{"Bibliographic":{"Title":"Fisheries of Indonesia, 1972","Authors":"","Publication date":"1974","Publisher":""},"Administrative":{"Date created":"08-20-2023","Language":"English","Rights":"CC 0","Size":"0000047807"},"Pages":["SH11\nLibrary, Northwest Fisheries Center\nOCT 11 1974\nNational Marine Fisheries Service, NOAA\n.A25f\n2725 Mentiake Boulevard East\n0.74-4\nSeattle, Washington 98112\ncopy 2\nOF\nCOMMUNICATION\n*\n*\nWITH\nAvenue\nSTATES\nOF\nForeign Fisheries Leaflet No. 74-4\nFisheries of\nIndonesia, 1972\nOffice of International Fisheries\nWASHINGTON, D.C.\nJune 1974\nNational Marine\nNATIONAL OCEANIC AND\nnoaa\nATMOSPHERIC ADMINISTRATION\nFisheries Service","Table of Contents\nFISHERIES OF INDONESIA, 1972\nPage\nIntroduction\n1\nFishery resources\n2\nStructure of the industry\n3\nCommercial catch\n6\nProduction and marketing of fishery products\n7\nConsumption of fishery products\n11\nForeign trade\n12\nDomestic and foreign investment in fisheries\n14\nForeign Technical Assistance and Aid\n19\nVessels and gear\n20\nEmployment\n24\nFisheries and the Five-Year - Plan\n25\nOrganization of the Directorate General of\nFisheries\n27\nSources\n29\ni","FISHERIES OF INDONESIA, 1972\nWilliam B. Folsom and James J. Reilly\nINTRODUCTION\nIndonesia is a nation of some 3,000 islands which stretch for more\nthan 4,800 kilometers along the Equator between the Malay Peninsula\nand northern Australia:\nEQUATOR\n95\n150°\nDjakaria\n&\nOr\nBALI\nNUSATENGGAR\n500 MILES\n800 KILOMETERS\nAdministratively, Indonesia is divided into 8 different\nregions: Sumatra, Java, Kalimantan (formerly Borneo), Sulawesi\n(formerly the Celebes) Bali, Nusatenggara, the Moluccas, and\nIrian Jaya (formerly West Irian). There are 23 additional sectors\nwithin these 8 major divisions.\nIndonesia's 119 million inhabitants live on a crowded land mass of\nsome 1.9 million square kilometers (about the size of Texas). The\nIndonesian's eat about 10 kg of fish per capita per year; roughly\ntwo-thirds of this fish come from the nation's marine fisheries\nwith the remainder being provided by the inland fisheries of\nIndonesia.\nWilliam B. Folsom is with the International Activities Staff, Fx-4\nNational Marine Fisheries Service, NOAA, and James J. Reilly is an\nEconomic-Commercial officer with the Embassy of the United States\nof America in Djakarta, Indonesia.\n1","FISHERY RESOURCES\nThe Directorate General of Fisheries in Indonesia estimates that the total\npotential yield of Indonesia's fisheries is 8.9 million metric tons per\nyear. However, only 15 percent of this resource is presently being harvested.\nMarine Resources:\nThe seas surrounding Indonesia are believed to be richer than those surround-\ning many other tropical islands. The total area of the Indonesian seas is\nabout 5 million square kilometers. Indonesian fishery officials believe that\nthese waters could provide Indonesians with 7.3 million metric tons of fish\nper year.\nAs many as 200 varieties of commercially important fish abound in Indonesia's\nwaters. The principal varieties include: coral fish, crustaceans, jack\nmackerel, mackerel, rays, sardines, sea breams, sharks, and tuna. Many tuna\nspecies, for example, migrate in the Molucca and Banda Seas, and the spawn-\ning ground of the southern bluefin is found off the island of Java. In-\ndonesian waters are also important for their shrimp resources 1/\nInland Resources:\nThe total inland water (fresh and brackish) area in Indonesia is 9.4 million\nhectares with a potential yield of 1.6 million metric t per year; present\nproduction is around 430,000 t. The estimated potential harvest for\nIndonesia's fisheries both inland and marine- is shown in table 1.\n1/ A comprehensive examination of Indonesia's shrimp potential was presented\nin FFL 73-16, \"A Review of the Indonesian Shrimp Fishery and its Present\nDevelopments.\" This report was reprinted in the Marine Fisheries Review\nas MFR Paper 1030.\n2","Table 1.\nEstimated fishery resources in Indonesia\nResource\nYield\n1,000 m t\nMarine:\nPelagic fish (excluding tuna)\n4,000\nDemersal fish\n3,000\nTuna\n200\nShrimp\n125\nTotal\n7,325\nInland:\nSwamps\n821\nLakes\n652\nPonds\n73\nRice paddies\n73\nRivers\n3\nTotal\n1,622\n8,947\nGrand total\nSTRUCTURE OF THE INDUSTRY\nMarine Fisheries:\nThere are 860,800 fishermen in Indonesia who operate 284,707 fishing boats\nmostly small canoes or sailing boats. The entire country has only\n7,268 motorized boats.\nIn 1971 the main producing areas were Sumatra with 37 percent, Java with\n22 percent, Kalimantan (formerly Borneo) with 21 percent, and Sulawesi\n(formerly the Celebes) with 14 percent.\nBy number of fishing craft, Sulawesi led in 1971 with 36 percent of the\nentire Indonesian fleet, followed by Sumatra with 16 percent of the fleet,\nJava with 15 percent, the Moluccas with 11 percent, and Kalimantan with 7\npercent. The Moluccas produce only about 4 percent of the total Indonesian\ncatch, but have 11 percent of the boats-- indicating the small scale of\noperations. By number of fishermen, Sulawesi led with 30 percent, followed\nby Java with 27 percent, and Sumatra with 20 percent.\nProductivity figures reinforce the regional difference. An analysis of the\n1970 catch, for example, shows that the average catch per fisherman was\nlow\nan estimated 1.4 t per man. By region the average catch per fish-\nerman was 2.6 t in Sumatra, 1.2 t in Java, 6.2 t in Kalimantan, and 0.6 t\nin Sulawesi.\n3","Figure 1 - - A fishing boat and a fisherman on east Java\nreturn with their catch. In the background lies the\nisland of Bali.\nInland Fisheries:\nInland fisheries produce an estimated 430,000 metric t per year. About 73\npercent of this catch is landed in natural, open waters such as rivers and\nlakes, 12 percent in brackish waters, 10 percent in fish farms, and 5\npercent in rice paddies.\nWhile inland fisheries are found almost everywhere in Indonesia, the\nprincipal production areas are in Kalimantan, South Sumatra, and South\nSulawesi in Lake Tempe. Principal varieties harvested include: carp, cat-\nfish, gourami, snake-head, and tilapia.\n4","Figure 2. - - Carp being placed into baskets for transport to\nfish breeding ponds, at the Tjinindi fish culture\nfacility on Java Island.\nFish cultivation is carried out in brackish waters, rice fields, and ponds;\nmainly on Java and South Sulawesi. The total area committed to fish culture\nin 1971 was 290,403 hectares, including 36,167 ha of fresh water ponds,\n70,437 ha of paddy fields and 183,799 ha of brackish water ponds. The\nprincipal species cultured in Indonesia is milkfish. The annual production\nper hectare is 200 to 400 kilograms, which is considered very low.\nFish cultivation in rice paddies is currently being encouraged by the Govern-\nment as a source of increased supplies for the rural areas. Emphasis is\nbeing placed on the culture of carp, gourami, and tilapia.\n5","COMMERCIAL CATCH\nAccording to the Directorate General of Fisheries, production of fish\naccounts for 4 percent of the Indonesian Gross National Product (GNP).\nOfficers at the Directorate General are optimistic that this percentage\nwill increase in the future, based on the large potential resource and the\ncurrent low level of use.\nOfficial statistics for the period 1968-72 indicate an increasing catch\nof marine species with a generally unchanged catch of inland species.\nProduction for the period has increased at about 2 percent per year.\nTable\n2 provides figures on the growth of the inland and marine fisheries.\nTable 2. - - Indonesia's fisheries catch, 1968-72\nYear\nCatch by fishery\nTotal\nMarine\nInland\nMetric t\n1972\n838,475\n429,300\n1,267,775\n1971\n820,447\n424,108\n1,244,555\n1970\n807,391\n421,121\n1,228,512\n1969\n785,344\n429,055\n1,214,399\n1968\n722,511\n436,528\n1,159,039\nNote: Figures for 1972 are preliminary. Data\non the 1971 catch are revised estimates.\nDuring the period 1966-71 the increased catch of marine species has been\noffset by decreased landings of inland species. Many factors have caused\nthis decrease in inland production. Among these are:\n1. Alluvial deposits have caused fish ponds to fill up or be- -\ncome shallow.\n2. Insecticide runoffs have killed an increasing number of fish.\n3. Logging industries have grown, resulting in water pollution\nand draining away fishermen to new fields of employment.\nThis is especially true on Kalimantan where the logging in-\ndustry has grown rapidly.\n4.\nInsufficient development of fish farming techniques.\n5. Limited supply of select fry from fish hatcheries.\n6","The marine fisheries, although expanding, are also faced with many problems\nmost of which are shared by the inland fisheries. These include:\n1. Primitive gear used by the fishermen.\n2. Fishing is confined to areas close to the shore.\n3. Limited production, storage, processing, and transportation\nfacilities.\n4. Inability of poor fishermen to purchase modern fishing gear.\nPRODUCTION AND MARKETING OF FISHERY PRODUCTS\nProduction:\nThe Directorate General of Fisheries has only recently begun to collect\ninformation about processed fish products, and it hopes to make these data\navailable in the next few years. Table 3, however, shows data from an\nUNDP/FAO paper\nTable 3. - - Methods used for processing fish, 1971\nSpecies\nMethod of production\nTotal\nFresh\nSalted\nSmoked\nCooked\nCanned\nFrozen\nPercent of total\n-\nShrimp\n24\n30\n46\n100 %\n-\n-\n-\nMackerel\n45\n35\n15\n2\n3\n100 %\n-\nSardine\n4\n72\n4\n13\n7\n100 %\n-\nSnappers\n32\n67\n1\n100 %\n-\n-\n-\nReef fishes--\n20\n78\n2\n100 %\n-\n-\n-\nJack mackerel-\n6\n18\n69\n7\n13\n100 %\n-\nTuna\n30\n35\n5\n7\n1\n100 %\n1\nOther\n9\n77\n5\n7\n1\n1\n100 %\nSource: Magnusson, M.R. \"Marketing of Fish in Indonesia, 11 UNDP/FAO\npaper, 1972.\n7","Marketing:\nIn Indonesia the fish catch is traditionally sold through auctions at\nnumerous landing points or at collection stations. These are often\nfar from the consumption centers, and the auction is only the first step\nin\na complicated chain of marketing activities. The island of Java, for\nexample, produced about 22 percent of the total catch in 1971, yet about 67\npercent of Indonesia's entire population is located on that one island. The\nremainder of the catch is produced by fishermen living in the outer islands\nfar from the main markets; more than 580,000 metric t of fish must there-\nfore be transported from the producing areas to the principal markets in\nWest and Central Java.\nThe marketing of fish in Indonesia is organized by region. In each region\nthere is a highly systematized chain of subcollectors, collectors, wholesalers,\nretailers, and fish peddlers. The whole chain is controlled by a very\nsmall group of influential traders who arrange for licenses, and transportation\nof the fish to the market and who provide the sources of credit for the\nfishermen. In West and Central Java the marketing chain is controlled by\ntraders in Djakarta and in Bandung. It is almost impossible to compete with\nthe marketing chain, which has evolved over a period of about 50 years.\nFigure 3. - - A fish market in Bandung on Java Island.\n8","Marketing of salted-dried fish:\nThe marketing of fish and the consumption habits of the Indonesian people\nhave been strongly influenced by the coast cargo vessels which have\ntraditionally brought goods from Java to the outer islands. These vessels\nrequired cargo for their return trips to Java, and because salted-dried\nfish was plentiful and easy to ship, it fast became one of the most commonly\ntransported products. Because salting was the only way to preserve the fish\nuntil it reached distant markets and because the fish can be stored in a\nsalted or dried form for a long time, this fish product is available at all\ntimes in practically any market.\nOver the years, therefore, the bulk of Indonesia's fish catch has been sold\nas heavily salted-dried fish. These fish are transported in straw and tree-\nleaf covers in bundles of various sizes and shapes. Some of these bundles\nweigh more than 100 kilograms when shipped from the outer islands to Java.\nWhen caught off the Java coast, the fish are processed and then packed in\nsmaller straw baskets or are sold in bulk without any covering.\n4. - - Fish being dried in the sun.\nFigure\n9","Marketing of fresh or frozen fish:\nFresh or frozen fish must be marketed by special trucks, which are not\nreadily available in Indonesia. The cost per ton of transporting iced fish\nis many times greater than that of transporting salted-dried fish, which\nusually moves by uninsulated truck or rail.\nIce is most commonly used in Indonesia to preserve the quality of the catch\nas it is transported by truck from the coastal landing sites to the inland\nmarkets. It is also utilized to preserve the catch that is shipped from\nKalimantan and Sumatra to the large coastal cities on Java, and on a small\nscale at the auction markets, but rarely aboard small fishing crafts or\nat the retail markets.\nThe limited use of ice is not only due to its lack of availability, but also\nto cost and other factors:\n1. Most fishing boats are too small to hold ice boxes. Fisher-\nmen believe that ice is too costly (US$11 to $18 per ton)\nand that it is not necessary to use.\n2. Many auction market personnel do not know how to use ice to\npreserve the fish.\n3. Retail stores and peddlers do not use ice because they must\ndisplay all the fish so customers can easily inspect them,\nand because the ice melts rapidly under the tropical sun.\nConsequently there is a great deal of spoilage in the sale of fresh fish\nin Indonesia.\nIn a recent interview the Minister of Agriculture, Thoyib Hadiwidjaya,\nstated that Indonesia's fishing industry had been based on the pattern of\nmarketing salted fish for centuries. He indicated that this should be\nchanged and that the marketing of fresh fish should be given priority status\nin Indonesia's development program. Hadiwidjaya called for the establish-\nment of a \"cold chain\" starting with the motorization of fishing boats, the\nconstruction of cold storage in fishing harbors, the use of refrigerated\ntrucks, and the building of cold storage areas in the interior. The\nIndonesian Fisheries Cooperatives Center has been given the responsibility\nof coordinating the execution of the \"cold chain\" plan, and it has been\ngranted approximately $482,000 in credits to begin the project.\nAccording to a press announcement issued on November 9, 1973, by the Director-\nate General of Fisheries, there are 22 cold storage plants with a capacity\nof 345 metric t scattered throughout the country. Sumatra has 5 cold\nstorage areas with a capacity of 55 metric t; Java 12 with 115 metric t;\nKalimantan 3 with 150 metric t, and Sulawesi 2 plants with a capacity of\n25 metric t.\n10","The same press announcement reported that 20 fish cold-storage facilities\nwith a total capacity of 5,132 metric t have been constructed under the\ndomestic and foreign capital investment laws. Sumatra has 3 of these cold\nstorage facilities with a capacity of 1,050 metric t; Java 11 with a\ncapacity of 3,267 metric t; Kalimantan 1 of 275 metric t; Sulawesi with\na 90 metric t capacity; the Moluccas 2 with a 200 metric t capacity, and\nIrian Jaya has 1 of 250 metric t.\nCredit:\nThe large traders play an important role in the lending of money or credit\nto the Indonesian fishermen. These fishermen generally own a small sailing\nboat and sometimes have a small piece of land. This group has only its\ncatch to offer against debts. This is the point where the trader has\nestablished himself. He offers a package deal to the fishermen, covers the\nmost critical gaps in their needs, is most competent to ascertain their\nability to pay, and is able to collect immediately after the fishermen\nreceive payment for their catch or is able to make arrangements to receive\nthe whole catch. This places him at the heart of the credit business, and he\nis thus assured of securing a steady supply of fish. Trader credit is\nfinanced by wholesalers or large dealers. Collectors and dealers depend\nfinancially on these large traders and use the money they receive to give\ncredit to the fishermen. Very high interest rates (up to 120 percent per\nyear) and the very low landing market prices for fish make this arrange-\nment very difficult for the fishermen.\nOperators of large fish culture facilities and owners of large, powered\nvessels offer acceptable risks, and private and/or governmental credit\ninstitutions are generally willing to finance these groups.\nCONSUMPTION OF FISHERY PRODUCTS\nIndonesians are, in general, fond of fish and receive a large part of their\ntotal animal protein from this source. However, substantial regional\ndifferences exist in the consumption of fish. Some regions have relatively\nhigh per capita consumption of fish, while others have very low consumption.\nThe table also shows how the annual consumption of fish varies in other parts\nof Indonesia.\nTotal fish landings in 1971 amounted to 1.2 million metric t., round weight.\nThis suggests that the total per capita consumption of fish in Indonesia\nis 10.5 kilograms, round-weight per year. The average per capita income of\nthe Indonesians is about Rupiah 41,500 (US$100.00) per year. The cost of\nfish in Indonesia is reportedly about $0.48/kg which means that on the\naverage the Indonesian spends about $5.04 per year on fish; this is about 5\npercent of his income for fish alone!\n11","According to a survey by the Djakarta municipality, the larger a person's\nincome, the greater his consumption of fish. The survey revealed that\npeople with an income of Rupiah 60,000 ($144 per year consumed 12.62 kilo-\ngrams of fish annually, whereas those in the Rupiah 60,000 to 120,000\n($144-289) salary range ate about 15.24 kilograms per year and those with\nhigher incomes ate 25 kilograms. Naturally fish consumption is also\ninfluenced by other factors, such as taste, current prices, and habits.\nFOREIGN TRADE\nExports:\nDuring the period 1968-72 the quantity of fish being exported has increased\n100 percent while the value has increased by 1,077 percent. Frozen shrimp\nis Indonesia's most valuable export accounting for some $28 million out of\ntotal fishery exports of $33 million.\nThe leading export markets for Indonesia's fish products are Japan, the\nUnited States, Hong Hong, Singapore, the Netherlands, Malaysia, and France.\nOther export destinations include Germany, Belgium, Italy, and Canada.\nExports to the United States in 1971 were $1,304,583 and included $871,597\nworth of frozen shrimp, $100,397 of frozen frog legs, $15,927 worth of\nfresh-frozen fish, $3,676 worth of ornamental (aquarium) fish, and $312,986\nworth of other kinds of fish or fish preparations.\nImports:\nDuring the period 1968-72, Indonesian imports of fishery products increased\nfrom $507,000 to $1,458,000, an increase of about 287 percent. Canned fish\nand fresh-frozen fish were the two leading imports during the period. The\nlatest statistics showing imports of fish products are for 1971, and they\nindicate that the leading suppliers of fish for Indonesia were Japan,\nAustralasia, Singapore, and Malaysia. Imports from the United States totaled\n$9,097 in 1971. This included $7,259 worth of prepared (frozen, smoked, or\nsalted) fish, $1,039 worth of canned fish, and $799 worth of crustacean or\nmollusk products.\nNote: Statistical tables on Indonesia's fishery trade are available in\nFFL 72-15, \"Fisheries of Indonesia, 1971.\"\n12","consumption/\nAnnual fish\n2.6\n11.9\n9.5\nperson\n17\n12\n10\n10\n10\nKg\nFish consump-\n442D a\n288D\n70S\n238S\n38S\n20S\n70D\n100S\n1,266\ntion\nMagnusson, M.R., , Data from \"Marketing of Fish in Indonesia\". UNDP/FAO Jakarta Paper 1972.\nTable 4. -- Fish production and consumption, 1971, wet fish equivalent\nIrian\nWest\n3\n26\n29\nTeng-\nNusa\ngara\nSula-\nwesi\n29\n65\n4\n32\nto consumer areas\nmantan\nShipped from processing areas\n74\n180\n13\nKali-\n267\nSuma-\ntra\n201\n201\nThousand t\nEast\nJava\n20\n20\nCentral\nJava\nWest\nJava\nAverage consumption per person 10.55 kg.\nFish production\naD = Deficit area S = Surplus area\n140\n50\n77\n439\n305\n165\n49\n41\n1,266\nPopulation\nMillion\n26\n24\n27\n20\n4\n10\n2\n7\n120\nNusa Tenggara\nCentral Java\nKalimantan\nMaluku and\nWest Irian\nWest Java\nEast Java\nConsumer\nSulawesi\nSumatra\nTOTAL\narea","DOMESTIC AND FOREIGN INVESTMENT IN FISHERIES\nDomestic:\nAccording to the Directorate General of Fisheries, 8 Indonesian firms have\ninvested a total of $3,918,580 to date in Indonesia's fisheries, under the\nDomestic Capital Investment Law of 1968. Although these 8 firms are listed\nas being domestically owned and operated, an article in the July 1973 issue\nof Warta Ekonomi Maritim Review revealed that much of the the capital for\nthese firms has actually been supplied by Japanese firms and that some of\nthese companies have even invited Japanese experts to manage their operations.\n1. P.T. Surya Sakti. Established in 1969, the firm is located at Jalan\nBenjai, Medan. The firm has invested a total of\n$660,241 to date. The company engages in fishing, mainly for shrimp, off\nthe east coast of northern Sumatra in the Strait of Malacca. The company\ncatches, processes, trades locally, and exports fish and shrimp. It owns a\ncold storage facility in Belawan.\n2. P.T. Pumar. Established in 1969, the firm is located at Jalan Lautze,\n34-87, Djakarta. Total investment to date is $715,662. The\nfirm catches, processes, trades, and exports shrimp. It operates in Cirebon,\nTegal, Semarang, Surabaya, Djakarta, Cilacap, Lampung, Jambi, and Pelembang.\n3. P.T. Nichimayan. Established in 1971. Total investment of $417,465.\nCatches, processes, and exports tuna and smoked fish.\nOperates in the Sunda Strait and West Sumatra.\n4. P.T. Semarang Coldstorage. Established in 1969. Located on Jalan Empu\nTentular 94, Semarang. Total investment of\n$436,447. Catches, processes, trades, and exports shrimp. Firm operates in\nKalimantan, Irian Jaya, Central Java, and Tanimbar Island.\n5. P.T. Hasikin Jaya. Established in 1971. Located at Jalan Tanah Abang.\nInvestment of $380,916. Catches, processes, and\nexports shrimp. Operates in the waters of the Molucca Islands and in Irian\nJaya.\n6. P.T. Maprodin. Established in 1971. Located at Jalan Tiang Bendera 28,\nDjakarta. Total investment is $915,738 Company catches,\ntrades, and exports shrimp. Operates around Molucca Islands and in Irian Jaya.\n7.\nP.T. Bonecom. Established in 1968. Located at Jalan Sulawesi, Unjung\nPandang, Sulawesi. Total investment of $317,111. Company\nengages in shrimp culture and it catches, processes, trades, and exports fish\nand shrimp. The company operates in South Sulawesi, the Molucca Islands, and\nin Irian Jaya.\n8. P.T. Dharma Mulya. Established in 1972. Located at Jalan Kali Besar\nBarat 2, Djakarta. Total investment is $75,000.\n14","Company collects and exports shrimp and other sea products. It operates in\nWest Kalimantan, South Sumatra, West Java, and in Djakarta.\nForeign:\nThe Japanese are the most important foreign investors in the fisheries of\nIndonesia. The following list of 11 Japanese fishery firms operating in\nIndonesia provides general backgrounds on each firm:\n1. P.T. Misaya Mitra. Established in December 1968 with a total investment\nof $1.7 million. The firm is a joint venture\nbetween Toho Suisan (90%) and P.T. Pelindo-Raja (10%), which fishes for\nshrimp in the waters off South Sumatra. The company began with 3 shrimp\ntrawlers and planned to expand their fleet to between 20 and 30 vessels.\nThey reportedly have employed 47 Japanese and 120 Indonesian nationals.\n2. P.T. Toyo Fishing Industry Company (TOFICO) : Established in September\n1969. TOFICO is a direct\ninvestment project (100% ownership) of the Toyo Menka Company. The Company\nhas invested $2.2 million into this operation. The firm reportedly operates\nwith 2 motherships and 11 shrimp trawlers off the coast of Central, South\nCentral, and West Kalimantan. Reportedly the firm employs 143 Japanese and\n156 Indonesians.\n3. P.T. West Irian Fishery Industries. Established in May 1970 with a\ninvestment of $2.3 million. Nihon\nSuisan (50%), Mitsubishi (20%), Nampo Kaihatsu (20%) together with P.T.\nPerikanan Modern (10%) form the joint venture. The Company fishes for\nshrimp with 3 chartered vessels and 6 company-owned vessels in the waters\noff West Irian. It is believed that 4 additional vessels have been added\nto this fleet. The firm reportedly employs 140 Japanese and 69 Indonesians.\n4. P.T. Irian Marine Product Development. Established in June 1970 with a\ntotal investment of $1.4 million.\nThis shrimp fishing joint venture is owned by Nihon Suisan (30%), Hokoku\nSuisan (30%), Nissho Iwai (20%), and P.T. Kasuari (20%). The venture fishes\nwith 7 trawlers in waters off Irian Jaya and reportedly employs 138 Japanese\nand 28 Indonesians.\n5.\nP.T. Nusantara Fishery. Established in December 1970 for $1.2 million.\nThe company is a joint venture between Taiyo\nGyogyo (40%), Mitsui and Co. (40%), and P.T. Emdece Marine Development\nCorporation (20%). They reportedly operate 6 shrimp trawlers off Irian Jaya.\n6. P.T. Nina Kartika. Established in 1971 with $2.1 million. This is a\njoint shrimp venture between Kyokuyo (80%) and the\nCentral Indonesian Army Cooperative (20%). The company operates 8 shrimp\ntrawlers off Irian Jaya and around the Molucca Islands.\n7. P.T. Central Java Marine Products Company. Established in May 1971.\nTotal investment to date has\nbeen $425,762 out of a committment of $1.1 million. Sumitomo Shoji (90%)\n15","and N.V. Hadji Mohamed Sulhan of Semarang are the two partners. The company\nis engaged in the collection and export of fish to Sumitomo in Japan. The\nventure reportedly operates a 150-ton cold storage facility.\n8. P.T. Indonesian Fisheries Company. Established in September 1971. The\nfirm is involved in Skipjack fishing\nwith 4 vessels off the Celebes. Hoko Suisan, Toyo Menka, and the Indonesian\nCentral Fisheries Corporation (INCECOP) are the partners.\nP.T. East Indonesian Fisheries Company. Established in March 1972\nwith\n9.\na commitment of $1.3 million.\nThis skipjack fishing venture involves Nichiro (60%), Mitsubishi (20%), and\nthe Indonesian Fisheries Corporation (20%). The company operates one 700-\nGRT reefer, one 400-GRT carrier and five 100-GRT skipjack vessels. The\nfirm also has a 500-ton capacity cold storage plant with a 5-ton/day ice-\nmaking capacity. The firm fishes out of Ternate on Halmahera Island.\n10. P.T. Asia Marine Products Ltd. Established in March 1972 with an intial\ninvestment of $250,000. Nihon Hogei,\nKanematsu-Gosho Ltd. and the Bone Commercial Company are the partners. The\nJapanese own 44.2% of the operation which involves shrimp fishing out of\nMacassar with four 100-GRT trawlers. The firm also plans to build a 220,000\nsq. meter pond in which they hope to raise 200 tons of shrimp.\n11. P.T. Maluku Pearl Development. This firm has also been identified as\nthe Arafura Pearl Company and as the\nFuji Enterprise Company. It reportedly is a joint venture between the P.T.\nCora Cora (50%) and the Arafura Pearl Company Ltd. (50%). The company is\nengaged in the culture of pearls around the Tanimbar, Kai, and Aru Islands.\nIn late 1972 it was reported that the Marubeni Corporation and the Mantrust\nCompany of Indonesia would build an industrial complex to process fish in\nIndonesia. No further developments have been reported on this proposed\ncomplex.\nIn addition to the Japanese investments in the Indonesian fisheries there\nare 2 United States firms involved with the Indonesians. They are:\nNorth Star Food Products Co., Inc. This firm maintains a representative\n1.\noffice in Djakarta for the export of\nIndonesian seafoods to its parent firm in New York.\n2. P.T. Trifood Indonesia. This is a joint venture operation between\nTriland Equiries Ltd. and its Indonesian\npartner P.T. Upernas.\nForeign Investment Procedures:\nForeign investment in Indonesian fisheries is controlled by the Foreign\nInvestment Law of 1967 and by regulations established by the Directorate\nGeneral of Fisheries. U.S. firms interested in investing in Indonesian fish-\neries should first contact the following agencies:\n16","1. A. R. Shoehoed\nCoordinator for Investment Promotion\nCaptial Investment Coordinating Board\nJalan Taman Cut Mutiah, 7\nDjakarta, Indonesia\n2. Nizam Azchman\nDirector General\nDirectorate General of Fisheries\nDepartment of Agriculture\nJalan Salemba Raya 16\nDjakarta, Indonesia\nInitial personal contact with above-listed officials is recommended, for\nthey are in a position to provide in-depth information on the feasibility\nof investment in the Indonesian fisheries.\nIf an applicant's project is considered feasible, he will be requested to\nsubmit a foreign capital investment form---called \"Form A\"--- to the Capital\nInvestment Coordinating Board. A copy of the form should also be sent to\nthe Director General of the Fisheries, together with a basic joint enter-\nprise agreement and background information on his company. The Board will\nreview the applicant's form with the Directorate General of Fisheries and\nnotify the applicant immediately of the decision of the Board.\nThe applicant may then apply for permission to make an exploratory fishing\nsurvey (if the Directorate General of Fisheries deems it necessary to do\nso). This request should be sent to the Director General, but surveys are\nactually made after consultation with the Fisheries Research Institute of\nthe Directorate General of Fisheries. Therefore, an approved survey is\nundertaken jointly between the Directorate General of Fisheries and the\napplicant in accordance with the survey agreement concluded between the\nparties concerned.\nIf the first form is approved, then the applicant will be requested to\nsubmit a more detailed project proposal called the foreign investment\napplication form (or \"Form B\").\nPending a decision on his second application, the prospective investor\nshould contact a notary in Indonesia for the purpose of drawing up a notarial\nact for the establishment of a corporate body (limited liability company).\nFollowing the review of the second application by the Capital Investment\nCoordinating Board, which will have a representative of the Directorate\nGeneral of Fisheries participating in its deliberations, the Chairman of the\nBoard will forward his consideration in a written recommendation to President\nSoeharto for his approval. If the President approves the proposed invest-\nment, then the Government Department involved (Department of Agriculture,\nDirectorate General of Fisheries), coordinated by the Capital Investment\nCoordinating Board, will issue the appropriate decisions and permits to\nenable the application company to operate. (The decisions and permits will\n17","actually be forwarded to the applicant by the Capital Investment Coordinat-\ning Board's Coordinator for Administration and Control).\nOther useful data for the prospective invester are contained in the follow-\ning excerpt (verbatim) of an article in the July 1973 issue of the magazine,\nWarta Ekonomi Maritim Review:\nWith regard to foreign investment, the Directorate General of Fisheries\n11\nissued a directive that ventures in this field should all be joint ventures\nand not straight investments, because foreign investment in fishing does not\nmean that we want our seas to be outfished by foreigners, but that on the\nother hand, we should make use of their skills and technical know-how to\nhave our own technical know-how developed within the shortest possible time.\n\"Strict requirements are applied to foreign capital, like:\nA11 new enterprises should be integrated enterprises, namely that\nthey are obliged to build cold storage on shore and to have an in-\nvestment plan for a least 3 years. Before the cold storage is finished a\nmust be deposited with the bank as a guarantee and if the\nsum of money\nstorage is finished within the prescribed time the money will be returned.\nBut if within 3 years this storage has not yet been built the money shall\nbe paid to the Ministry of Finance.\nThe cold storage must accept the products of the local fisher, pro-\nvided that it is intended to be exported.\nThe cold storage should only be intended to meet the export market\nin order not to ruin the domestic market which is to be met by the\nlocal fishermen.\nControl on administration, operation and exports shall be exercised.\nThe ships transporting the fish should fly the Indonesian flag.\nThe working period of the foreign capital will be between 10 and 20\nyears. At the end of that period the shares must all be sold to the\npartner.\nThe candidate investor must conduct a survey in collaboration with\nthe Seafisheries Research Institute (LPPL). The survey expenses\nshall be borne by the foreign investor and recently there was also the\nregulation that after the survey is made, cancellation of the investment\nshall be allowed. This is the result of the fact that many ships have run\naway after making surveys while also catching fish.\nThe survey data shall become the property of the State and not of\nsaid enterprise.\n18","FOREIGN TECHNICAL ASSISTANCE AND AID\nTechnical Assistance\nSeven foreign technical assistance projects with a total value of $4.8\nmillion were undertaken in Indonesia since the beginning of the country's\nFirst Five Year Economic Development Plan in 1969.\nUNDP/FAO Assistance\nA UNDP/FAO group works with Directorate General of Fisheries. This\ngroup works on three large-scale projects: (1) Fisheries Development and\nManagement; (2) Marine Fisheries Training; and (3) Brackish Water Fish\nTraining Project at Jepara.\n(1) Fisheries Development and Management\nThis new project is designed to provide means, expertise, and\nequipment to assist the Government in its endeavors to modernize\nand expand the fishery industries of Indonesia. This project be-\ngan in April 1973 and is not yet fully operational. The UNDP con-\ntribution to this project is $1,227,900, nine experts, and 24 man-\nmonths of consulting services. This project will be completed in\nDecember 1976.\n(2) Marine Fisheries Training Project\nThe long-range objectives of this project are to provide qualified\npersonnel required for fishing vessel operations, fish catching,\nprocessing, and management in the fishery industry in order to\ncontribute to Indonesia's objectives for substantial increases in\nmarine fishery production.\nSome of the more important immediate objectives of this project are:\na. To strengthen the education of students at the Academy of Fisheries\nwith an assured practical orientation.\nb. To strengthen further the training given at the Senior Fisheries\nHigh School and Fishermen's Training Center at Tegal, aiming at\nattaining 500 to 600 graduates yearly.\nC. To assist in establishing a training center in Tegal for training\nin the field of processing (with emphasis on refrigeration), with\n50 graduates per year.\nd. To assist in establishing a Fishermen's Training Center at Sorong,\nwith 120 graduates per year.\ne. To provide training at Tegal for key personnel of the Directorate\nof Fisheries, which will establish and run the Fishermen's Training\n19","Centers at Menado, Medan, Singaraja, Ambon, and Sorong, and supply\nbasic training equipment for these centers.\nThis project is investment-support oriented and is intended to create a\nfavorable climate for investment by assuring the availability of qualified\npersonnel for fishery enterprises. The UNDP contribution will be $ 454,200,\n14 experts, and 12 months of consultation. This project began April 1, 1973,\nand will be completed in December 1976.\n(3)\nBrackish Water Fish Training Project at Jepara\nThe long-range objectives of this project are to contribute to a\nsubstantial improvement and increase in the productivity of the\ninland fishery industry by the rehabilitation of existing\nfacilities, creation of new facilities, development and expanding\nutilization of new and improved techniques, and creation of an\nextension capability in the culture and production of brackish\nwater shrimps and milkfish. The UNDP contribution to this project\nis $699,400 and six experts. This project began April 1, 1972, and\nwill be completed in October 1974.\nForeign Aid\nThe International Development Association financed the Aer Tembaga project;\nthe Sabang and Benoa project was financed by the Japan's Overseas Economic\nCooperation Fund; and the Asian Development Bank the Riau project.\nVESSEL AND GEAR\nThe Indonesian report, Fisheries Statistics of Indonesia, indicates that\nthere were 284, 707 fishing boats in Indonesia in 1972. This included\n277,439 nonpowered boats, most of which were sailboats, and 7,268 powered\nboats. The number of power boats in Indonesia increased 27 percent from\n1968 to 1972.\nTable 5 shows the types and locations of fishing boats in Indonesia in 1971:\n20","Number of fishing boats by type and island, 19711/\nTable 5\n-\n.\nBoats\nPowered\nTotal\nIsland\nNonpowered\nNumber\n43,249\n42,481\n768\nJava\n4915\n42,818\nSumatra\n37,903\n19,044\n18,021\n1023\nKalimantan\n103,954\n104,142\n188\nSulawesi\n26,494\nBali-Nusatenggara\n26,459\n35\n48,844\n49,091\n247\nMoluccas - Irian Jaya\n1/ Source: Directorate General of Fisheries, Revised statistics.\n(The totals in this table differ slightly from those contained\nin the latest tabulation of Fisheries Statistics of Indonesia).\nThe most widely used fishing gears in Indonesia are bottom trawls, gillnets,\nseines, pole-and-line, troll lines, longlines, and stationary gear such as\ntrap nets.\nFigure 5. - - Fishing gear used by fishermen in Djakarta's\nharbor\nTable 6 shows the number, sizes and types of fishing gear and vessels used in\nthe different provinces of Indonesia.\n21","motor-\nLarge\nboats\nized\n10\n50\n77\n24\n20\n15\n196\n4\n5\n32\n1\n22\n100\n200\n500\n140\n200\n48\n1,188\n340\n402\n299\n400\n1,441\nLarge\nboats\nMedium\nmotor-\nboats\n30\n120\n240\n70\n60\n23\n543\n5\n3\n72\n10\n90\nized\nMedium\nboats\n5,300\n4,500\n3,000\n1,200\n4,000\n1,200\n19,200\n2,000\n4,000\n2,286\n2,050\n10,336\nsize\nTable 6. - - Indonesian fishing gear and vessels, by\nmotor-\n750\n105\n5,725\n450\n74\n262\n300\n1,086\nSmall\nboats\n220\n4,200\n150\n300\nized\nnumber, type, and province, 1971\nSmall\nboats\n5,800\n6,900\n6,000\n2,000\n8,500\n1,900\n31,100\n31,000\n25,400\n18,000\n36,000\n110,400\nOther\n2,000\n8,000\n8,000\n1,200\n19,000\n4,827\n43,027\n30,000\n18,400\n13,500\n20,000\n81,900\ngear\nLines\n10,000\n5,000\n8,000\n2,000\n21,000\n3,596\n49,596\n3,500\n10,000\n8,000\n18,000\n39,500\n2,600\n3,437\n3,000\n623\n7,700\n1,257\n18,617\n1,950\n3,370\n1,800\n3,800\n10,920\nGill\nnets\n300\n1,500\n2,000\n655\n2,000\n448\n6,903\n268\n1,300\n1,326\n4,483\n7,377\nTrawls\nseines\n&\nCentral Kalimantan\nSouth Kalimantan\nWest Kalimantan\nEast Kalimantan\nNorth Sumatra\nSouth Sumatra\nREGION I\nREGION 2\nLampung\nTotal:\nJambi\nTotal\nAceh\nRiau\n22","motor-\nLarge\nboats\nized\n80\n-\n5\n85\n-\n-\n-\n10\n-\n-\n-\n-\n-\n-\n-\n10\nLarge\nboats\n200\n100\n1,200\n1,050\n100\n20\n2,670\n550\n300\n170\n200\n100\n200\n600\n2,120\n-\nMedium\nmotor-\nsize\nized\n4\n150\n20\n174\n-\n-\n-\n25\n-\n-\n-\n-\n18\n-\n-\n43\nMedium\n8,600\n3,522\n4,000\n2,500\n5,000\n2,500\n26,122\n3,510\n1,500\n300\n1,500\n1,700\n1,300\n4,000\n50\n13,860\nboats\nsize\nmotor-\nSmall\nboats\nized\n100\n34\n370\n125\n13\n14\n656\n40\n4\n5\n150\n11\n19\n210\n439\n-\nSmall\nboats\n36,000\n13,891\n4,500\n6,279\n16,000\n9,000\n85,670\n24,000\n11,933\n600\n2,700\n8,100\n4,000\n28,000\n15,900\n99,033\n26,000\n2,558\n16,036\n8,440\n25,000\n1,300\n79,334\n8,725\n+30,000\n-\n-\n-\n-\n-\n-\n-\nOther\ngear\n47,954\n17,000\n7,980\n4,200\n13,000\n1,500\n91,634\n29,435\n+40,000\n-\n-\n-\n-\n-\n-\n-\nLines\nCont'd\n13,750\n300\n23,180\n12,200\n15,000\n750\n65,180\n+8,000\nGill\nnets\n-\n-\n-\n-\n-\n-\n-\n-\nTable 6\nTrawls\nSeines\n400\n452\n1,900\n1,030\n1,000\n50\n4,832\n4,226\n6,000\n-\n-\n-\n-\n-\n-\n-\n&\nSouth Sulawesi\nNorth Sulawesi\nCentral Java\nWest Sumatra\nSouth-East\nSulawesi\nTenggara\nTenggara\nWest Irian\nWest Java\nEast Java\nCentral 11\nEast Nusa\nWest Nusa\nREGION 3\nREGION 4\nBengkulu\nTotals:\nTotals:\nMaluku\nBali\n2:","EMPLOYMENT\nAccording to the latest available information the total number of fishermen\nin Indonesia is 860,800. This figure includes 590,100 full-time fishermen\nand 270, 700 part-time fishermen. In 1971, however, it was reported that\nthere were 893,761 persons classified as \"marine fishermen\" with 300,000 to\n400,000 additional persons believed to be in the inland fisheries. An\narticle in the July 1973 issue of the Warta Ekonomi Maritim Review indicated\nthat fishermen and their family members total 5 million people in Indonesia.\nA census of fishermen on Java, Sumatra, and Bali is scheduled to be taken\nby the Central Bureau of Statistics beginning in January 1974. The process-\ning and publication of the census data are expected to take 1 year.\nFigure 6. - - A typical Indonesian inland fisherman with his\nfamily. Hundreds of thousands of Indonesians\nare involved in similar fish culture projects which\nhelp the Indonesian's feed their families.\n24","FISHERIES AND THE 5- YEAR PLAN\nIndonesia's first Five Year Economic Development Plan 1969-74 for the fish-\ning industry had as its basic aim the achievement of a more rapid annual\nproduction (catch) increase. The following measures were cited as necessary\nin the Five Year Plan:\n1. To improve marine fishing equipment and methods.\n2. To increase domestic fish consumption and exports by catching\nmore tuna fish and shrimps.\n3.\nTo expand the scale of shrimp fishing by using modern equipment.\n4. To improve and extend fishing industry infrastructure and marketing.\n5. To improve credit institutions serving the fishing industry and\nexpand the supply of credit.\n6. To increase inland fishery production.\n7. To rehabilitate and improve existing fishing schools.\n8. To improve fish marketing facilities (storage and transportation).\nListed below is a table showing the fish production targets for the first\nFive Year Economic Development Plan and the actual production achievements\nduring the first 4 years of the Plan:\nTable\nFish Production targets and achievements,\n1969/70 - 1972/73\nTarget\nAchievements\nMarine\nInland\nMarine\nInland\nPeriod\nfisheries\nfisheries\nfisheries\nfisheries\nThousand tons\n1969/70\n898\n525\n723\n437\n1970/71\n1,003\n551\n785\n429\n1971/72\n1,085\n579\n807\n421\n1972/73\n1,200\n608\n820\n424\n1973/74\n1,331\n638\n-\n-\nIt can be readily observed from the above table that annual production\n(catch) of both marine and inland fish has fallen short of the target.\nNevertheless, considerable progress is being made in expanding production\nand, as indicated earlier, exports of fish have risen substantially in a\nvery short time.\nIn a paper \"Fisheries Development and Management in Indonesia\" delivered\nat the 1973 Technical Conference on Fishing Management and Development in\nVancouver, Canada, the Director General of Fisheries Cited the following\nas Indonesia's achievements in fisheries during the first Five Year Plan:\n25","the establishment of large scale fishing industries capable\n\"a.\nof exporting high value products such as shrimp, tuna and\nother species to an amount of $30-40 million annually;\nb. the establishment of marketing facilities for fresh fish\ndistribution in the most populated areas of Indonesia such\nas Java and Sumatra;\nC. the preparation of the artisanal (small-scale) fishermen\nphysically and mentally, up to a certain level of readiness\nfor takeoff toward self-sustained growth;\nd. the establishment of effective research systems capable of\nproviding basic and applied data leading to better resources\nmanagement;\ne. the establishment of effective education and training\nsystems capable of meeting rising demands for technically\nand managerially skilled personnel;\nthe establishment of fisheries cooperatives as an in-\nf.\nstitutional means in promoting the development of en- -\ntrepreneurship among the artisanal fisheries; and\nthe improvement of the Government's fishery services, both\ng.\nin Jakarta and the regions.\" 11\nIn another paper presented at the Working Session in Cisarua, West Java,\nof the Directorate General of Fisheries in July 1973, the Director General\nof Fisheries indicated that the overall strategy and targets established\nfor the first Five Year Plan would still be pursued in the Second Plan.\nThe Director General also listed the following as programs that would re-\nceive special emphasis in the Second Five Year Economic Development Plan\nbeginning in the spring of 1974;\n\"a. promotion and improvement of peasant fishery operations;\nb. a drive to expand exports;\nC. a campaign to improve fishery statistics;\nimprovement in the grade, packaging, labelling and packing\nd.\nof fish products and to improve their marketing; and\ne. improvement of the Government fisheries organization both\nin Jakarta and the regions.\"\n26","ORGANIZATION OF THE DIRECTURATE GENERAL OF FISHERIES\nListed below are the names, titles, and addresses of the key officials in\nthe Directorate General of Fisheries:\n1. Nizam Zachman\nDirector General\nDirectorate General of Fisheries\nJalan Salemba Raya 16\nJakarta\n2. A. Tjipto Wignjoprajitno\nSecretary\nDirectorate General of Fisheries\nJalan Salemba Rava 16\nJakarta\n3. Hadi Atmowasono\nDirector of Planning\nDirectorate General of Fisheries\nJalan Salemba Raya 16\nJakarta\n4. Drs. Sidarto\nDirector of Entrepreneurial Development\nDirectorate General of Fisheries\nJalan Salemba Raya 16\nJakarta\n5. R. Slamet Prajitno\nDirector for Production and Marketing\nDevelopment\nDirectorate General of Fisheries\nJalan Salemba Raya 16\nJakarta\n6. Latif Hasjim\nDirector of Information Elucidation\n(Extension Service)\nDirectorate General of Fisheries\nJalan Salemba Raya 16\nJakarta\n7. V. Soesanto\nDirector for Potential Resources and\nWildlife Protection\nDirectorate General of Fisheries\nJalan Salemba Raya 16\nJakarta\n27","8. Rustami Djajadiredja\nDirector of Inland Fisheries Research Institute\nDirectorate General of Fisheries\nJalan Sempur 1\nBogor\nSofjan Iljas\n9.\nDirector Fishing Technology Institute\nDirectorate General of Fisheries\nJalan Sasuit Tubun\nJatipetamburan\nJakarta\n10.\nMoh. Unar\nDirector, Marine Fisheries Research Institute\nDirectorate General of Fisheries\nJalan Krapu 12\nJakarta\n28","SOURCES OF INFORMATION USED IN THIS REPORT\n1. Interviews with several officers of the Directorate General of Fisher-\nies and UNDP/FAO Team.\n2. Facts and Figures, a 49-page booklet of statistics published by the\nDirectorate General of Fisheries, October 1972.\n3. Fisheries Statistics of Indonesia, a 20-page draft booklet soon to be\npublished by the Directorate General of Statistics.\n4. Paper on Fisheries of Indonesia by Gert Van Santen, UNDP/FAO Support\nTeam to Agricultural Planning in Indonesia, 1973.\n5. Preliminary draft of paper on Fisheries, Annex 10 to World Bank Mission\nJakarta Agricultural Sector Survey, May 1972.\n6. Warta Ekonomi Maritim Review, July 1973 Special Report on Fisheries\nof Indonesia.\n7. Paper on \"The Seafood Industry in Indonesia\" issued by the Chase Man-\nhattan Bank N.A., Jakarta, November 1971.\n8. Various clippings from Indonesian newspapers and news bulletins.\n9. Copies of speeches given by Nizam Zachman, Director General of Fisheries.\n29"]}