Catfishes-Pangasius sp has a fantastic growth rate during 2007-2009 as 92.5%.

The significant growth occured in 2007 with production 36,755 ton to 102,021 ton in
2008. The catfishes-Clarias sp also shows positive growth 25.62%. According to
MMAF, this phenomena happed because both international and domestc markets are
already opened and besides that the cultivation techniques of catfish are not
complex. The base of this culture located in Provonce Jawa Barat, Sumatera Selatan
and Jambi.
Table 3.9 Freshwater culture production based on main commodity
Production Annual
Main commodity rate
2007 2008 2009 (%)
Commom crap -2.73
264,349 242,322 249,279
Nila tilapia 26.31
204,405 289,434 321,348
Catfishes; Clarias sp 25.62
91,735 114,371 144,755
Catfishes; Pangasius sp 92.54
36,755 102,021 109,685
Giant gouramy 14.43
35,708 36,636 46,254
Others 21.63
189,715 283,562 265,976
32
The highest economic value from this commodities is Common crap. In 2009 the
production is insignificant decreasing as 6,957 ton than in previous year with annual
rate during three years reached minus 2.73% (Table 3.9). This happened because
the cultivation way is not as easy as other commodities. This fish is farmed in almost
all region in Indonesia except Sulawesi. The base of this culture is in Province Jawa
Barat, Jawa Tengah, Jawa Timur and Sumatera Barat.
Figure 3.11 Indonesian freshwater economic fishes

According MMAF, another commodity which has been growing very rapidly is
ornamental fish that could be cultured both in marine and freshwater. The export
value from ornamental fish rose sharply during the last four years, from 9.4 million
US$ in 2006 to 10.2 million US$ in 2009. This commodity has very high economic
value and has an export market. The development is very promising since it is one of
the source of foreign exchange.
Recently MMAF assign more attention to the development of ornamental fish by

changing the organizational structure in 2010, which now consist new sub directorate
of ornamental fish. The main commodities of ornamental fish in freshwater can be
seen in Figure 3.12. Start in 2011 the MMAF will launch statistics of ornamental fish
culture.
33
Figure 3.12 Indonesian freshwater economic ornamental fishes
3. 4 Organization of aquaculture in Indonesia
4.4.1 Policy on Aquaculture

A pro-poor policy framework defines rights and obligations of producers and allocates
preferential rights to the poor people in public water (Cullinan and van Houtte 1997).
It facilitates water and coastal zone tenure purposes and delivers access to
knowledge and technology. An effective framework is likely to give participatory
process to guide sustainable mariculture development and serve as a platform for
cooperation among public agencies. A comprehensive national mariculture plan can
provide a road map for public and private sectors, financial institutions, and the
international community. Clarity in the respective roles of the public and private
sectors transmits good signals to investors, while establishing a basis for
cooperation, synergy, and public private partnerships. The policy framework will build
bridges to other sectors so that farmers can be benefit from infrastructure
development, and access finance and domestic and exports markets. These policies
need to be developed by national decision makers, based on the participation of all
national stakeholders. International partners can support this process by brokering
knowledge and experiences from other countries and sectors and other facilitating
activities Efforts of change for governing the marine national resource was started
34
since the establishment of The Ministry of Marine Affairs. Since the naissance of
department, various regulations have been implemented in order to develop
sustainable management of marine based resource. The altered development
orientation changes national perspective to marine based resources in terms of
resources diversification and public welfare, which has not been utterly exploited.
The basic consideration for embarking in an ocean-based policy is the rapid growth
of the population and the increase in people‟s awareness for seafood in relation to
health. Finally, coastal areas in Indonesia possess not only a great resource
potential, but also promising possibilities of various development activities. One of the
main focuses is on how to excel in the production of fish and other aquatic products.
The Directorate General of Aquaculture, a special body within the department, was
founded in order to address the problem. The contribution of the particular body is to
ensure sustainable availability of aquaculture products and also guarantee the
aquaculture safety and traceability of aquatic products.
For preserving national fisheries products, national law No. 31/2004 on Fisheries is
implemented. This regulation emphasizes the significance of sustainable
development of aquatic resources. The strong law enforcement in applying this law is
needed, thus in every province it has individual units to deal with regional problems
concerning the management of aquatic resources. With regard to regional autonomy,
the national law No. 22/1999 had been also implemented. This law is applied due to
the need of sustainable management of aquatic products correlating with the
improvement of fisheries products, particularly in provincial territories. So the
governor of each province has the right to manage its own marine resources for
increasing welfare of its own people.
In order to simplify the bureaucracy procedure, the government also yielded rights
based fisheries business by Government Regulation No. 54/2002. The procedure for
applying for concession, first the applicants should deliver their comprehensive
business plan. Then, applicants also submit Environmental Impact Assessment
Reports of the proposed mariculture location. Problems arise such as complicated
adjustment from the small-scale mariculture industries and low-capital producer of
fish breeders to fulfill the regulation requirement. This regulation majorly benefited to
35
the large scale producers.
4.4.2 Ministry of Marine Affairs and Fisheries
The Ministry of Marine Affairs and Fisheries composes a strategic plan for
implementing the main tasks of the department. Several units are requested to
present its outcome of every plan with a complete accountability report, in order to be
reported publicly.
1. Environmental Plan
Based on National Law on Fisheries Nr. 31/2004, the ideal environmental conditions
are:
- Creation of coastal community which enable to manage its natural resource in
terms ofsustainable management.
- Generation of marine and coastal environment which are hygienic, clean and
healthy, in order to preserve productivity of fisheries commodities and the
diversity of aquatics products.
- Stabilization in managing fisheries and marine products, such as: establishment
of an independent controlling organization, enhance the controlling method,
intensify the public participation in controlling, better law enforcement.
2. Social Plan
Most of the coastal communities in Indonesia still live under the poverty line. The
annual plan is constructed to give accurate estimations for fulfilling the target of
poverty reduction.
3. Economic Plan
Economic impact of development in the marine and fisheries sector is one of the
macro indicators for evaluating the accountability of the plan. It will give a general
perspective of national development in the scope of maintaining the productivity of
aquatic product and reduce the poverty by providing new jobs opportunities.
Promising improvement in several indicators had been altered in following years
based from the 5 years strategic plan. The important change can be seen originating
from the „blue revolution‟, which has been implemented by the government. Since the
establishment of the ministry and implementation of various regulations, rapid
changes had been occurred. The strongest achievement has been in creating job
36
opportunities in the marine and fisheries sector. Moreover in terms of national GDP
contribution, this sector also plays an important role.
4. Organization of Ministry of Marine Affairs and Fisheries

In order to enforce main tasks and functions of the ministry, the organizational
scheme had been constructed, based on Presidential Decree Nr. 10/2005. It divides
the ministry into 8 different sections:
1) General Secretary
For coordinating the implementation of main tasks and providing administration
support to the ministry.
2) General Directorate of Capture Fisheries
For formulating the regulation and implementing the regulation and
standardization of capture fisheries affairs.
3) General Directorate of Aquaculture
standardization of aquaculture affairs.
4) General Directorate of Supervising and Control the Marine Resource and
Fisheries.
standardization in supervising and controlling the marine resources and fisheries.
5) General Directorate of Marine Affairs, Coastal, Remote Island.
For formulating the regulation and implementing it and standardization in
exploration and exploitation of marine environment and coastal and remote
islands.
6) General Directorate of Processing and Marketing Aquatic Products.
For formulating the regulation and implementation of the regulation on
standardizing the processing and marketing of aquatic products.
7) General Inspectorate.
For inspection of enforcement within the department.
8) Research Organization of Marine Affairs and Fisheries.
In addition, there is body of expert staff which gives feasibility studies regarding to
the actual issues.
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5. General Directorate of Aquaculture
The general directorate of aquaculture plays the central role in promoting aquaculture
in Indonesia and alleviating poverty in rural areas through aquaculture development.
The Fisheries revitalization program for instance is based on President Decree at 11
of June 2005. This national awaken significantly optimizes the mariculture production
and its processing activities. In the beginning, it was only focusing on tuna, shrimp
and seaweed.
Moreover, it is mostly possible to improve with the other commodities. These

programs consist of several actions such as:
a. Integrated tuna industry development. It includes initiation of tuna mariculture for

producing high quality tuna.
b. Integrated shrimp industry development.
c. Development of integrated seaweed factories in the producing area throughout
Indonesia, and also processing factories which transform seaweed into semi-
refined products. In order to provide sustainable seeds, the centre of seaweed
seed will be established.
The general directorate of aquaculture is responsible for the common aquaculture

policy, which covers all the aquaculture activities, the farming of living aquatic
resources as well their processing and marketing. In line with the basic principles of
the common aquaculture policy, the Directorate General prepares legislation,
implements management policy and monitors compliance with community law in this
field, by means of discussions, analyses and studies.
The general directorate of aquaculture has the following technical implementation

units:
1. Mariculture Development Center, Lampung
2. Mariculture Development Center, Batam
3. Mariaculture Development Center, Ambon
4. Mariculture Development Center, Lombok (West Nusa Tenggara)
5. Center for Brackish Water Aquaculture Development Center, Jepara (Central
Java)
6. Brackish Water Aquaculture Development Center Takalar (South Sulawesi)
38
7. Brackish Water Aquaculture Development Center, Situbondo (East Java)
8. Brackish Water Aquaculture Development Center, Aceh
They conduct technology propagation/extension and develop applied technology with

the help of commercial scale experiment facilities (hatchery, nursery and grow out
facility) training facilities and laboratory services. The technology transfer by these
institutions is well established through on the job training, poster and leaflet
publications, on farm supervision and pilot projects.
Chapter 4. Further discussion in mariculture
4. 1 Problems in the development of mariculture
The term mariculture in this report is refer to all cultures that farmed in coastal areas,
which consist of marine aquaculture and brackishwater culture. Unlike the other
activities, mariculture activity is less dependent on the availability of land since it is
farmed in the coastal areas. The level of investment required for this activity is lower
than in the capture fisheries and in the agriculture industry (Chua, 1986).
The Indonesian government has given attention to the development of mariculture

development since 1980. The first regulation regarding mariculture was Presidential
Decree No. 23 of 25 May 1982. The first pilot project for mariculture in Indonesia
commenced in 1989 in Lampung with sea bass as farmed species (Badan
Pengkajian dan Penerapan Teknologi (BPPT) 2001). The success story of this
project was followed by other provinces such as North Sumatera, Riau, Lampung,
Jakarta, East Java, and Maluku. Generally some species culture within the region
such as grouper (Epinephelus sp.), snaper (Lates calcatifer), clown fish (Siganus
sp.), bivalves for instance pearl (Pinclada sp), cockles (Anadaragranosa), green
mussel (Mytilus viridis), seaweed (Euchema sp. And Gracilaria sp.) and sea
cucumber (Holothuria sp.) (Adisukresno and Perbowo, 1996).
Mariculture provides job opportunities and short term revenue. The existing producer
of seaweed are located at 7 provinces i.e. Sulawesi Utara, Sulawesi Tenggara,
Sulawesi selatan, Jawa Timur, Bali, Nusa Tenggara Barat, Nusa Tenggara Timur.
They apply floating method and off bottom method. The effective area produces 40
tons per ha/month. The government strives to develop this commodity by means of
39
collateral corporation with capital sources (banking) for credit distribution, company
for marketing and processing, and coastal community as seaweeds producer. The
technology of grouper (tiger and humpback) farming is established since 1999. The
seeds from hatchery are available at Lampung, East Java, and Bali. Companies
located close to the source of trash fish have advantages from low price and fresh
feed supply.
A recent problem in the grouper farming industry is the trading. Markets of grouper
(especially China) require live fish. This bears high risks and costs for transportation.
Many diseases occur due to parasite and pathogen influence and also discourage
small scale farmers to develop mariculture activities.
Several mariculture activities are already well establised, such as shrimp culture in
brackish water ponds, fish farming (groupers, rabbit fish and snapper) in nets and
cages in the coastal area, and seaweed culture in floating cages. Approximately 53%
of the national mariculture production was cultivated in Bali and Nusa Tenggara. The
other portions of production originated from Sumatera and are consecutively followed
by Java, Kalimantan, Sulawesi, Maluku and Papua.
The highest production in Bali and Nusa Tenggara is seaweed with total production
yielding 261,196 tons of a total national production of 367,964 tons. In Riau province,
8,000 tons of grouper and sea bass are produced. In addition shrimps, pearl shells
and shell fish is also cultivated. West Java produced more than 10,000 tons of shells
in 2004 (DKP 2004). The method of culturing seaweed in Indonesia is relatively
simple. It also takes less time to farm (45-60 days) in contrast to grouper or other
finfish, which need 6-8 months (BPPT, 2001). Therefore seaweed culture has
established as a favourable type of mariculture, due to low production costs.
Although marine aquaculture activities contribute to economic development, they

might adversely influence the coastal ecosystem, the environment and income
distribution. The possible adverse consequences for the environment depend upon
the method of marine aquaculture. For instance, farming technique using cages,
sticks, rafts and pens most likely will cause navigational hazard; be incompatible with
utilization for recreational purposes and for fishing; have an unpleasant visual impact;
40
conduct to deterioration of wild species due to habitat change; and hardening the
bottom sediment due to the upsurge of waste and possibly the formation of insoluble
phosphate compounds (Tisdell, 1989:10; Pullin 1989:111; Folke and Kautsky, 1989).
Moreover, the intensification of mariculture activities, predominantly, the alteration of

mangrove areas or wetlands to brackish water fish and shrimp ponds may cause
negative environmental impacts such as destruction of natural ecosystems,
especially mangroves, the release of effluents/drainage high in biological oxygen
demand (BOD) and suspended solids. The large scale conversion of mangrove area
to shrimp ponds in Marunda and Tanjung Karawang, East of Jakarta, has rapidly
depleted valuable mangrove resources. This occurrence also happened in several
other areas across Indonesia. The development of marine aquaculture in Indonesia
is not only considering the direct economic benefits, but also social and
environmental spill-over with the perspective to build sustainable economic
development for people in rural areas (Barbier, 1987).
Grouper culture seems unsuccessful. Technical and non technical constrains

occurred after implementation i.e. the grow out period is too long. Farmers were not
able to spend long time without earning income. Lobster is one of the mariculture
commodities which are able to generate income within a short period. A floating cage
with 50 g adolescent lobster (Panulirus spp) fed with trash fish can reach 250 g within
6 months. The tropical abalone farming technique (Haliotis asinina) is ready to be
further developed. Current experiments show that the animal can life and grow up in
floating cages, obtain marketable size (7 cm shell length) in 12 months, while fed with
Gracilaria spp and Ulva spp., the survival rate is about 50% and the FCR about 1:15.
The technique to produce seed (spat) in hatchery is available, but there is no private
hatchery industry built up to make sufficient spat available. Green mussel (Perna
viridis) culture that is established around the gulf of Jakarta has produced 10,000
tons annually.
4. 2 Structure of mariculture in Indonesia
Mariculture has developed gradually from the status of a minor sub-sector of fisheries
to the new emerging sector. Nevertheless, much of the present-day mariculture
consists of small type enterprises. These enterprises, which can be classified as
41
medium-scale, have come about as the result of efforts of middle class individuals
and groups to diversify their 15 sources of income. Government regulations limiting
ownership of land and restricting the possession of unused agricultural land (even
when it is unproductive), have compelled landlords in Indonesian regions to convert
the land into aquatic farms. The proven profitability of such farms has contributed
substantially to the development of medium scale enterprises. The failure of some ill
conceived enterprises and inadequacies of technical know-how, markets and
business management have slowed down the pace of development of large-scale
farming in Indonesia.
Other major constraints, as mentioned earlier, are the problems of acquiring large
enough sites and the growing concern for the possible environmental effects of
mariculture. Though many rural developments, „work for food‟ or similar programs
promote the establishment of fish cages or seaweed culture farms for providing part-
time employment and proteinous food to farmers and their families, the present trend
is to develop suitably sized mariculture units that would provide an appropriate
livelihood or a comfortable income to the farmer and his family. Such a type of
farming generally qualifies for credit facilities, subsidies and extension services
provided by the provincial government. Where such essential support services have
been properly organized and implemented, enterprises owned and operated by
families with part-time assistance of paid workers have been successful. While
communally owned or common property sites had to be used and the investments of
capital or labour were beyond the capabilities of individuals or families, the need
arose for organizing cooperative farming enterprises.
Cooperative mariculture facilities have prospered under favourable conditions, and

have served to improve the economy and living standards of sizable communities.
The development of export-oriented activities, especially of tuna and grouper farming,
has shown the rationale for large scale enterprises. Investments required for the
establishment and operations of large farms come from other industrial sectors. It is
not always companies or corporations concerned with fisheries and agro-industries
that have invested in mariculture; many others which were not even remotely
concerned with farming have seen in mariculture a profitable type of enterprise.
Nevertheless many fishery and feed industries have also invested in large scale
aquatic farming enterprises. The initial financing of such ventures has been relatively
42
easy because high profits have been anticipated and usually governments offer
many concessions to industries that bring in export earnings.
Problems have arisen when some of the well publicized ventures have floundered,
mainly because the longer gestation period of mariculture projects has not been
taken into account when estimating cash flows in such capital-intensive operations.
The difficulties of acquiring suitable farm sites have impeded large-scale farming,
especially coastal farming. Involvement of the corporate sector and of non-natives is
not always welcomed by local communities and, as a result, problems are
experienced in acquiring suitable sites and establishing operational farms. Clashes of
interest occur not only with local communities, but also between development
authorities and environmental administrations and activists. It is undoubtedly a need
for large scale farmers to appreciate environmental concerns and monitoring impacts
for timely mitigation, as an integral part of farming operations. Convincing the local
communities is as important as satisfying the requirements of regulatory authorities.
Attempts by some private companies to introduce contract farming are directed
towards winning the involvement of local farming communities and overcoming
government restrictions on the allocation of public lands to private companies or
expatriate entities. The actual cultivation is done by small farmers and sold to
companies at agreed prices. If administered equitably contract farming can prove
advantageous to individual farmers as well as corporate bodies investing in
mariculture.
(A) Vertical Integration
Vertical integration used to be considered an efficient organizational structure for

mariculture in many respects. This was probably so in early stages of development,
when input production and distribution were poorly organized in many regions. The
general tendency in organized farming appears to be towards decentralization or a
horizontal integration of activities. This is in line with many manufacturing industries
and has proved to be cost-effective. Though large-scale intensive mariculture may
appear at first to be more suited for vertical integration, it is often less efficient
because of the nature and scale of the various operations involved.
Therefore, when major activities like seed stock production, feed manufacture and
marketing, they usually opt to establish separate companies for the purpose, with
43
suitable linkages for horizontal integration. Contrary to expectation, the small-scale or
small holder type of farming is more often vertically integrated than large-scale
farming. The construction and maintenance of sea-farms, seed and feed production,
together with harvesting and sales may all be integrated into a centralized operation
on the farm. Medium-scale farming represents an intermediate stage of semi
integration depending on the scale of operations and production systems, especially
with regard to the use of commercially manufactured inputs. An important factor that
governs the organization of farming enterprise is the system of production which is
adopted. Requirements of external inputs, the nature of farm-level expertise and
skills and operational compactness are dependent on the technologies involved.
Examples of differences in organizational requirements can be seen between
extensive and intensive forms of farming, seasonal and continuous farming.
(B) Financial issues
As indicated earlier, most small-scale farming is carried out by owners-operators,

some of whom may have lease on the farm site for limited periods. Progress has
been made in establishing credit facilities for farming enterprises, but the problem of
collateral for loans continues to constrain farmers who do not own the land on which
the farms are constructed, or have no other suitable assets. Short leases are seldom
accepted as adequate collateral. Farms owned and/or operated by cooperatives and
entrepreneurs with adequate financial standing experience fewer difficulties for credit
arrangements with the government or private financial institutions, as they can prove
their credit worthiness more easily.
State-sponsored credit programmes generally favour group-lending, but to take

advantage of this a stable cooperative group should be in place with a satisfactory
track record in the business. Many of the existing credit programmes are geared to
providing operating capital, which may cover the needs of procuring inputs, labour,
harvesting, marketing and management for one or more production cycles. Financial
support for starting new farms or expanding existing farms has therefore sought from
other sources. International and regional financial institutions like the World Bank and
the Asian Development Bank have co-sponsored, with national governments, and
provided capital for establishing farms. These loans are dispensed through national
financial agencies. Because of the increasing demand for loans, national banks have
found it necessary to appoint their own technical to appraise loan application and
44
monitor their utilization. Credit analyst in most banking institutions, even those
familiar with fisheries sector financing, are not adequately conversant with
mariculture, especially its economic aspects.
Even those institutions which have financed farming enterprises through government
or guaranteed loans seldom posses relevant farm performance data that would help
in assessing the technical and economic soundness of projects. Available information
has not been compiled and analyzed to enable its use for investment assessments.
Shang (1981) has made a commendable pioneering effort to compare productivity,

production costs and the estimated internal rate of return of different forms of
mariculture, fishing and animal husbandry in Taiwan. Such information, updated at
regular intervals, would go a long way in assisting financing agencies and investors in
evaluating projects and facilitate the flow of sound investment to the sector. The
procedures for raising capital from private to open market sources for large-scale
mariculture enterprises, including joint ventures, are not very different from those for
other agro-industries.
The problems of providing collateral for loans can be faced by even corporate-
sponsored enterprises. They are generally intended to be owned and operated by
their subsidiaries and to be developed on leased sites belonging to public or private
sector parties. This precludes the financier from taking a charge on the land.
Machinery, plant and buildings are of little value in comparison with the investments
required for developing the farm and the related infrastructure. This, together with the
lack of historical farm performance data, makes it difficult for a credit analyst to
evaluate submitted project profiles following accepted credit risk guidelines. This lack
of information may also make it difficult to cover the risk adequately by insurance.
(C) Infrastructure development
As in all other enterprises, the availability of suitable infrastructural facilities is an

important determinant in successful mariculture. Land or water transportation
vehicles, access to markets and essential amenities for farm employees are often
major problems. Obviously, small and medium-scale farming enterprises are likely to
find it too expensive to finance the development of all such facilities themselves.
Even larger enterprises may have difficulties in meeting the costs involved, especially
45
in the early stages. Therefore the industry has necessarily to look to the concerned
government agencies for assistance.
Actually, the development of infrastructural facilities is considered the responsibility of

governments. The planning of mariculture on a national level is expected to have as
its centre piece of development and maintenance of infrastructure in its broadest
sense, including essential ancillary industries and services. The infrastructural needs
of an enterprise obviously depend very much on its nature and location.
Correspondingly the new initiatives of coastal zone management, which include
mariculture, would necessarily incorporate in its plan the relevant infrastructure for
mariculture as well.
Presumably the most expensive requirements are for off shore cage farming, which
would include both land facilities as well as coastal maintenance units. The high
investment involved makes it very unattractive at present for most private enterprises.
Because of costs, logistics, and the need to fit into national development priorities,
the mariculture sector has to turn to the government for necessary support for
establishing and maintaining facilities which can only be done effectively through
governmental agencies.
(D) Support services
Small-scale homestead mariculture in Indonesia has always been a government

supported activity. Such support has consisted of easy credit or grants for the
construction of farms, provision of inputs, mainly seed stock given free or at
subsidized prices, and extension assistance. Some of these have been offered also
to medium-scale agencies did most of the work from farm construction to harvesting
and marketing of the produce for small farmers, but obviously this type of assistance
could not be sustained and these efforts were abandoned as counterproductive.
Governmental support to large-scale farming has been restricted mostly to export-
orientated enterprises that contributed to grants and the preferential allocation of
sites, import and export entitlements and joint venture facilities with foreign entities,
have been offered. Where warranted for regional development or transmigration of
populations who could find livelihood by farming.
By the establishing the Directorate General of Aquaculture, these developments have
46
widened the source of support and to some extent have strengthened the status of
the sector in national policy planning. Open water stocking and other stock
enhancement programmes have historically been governmental or government-
sponsored activities. Likewise, cooperative or communal farming have depended, at
least in the initial stages, on government support. As a result of structural
adjustments, such farms have been forced to become self-supporting and profitable.
Many of them therefore had to be privatized and progressively converted into smaller,
more efficient ventures. With the increasing importance of the mariculture sector,
there has been organized through government as state corporations, although some
limited assistance has been offered through private agencies and manufacturing
industries. The direct involvement of government agencies in mariculture production
is progressively decreasing, even in when seed stock used to be raised and
distributed from governmental farms.
However, state hatcheries and nursery farms are maintained by the public sector to
meet the needs of stock enhancement programmes. Beside this, state support to the
mariculture sector consist of promotion and guidance, formulation and
implementation of regulatory measures, infrastructure
development, provision of specialized education and training facilities, research and
technology development, technology transfer, general administration of the sector. In
Indonesia, the responsibilities are allocated to regional administrations, with major
policy matters being handled at the central government.
(E) Extension and diagnostic services
Among the support provided to the mariculture sector one which is of special
importance is the extension service, which is expected to be the main channel for
technology transfer and guidance to farmers and entrepreneurs. Technology transfer
can be from laboratories and research centers to field technicians. The aim has been
to reach the level of organization and effectiveness achieved at least in agricultural
extension, but for various reasons the expectations have seldom been fulfilled.
Probably the most important reason is the inadequacy of resources and manpower
allocated for extension work and the relative priority accorded to it. Secondly it is not
always easy to find personnel with the required qualities to work effectively service.
The extension agent who has to work with farmers or producers is the key person in
47
an extension service. He has to be first and foremost an experienced technician with
hands-on experience in the systems of mariculture he may be required to deal with.
Additionally and more importantly, he should have the right attitude and personal
qualities that are necessary to work with farmers and producers of different
backgrounds, and succeed in solving their problems and persuading them to employ
new and improved technologies when required.
An extension of agent‟s training has to include not only mariculture technologies, but
specialized extension methods adapted to mariculture practices. These are
qualifications far above that of a normal technical or development officer in a
government agency, but unfortunately the status and prospects of an extension
officer in a mariculture institution or agency seldom
correspond with the importance and complexity of his functions. Consequently it

becomes difficult to attract the right type of candidates and retain them in service.
Because of this and as an economy measure, mariculture extension work has in
some cases been combined with other established extension services such as
agriculture or rural development.
The apparent strength and wide coverage of such services, along with the facilities
they command, were expected to provide mariculture operators with some of the
basic information and access to appropriate institutions within the country for
specialized assistance. Also, as revealed by recent surveys, many of agricultural
extension agents are under-qualified for their jobs, and have often unrealistic targets
to meet in their own field. With limited transport facilities, inadequate training and
communication support, they already have an impossible task on hand due to the
vast areas that each has to cover. It would therefore be unrealistic to expect them to
handle adequately an additional field, such as mariculture. Nonetheless, it is quite
conceivable that some sort of joint efforts by agriculture and aquaculture extension
services may prove cost-efficient in farmer contacts, equipment and transport use
and farmer training.
Another important support that the mariculture industry expects from government
agencies is in the diagnosis and control of communicable diseases. With the
expansion and intensification of mariculture the occurrence and spread of diseases
48
and consequent loss of stocks have greatly increased in Indonesia. Though the
diagnosis and treatment of number diseases are now known, there are many
diseases that cause major stock losses, such as those caused by viruses, they have
no known remedies. Many communicable diseases are too complex to diagnose
precisely because of the inter-linkage of primary and secondary infections and are
therefore classed as syndromes of one type or the other. These constraints, together
with the problems of controlling the spread of communicable diseases and the public
health implications of mariculture practice have served to focus on the need for a
holistic approach to health and disease management.
4. 3 An example: marine aquaculture in Bali
The economic development of Bali in 2005 was only 5.56 % of GDP (BPS Bali 2006).
Bali possesses great potential to develop marine aquaculture due to the superior
ecosystem of various species. The marine aquaculture area in Bali is 1,551.75 ha.
The main species cultured in Bali are seaweeds like Euchema Cottonoii, Euchema
Spinosium which is produced in the regions Buleleng, Badung and Klungkung
regency. The areas deployed for mariculture is 28% of total prospected area,
therefore 1,131.15 ha (72%) still have not been utilized. Grouper also plays a
significant role in the Bali marine aquaculture production. It accounted for 2,310 tons
of production (BPS Bali 2005) .There have been good advances of research in
hatchery production of grouper. At the Gondol Research Institute for Marine
aquaculture at the north coast of Bali, the mass seed production of Cromileptes
altivelis has been successful. Broodstock have been able to spawn naturally all year
round, although the survival rates of larvae are low at the early stage. Some private
hatcheries have succeeded in seed production, applying technologies learned from
the Gondol station. But the technology transfer has still to grow further. The major
producing area for seaweed is Nusa Penida Island and Nusa Lembongan Island.
Jungut Batu village is one example of seaweed culture centres in Nusa Lembongan.
90 % of total household heads are engaged in seaweed farming. People work as
seaweed farmer, due to instant profits and short cultivation duration (30-45 days).
Average income of the farmers start from Rp. 1,000,000 (around 90 Euros a
monthly), but it depends on the utilized area that they posses. The price for Euchema
Cottonoii is Rp. 3,000/kg and Euchema Spinosium is Rp. 1,800/kg.
49
4. 4 An example: organization of mariculture in Gondol, Bali
Gondol is located in Penyabangan village, part of the Buleleng regency. Buleleng

regency is in the northern part of Bali Province (the Bali Island) of Indonesia, and
covers a coastline of 144 km from West to the East within a 1,365.88 km2 area. At
the West part of Buleleng District, there is the Bali Barat National Park, which has
land and marine protected areas, adjacent to Pejarakan village (one of the project
sites). With tropical temperatures (25-30° Celsius) the district has a dry season (April
to October) and a rainy season (October to April). In the southern part of the district is
a high land area while at the northern part there is a low land area.
With an altitude of 0-1000 meters above the sea level, the district has high mountains
and lakes in the high land while in the low land there is a long coastline area. The
major activities of the communities are agriculture (in southern part) and fishery (in
northern part) with many other income generation activities such as trades and
services (including tourism business). The whole districts cover almost 25% of the
total area of Bali province The population of the area is 588.662 (in 2002) with a
mixed community split between the local Balinese and migrants from Java, Madura
and Sulawesi among others, with a relatively good gender balance. The majority of
the populations are Balinese, where thetraditional institution of Bali (Banjar) takes the
lead in organizing many aspects of community living.
The government agencies have a more administrative role rather than cultural and
religion traditional ways of life. The Balinese are Hindus who have a strong tradition
of performing various kinds of cultural and religious traditions in their daily life. The
majority of the community graduated from elementary school (almost 70%) with less
than 1% graduated from universities. With various fishing activities, the site has also
The Center for Fish Culture Research Center (Balai Besar Riset Perikanan Budidaya
Laut) Gondol which remarks Penyabangan as the center of fish culture. The center
has been disseminating the idea of producing fish culture to provide alternatives for
the local community aside from traditional fishing.
The mariculture also contributes to the fish diversity in the area. It is strategic to learn
more about how the local fish enterprise has been growing in the area and how to
ensure that the development is within the sustainable development portfolio. In the
50
overall scheme, the fishing activities in this northern part of Buleleng district involves
fishing for consumption fish, fishing for ornamental fish and fishing through
mariculture.
The fishermen combine the work with other activities to have more income (trade,
handicraft, labor, small shops, husbandry etc). The concern from the community is
the practice of illegal fishing (using cyanide and bombs) due to the weak system in
law enforcement. The community expects that there will be a collaborative
management between the local government and the community to monitor the fishing
practices which can be more effective to preserve its natural resources. There are
three main groups which make up the main actors in the area: the fishermen group
which has its management system related to their activities; The village government
institutions to manage the legal trading for the community and bring access to micro
finance institutions, and “adat” or a traditional institution which regulates the
communities‟ religion and cultural activities, and provides financial assistance.
Within the fishermen community the role of “pengepul” or middleman is the key of the
distribution. They buy the collected fish, they have channels to the exporters, and
through long term business experience they have all the strengths of
entrepreneurship and dominate the market at the local level. Aside from that, the
middle men will provide and assist the community for more than economic reasons.
In many cases, the relations are more “family relations” who are very strong and
convenient for many parties. Changes to the socioeconomic pattern can be perceived
as “sensitive”.
4. 5 Strategies for mariculture in Indonesia
4.5.1 Public and private sector rules
The public sector has a vital role to play in creating an attractive investment climate,
establishing a framework for disease control, monitoring transfer of the fish across
boundaries, overseeing water management and environmental protection, ensuring
the quality of feeds and seeds, certifying the health safety of mariculture food
products.
51
Functions that may require public involvement include seed production and supply,
maintenance of breed stock quality, and extension and certification schemes.
Engagement of NGOs in the provision of microfinance, extension, and independent
oversight of environmental and equity issues may be beneficial. Suitable inventive
can enlist the private sector in the creation and operation of infrastructure, such as
those for fish food safety and sanitary control, adapting proven technologies and pro-
poor sustainable mariculture models and encouraging partnerships in applied
research among industry, government, and research institutions.
4.5.2 Environmental sustainability

Introduction and continuance of environmentally friendly mariculture systems is vital.
Development assistance can foster adoption and application of codes and best
practices for environmentally friendly mariculture, which will increase economic
returns while providing effective environmental stewardship and producing healthy
products. Several actions such as zoning of mariculture and integration with coastal
and river basin planning, incentives to use processed feeds to reduce harvesting of
trade fish for feeds and to use, rigorous evaluation, risk assessment, and monitoring
and control of species transfers and introduction between regions, use of ecolabels
and certification systems, particularly to capture export markets and internalizing the
environmental costs through fiscal and other measures are needed.
4.5.3 Knowledge and human capacity building
Knowledge and human capacity building are fundamental and investment in human
and intangible capital is perhaps the highest priority for sustainable mariculture. This
capital can be cost-effectively generated in Indonesia through use of networks and
south-south cooperation backed by sustained support from the international
community. The initiatives and approaches include joint venture, formal and
vocational and informal training, applied research alliances, and establishment of
producer organizations. Investment in social capital through community-based
management approaches and corporate links provides access to financial capital,
support infrastructure, and markets. The mariculture success is due to strategic
planning and long-term efforts by government, including special institutional
arrangements, supporting laws and regulations, and access to inputs, credit, and
markets.
52
4.5.4 Economic growth and investment
Sector support can be considered along the entire supply and product value chain
from underpinning knowledge industry and services to infrastructure and processing
through building incentives and processes for cooperation and partnership among
government agencies, producer groups, and non-governmental organization for
sustainable mariculture development, mobilizing institutional credits for investment by
poor people and women in mariculture and designing incentives to stimulate
mariculture development in remote areas.
4.5.5 Strengthening of coastal zone management
Related the future mariculture project, the regional government of Bali needs to
create integrated coastal zone management and Bali coastal management
partnership start to formulating a regional policy for Integrated Coastal Zone
Management. The policy will set up a coastal area management approach that unites
the government and community, science, and management, and sectoral and public
interest in preparing and implementing an integrated plan for the protection and
development of coastal ecosystems and resources.
The ICZM policy will integrate all other sectoral policies which address issues
relevant to coastal area/resources management, and bring about effective
management by facilitating and enhancing partnerships among communities,
resource users, all sectors and all levels of regional government. Some of the main
issues of concern of the future policy are issues related to the improvement of well
being and livelihood of all beneficiaries including coastal communities. The policy will
work to improve the decision making process by providing clarification and guidance
on resource use and allocation, and conflict resolution at regional level.
Furthermore, apart from promoting integrated and sustainable approaches to the

development of major economic uses of the coast, the policy supports planning
through a participatory process that involves communities and integrates various
sectors and other relevant stakeholders and integrated management of coastal
resources and activities at the local level that balances national and local interests.
This promotes sustainable resource use and management, which in turn will improve
livelihoods of coastal communities and contribute more effectively to national
development.
53
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Aquaculture in Indonesia

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Aquaculture in Indonesia

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Institut für Weltwirtschaft

Verbundprojekt WTZ Indonesien

SYSMAR – Marine Aquakultur in Indonesien

Nachtrag: Aquakultur in Indonesien

Report on the Aquaculture Industry in Indonesia

Annisa Indah Sari

Forschungszentrum Jülich GmbH

Teil A des Zwischennachweises

Kiel, November 2010

1. 2. Geographical condition .................................................................................. 6

Chapter 2. The existing condition of fishery sector in Indonesia .................... 7

2. 1 History of fishery sector in Indonesia ............................................................. 7

2. 2 Potential of fisheries resource utilization ....................................................... 9

2. 3 Position of fisheries in national economics .................................................. 11

2. 4 The structure of fisheries activities .............................................................. 15

Chapter 3. Indonesian aquaculture .................................................................. 19

3. 1 Opportunity to develop aquaculture ............................................................. 19

3. 2 Trend in aquaculture development .............................................................. 22

3. 3 Current issues in Indonesian aquaculture ................................................... 26

4.3.1 Marine aquaculture ............................................................................... 26

4.3.2 Brackishwater culture............................................................................ 29

4.3.3 Freshwater culture ................................................................................ 31

3. 4 Organization of aquaculture in Indonesia .................................................... 34

4.4.1 Policy on Aquaculture ........................................................................... 34

4.4.2 Ministry of Marine Affairs and Fisheries ................................................ 36

Chapter 4. Further discussion in mariculture .................................................. 39

4. 1 Problems in the development of mariculture ............................................... 39

4. 2 Structure of mariculture in Indonesia ........................................................... 41

4. 3 An example: marine aquaculture in Bali ...................................................... 49

4. 4 An example: organization of mariculture in Gondol, Bali ............................. 50

4. 5 Strategies for mariculture in Indonesia ........................................................ 51

4.5.1 Public and private sector rules .............................................................. 51

4.5.2 Environmental sustainability ................................................................. 52

4.5.3 Knowledge and human capacity building .............................................. 52

4.5.5 Strengthening of coastal zone management ......................................... 53

Figure 2.2 The location of fisheries potency based on FMA ....................................... 9

Figure 2.5 Scheme of fishery activities in Indonesia ................................................. 15

Figure 2.6 Sub activities of fishery sector in Indonesia ............................................. 15

Figure 3.1The percentage of potential areas of aquaculture .................................... 20

Figure 3.2 Trend of aquaculture production based on areas (2001-2007)................ 23

Figure 3.4 Number of aquaculture establishment (unit) ............................................ 25

Figure 3.5 Map of Aquaculture Fisheries Production Distribution 2007 .................... 26

Figure 3.7 Indonesian marine aquaculture economic fishes ..................................... 28

Figure 3.9 Indonesian brackishwater economic fishes ............................................. 30

Figure 3.12 Indonesian freshwater economic ornamental fishes .............................. 34

Table 2.1 Potecy, production and utilization of fiheries in Indonesia ........................ 10

Table 2.2 Position of fisheries in Indonesia‟s national economics ............................ 14

Table 2.4 Fishery production by type disposition (Ton) ........................................... 17

Table 2.6 Index of fish consumption in Indonesia (2001-2006) ................................ 18

Table 3.2 The estimation of economic value of sea aquaculture .............................. 20

Table 3.4 Number of aquaculture establishments (unit) ........................................... 25

Table 3.6 Marine aquaculture production based on main commodity ....................... 27

Table 3.7 Brackish culture production based on main commodity ............................ 30

Table 3.8 The freshwater production based on culture type (ton)............................. 31

Table 3.9 Freshwater culture production based on main commodity ........................ 32

This report is identified an existing condition of fishery sector in general, current

Figure 1.1 Map of distribution Fisheries Management Area (11 FMA)

FMA 571 : Malaka Strait – Andaman Sea

2. 1 History of fishery sector in Indonesia

Figure 2.2 The location of fisheries potency based on FMA

Source: MMAF 2005

2. 3 Position of fisheries in national economics

Comparing with other countries, the contribution of fishery sector in Indonesia is