CONTACT : MAHMUD mahmudabuatifah@gmail.com

117

Abstract
The potential of Maritime Affairs and Fisheries owned by Indonesia
becomes a massive opportunity in producing various types of commodities
provided by natural resources such as the fishing fish, aquaculture, fishery
products, and ecotourism. Based on this, it is necessary to have synergy between
the government, the private sector and the community in managing marine
fisheries resources that exist today. Of course, with the existing potential, it will
become a challenge in its management that can guarantee the sustainability of
natural resources and the improvement of the people's economy. This paper
examines the opportunities and challenges of the fishing industry in Indonesia
using the input and output data of the Directorate General of Maritime and
Fisheries Resources Supervision, which are analyzed descriptively using tables
and graphs and journal reviews relating to the study.

ISSN : 2580-2410
eISSN : 2580-2119

Prospects of Fisheries Industry Development in Indonesia
Through Online Publication Media

Mahmud 1, Akriani Dewi Bau Sinrang 2, Andi Nur Apung Massiseng 3

1 Study Program of Public Relations, Faculty of Social Sciences, Economics and Humanities,
Cokroaminoto Makassar University, 90245, Jalan Perintis Kemerdekaan KM. 11
Tamalanrea, Kota Makassar Sulawesi Selatan, Indonesia

2 Study Program of Management, Faculty of Social Sciences, Economics and Humanities,
Cokroaminoto Makassar University, 90245, Jalan Perintis Kemerdekaan KM. 11
Tamalanrea, Kota Makassar Sulawesi Selatan, Indonesia

3 Study Program of Fisheries Agribusiness, Faculty of Fisheries, Cokroaminoto Makassar
University, 90245, Jalan Perintis Kemerdekaan KM. 11 Tamalanrea, Kota Makassar
Sulawesi Selatan, Indonesia

Introduction

Indonesia has considerable fisheries potential that includes inland fisheries and sea
fisheries. One of the advantages of the marine fisheries sector is that Indonesia is a
maritime country with the most significant sea area and the highest number of islands,
around 17 x 103, which are spread across the archipelago (Nurkholis et al., 2016). Based on
this, Indonesia has enormous potential from the fisheries sector, namely the cultivation and
capture sector, which is a mainstay in supporting the development of the fishing industry in
Indonesia and is one of the strategic economic activities that deserve to be developed.
Fisheries resources in Indonesia are very abundant because they have a very high level of
biodiversity (biodiversity).

OPEN ACCESS International Journal of Applied Biology

Keyword
fisheries industry, the
potential of fisheries,
aquaculture, fishing
fish, ecotourism
industry.

Article History
Received 11 November 2021
Accepted 30 December 2021

International Journal of Applied Biology is licensed under a
Creative Commons Attribution 4.0 International License, which
permits unrestricted use, distribution, and reproduction in any
medium, provided the original work is properly cited.

International Journal of Applied Biology, 5(2), 2021

118

Indonesia has several main types of commodities that are the mainstay of the
fisheries industry in fishing fish, such as shrimp, tuna, tuna and skipjack, squid, cuttlefish,
octopus and crab-crab, while in the aquaculture sector has fisheries commodities, namely:
seaweed, shrimp, milkfish, snapper, carp, tilapia, carp and catfish. These commodities are
the mainstay of exports in Indonesia at this time. The second position of the world is
occupied by Indonesia, being the largest producer of marine fisheries globally; it's just tha t
the production of marine fisheries has not significantly contributed to the economy. If seen
from the contribution of the marine fisheries sector only gives 2 per cent of the contribution
to the National GDP. By looking at this case, it becomes a sign that the management and
coordination between marine and fisheries planning and development are still very weak,
different if we apply appropriate management and coordination, then Indonesia is able to
produce the maximum potential of marine wealth that we have even equivalent to
developed countries. The tendency of the world community today to consume more fish is
cultivated than can consume fish caught. By seeing this phenomenon, fishing fish can be
managed sustainably by maximizing the potential of very large aquaculture (Ditjen PDS-KKP,
2017).

Innovation is the key to success in increasing competitiveness (Barney, 2002; Foss et
al., 2011, Hult, Hurley and Knight, 2004; Molina-Castillo and Munuera-Aleman 2009;
Shapiro, 2002; Rogers, 2003). Industrial development in Indonesia still has many limitations
in designing and creating sustainable innovation (Dhanani, 2000). Based on Indonesian
Marine and Fisheries Investment Data for 2017, it is known that the value of the production
of catches and aquaculture is around Rp. 1.23 Trillions, while the processing industry Rp.
2.29 Trillions. The highest value comes from the fisheries processing industry due to high
export market demand so that the development of the fisheries processing industry
continues to increase.

Materials
Potential of Aquaculture Industry

The fisheries sector plays an important role in the Indonesian economy through
increased income, diversification of livelihoods, supply of animal protein, and foreign
exchange earnings. This sector contributes 3.1% of total national gross domestic product
(GDP) and 21.0% of total agricultural GDP, creates around 6.4 million direct jobs for the
people of Indonesia, and obtains the US $ 4.2 billion dollars from food exports sea in 2012
and provided 54.8% of domestic animal protein supply (MMAF, 2013). Fish consumption per
capita in Indonesia has also increased, with annual consumption per capita increasing from
21.0 kg in 2003 to 33.9 kg in 2012 (Marine and Fisheries Statistics Book, 2012).

Fishing fish are currently the dominant source of fish in the domestic market, and
the primary source of nutrition is essential for many consumers who are below the poverty
line. The decrease in fish consumption because of rising prices will endanger the welfare of
the people of Indonesia. The study results highlight the importance of policies targeting
sustainable fisheries landings and sustainable aquaculture growth. Under the "Global
Maritime Fulcrum", the Indonesian government has taken drastic steps to limit foreign
fishing to increase domestic catches, including sinking foreign fishing vessels in its waters
and capturing fishermen (Connelly, 2015). However, given the limited resources and
concerns about the sustainability of fish stocks in Indonesia and the consequences that ma y
arise from climate change that are projected to have severe impacts on Indonesian fishing
fish, the government needs to prioritize managing fish in nature (Cheung et al. 2010).

International Journal of Applied Biology, 5(2), 2021

119

The potential of marine culture, consisting of the possibility of fish farming (snapper,
grouper, cobia); shrimp, molluscs (shellfish, pearls, sea cucumbers); and seaweed, with a
potential area of cultivation in Indonesia of 2 million ha (20% of the total potential of coastal
and marine waters within 5 km of the coastline) with a volume of 46.73 million tons per
year, and the potential for brackish cultivation (ponds) reaches 913,000 ha. For the
possibility of marine biotechnology, there are still great opportunities to be developed, such
as the raw material industry for food, the natural feed ingredients industry, and fish and
shrimp seeds (Lasabuda, 2013).

A development zone for aquaculture was created by the government where
intensification of production could be supported through investment in private hatcheries,
distribution and marketing channels for fisheries, training, information system
improvement, and support for product certification and access to capital (Nurdiana, 2006).
Nevertheless, aquaculture in Indonesia needs to grow substantially in the future. During the
projection period, an increase in aquaculture output will require expansion to occur only in
soils that do not result in the loss of important ecosystems, intensification of sustainable
agricultural practices and an increase in the efficiency of user inputs for production that is
ecologically feasible (Bostock et al., 2010). As producer prices increase over time, research
investment will also be needed to help farmers reduce production costs and remain
competitive. This investment must promote a major transformation of the aquaculture
system, policies, and investments that meet the blue economy's principles that align
development goals, natural resources, and environmental conservation (Adger et al., 2005).
Based on Table 1, it is known that the largest export value comes from the cultivation
sector, especially the shrimp commodity. The value is 35.84% with a volume of 197,433,608
kg. This shows that the shrimp aquaculture industry in Indonesia is still the prima donna and
still has opportunities for continued development because it is supported by research
related to disease control which is a major obstacle in the aquaculture industry.
Table 1. Value of Main Exports of Indonesian Fisheries Commodities

No Commodity Value (USD) % Value Volume (Kg) % Volume

1 Shrimp

1,742,119,193 35.84% 197,433,608 17.53%

2
Tuna- Tongkol -
Cakalang 713,919,147 14.69% 168,433,759 14.96%

3
Cumi-Stotong-
Octopus 554,594,192 11.41% 152,108,581 13.51%

4 Crab 472,962,123 9.73% 27,791,618 2.47%
5 Seaweed 291,837,226 6.00% 212,961,523 18.91%

6
Other
Commodities 1,085,479,049 22.33% 367,349,488 32.62%

7 Grand Total 4,860,910,930 100.00% 1,126,078,577 100.00%

Data source: Ditjen PDS-KKP, 2017

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120

Figure 1. Value and Volume Export of Aquaculture Raw Materials for 2015-2017
(Source: Ditjen PDS-KKP, 2017)

Based on figure 1, the largest aquaculture commodity in Indonesia in terms of export

volume is a seaweed commodity, but the highest export value is shrimp commodity. This
indicates that the export value of seaweed is low because what is exported is a raw material
or has not been processed, so that even though the export volume is high, the matter
remains low compared to shrimp.

Potential of Fishing Fish Industry

Indonesia has enormous fisheries potential. The maximum sustainable value (MSY)
of fishing fish resources is around 12.54 million tons per year. At the same time, the
potential that can be exploited (allowable catch) of 80% of MSY is about 10,032 million tons
per year. Based on catch data from 2012 to 2016 (Table 2), the value of catches continues to
increase each year but is still very low compared to the potential value of fishing fish that

100

200

300

400

2015 2016 2017

124 131 138

212 188 192

48 51 52

Export Volume of Aquaculture Raw Materials
(Thousand Tons)

Other Aquaculture
Commodity

Seaweed

Shrimp

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121

can be utilized. This shows that the potential for developing the fishing fish industry is still
huge.

Table 2. National Fishing Fish Production Value from 2012 to 2017

Year

Production
value

MSY Value Allowable catch

(thousand
tons)

(million tons/
year)

(million tons/ year)

2012 5.829

12.54 10.032

2013 6.105
2014 6.484

2015 6.678
2016 6.58
2017 6.04

Data Source : Ditjen PDS-KKP, 2017

Although the value of MSY is still far above the value of the production of catches,

specific fish species are already in the control stage of fishing due to the decreasing amount
in nature, for example is grouper.

South Sulawesi Province decreased export activity caused by a decrease in marine
fishery yields, which impacted the decline in grouper export results, thereby reducing
regional income. Along with this, coral reefs experienced a reduction in the area of coral
reefs, which affected the catch of coral fish, which decreased by 63 per cent (Sutinah,
Rahmatia, Seniwati & Kitta, 2017). In addition to production data, the magnitude of
opportunities for the development of the fishing industry can be seen from the value of
national fish needs. Based on the calculation of the national fish demand value (Figure 2), it
is known that federal fish consumption needs continue to increase every year. This indicates
that people are increasingly aware of the importance of fish as a healthier consumption
material. This trend is believed to continue to grow so that the development of the fishing
fish industry is needed to meet the needs of the national fish.

Figure 2. Data on fish consumption and national fish demand for 2012-2017

(Source: Ditjen PDS-KKP, 2017)

33,89
35,21

38,14
41,11

43,94
46,49

6,92 7,36 7,95
8,58 9,37

10,38

2012 2013 2014 2015 2016 2017

Fish Consumption
(Kg/Capita)

Fish Demand (Million
Tons)

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122

Figure 3. Value Export Of Fishing Fish In 2015-2017

(Source : Ditjen PDS-KKP, 2017)

The export value of Fishing Fish commodity Tuna-Tongkol-Cakalang (TTC) ranks

second after combining other fishing fish commodities. The fishing fish of the Tuna-Tongkol-
Cakalang (TTC) commodity is still below the MSY limit, so fishing fish can still be made,
which must be based on sustainability.

Potential of Fishery Product Processing Industry

Indonesia is one of the world's largest maritime and island nations, producing
hundreds of abundant fisheries commodities. Not surprisingly, seaweed and tuna products
rank first globally; similarly, crab and shrimp products occupy the second position.
According to 2015 Food and Agriculture Organization (FAO) data, China ranks first as a
shrimp producer globally. Various superior fishery products are scattered throughout the
archipelago. Shrimp production centres are in Sumatra and West Java. Crabs are spread in
Java, Sumatra and Kalimantan. The leading producers of seaweed are in the Sulawesi and
Nusa Tenggara regions. Meanwhile, tuna-producing areas focus on Papua, Maluku, and
North Sulawesi.

The total Indonesian fishery products in 2016 reached more than the US $ 2.9 billion.
During the five years from 2011 to 2016, the export value of Indonesian fishery products
grew 3.5% per year. The five largest importing countries of Indonesian fish products in 2016
were the US, Japan, China, Vietnam and Malaysia. Among the five, exports to China and
Vietnam experienced rapid development, while exports to Japan declined. 39.4% of
Indonesia's total exports to the world in 2016 were directed to the US, up from 31.5% five
years earlier. The Chinese market share rose from 5.3% to 9.4%, Vietnam from 4.5% to
6.7%, and Malaysia rose from 2.8% to 3.7%. Japanese market share fell from 27.0% in 2011
to 16.3% in 2016 (Ningsih. 2018).

Processed fishery products in the excellent category for export are Processed
Shrimp, Squid, Fish Meat, Crab. Those with the opportunity but not yet maximally fulfilled
are: Frozen Fish, Frozen Lobster, Albacore or Frozen Long Tuna Fins, Live eel, processed sea
cucumbers, and Frozen Mackerel. Processed fish products are determined using three four-
digit HS categories: extracts and juices of meat, fish or crustaceans (HS 1603); processed or
preserved fish (HS 1604); and processed or preserved crustaceans and molluscs (HS 1605).
Figure 3 shows that in these three categories, the export value of HS 1605 reached twice
that of HS 1604, while the export value of HS 1603 was not significant (Ningsih. 2018).

1000

2000

3000

2015 2016 2017

584 566 660
213 337

397

1.594 1.651
1.621

Export Value of Fishing Fish (USD Million)

Other Fishing Fish
Commudity

Cumi-Sotong-
Gurita

TTC

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Table 3. World Exports of Processed Fish Products by Country 2011-2016

No Importer Total Value (US $ Million)
Market share

(%)

2011 2012 2013 2014 2015 2016 2011 2016

1 AS 302.2 307.3 406.1 534.2 457.6 471.7 40.6 49.0

2 Jepang 129.3 147.7 132.3 144 122.8 122.3 17.4 12.7

3 Arab Saudi 33.2 53.5 59.4 55.3 61.2 57.2 4.5 5.9

4 Britania Raya 25.9 43.6 58.3 60.6 49.8 48.8 3.5 5.1

5 Belanda 36.1 29 49.8 60.1 19.3 27.6 4.8 2.9

6 Italia 3.2 3.5 18.0 25.9 29.9 25.5 0.4 2.6

7 Thailand 18.7 34.5 34.1 14.9 16.9 24.7 2.5 2.6

8 Australia 8.5 15.3 22.2 27.5 29.7 21.4 1.1 2.2

9 Jerman 39.3 27.5 36.2 35.5 18.0 15.0 5.3 1.6

10 Vietnam 1.9 1.5 2.1 3.2 2.1 11.5 0.3 1.2

11 Kanada 9.5 9.7 10.2 7.5 7.8 9 1.3 0.9

Other
Countries /
Regions in the
World 137.1 169.8 160.8 167.0 129.5 127.5 18.4 13.3

World Total 744.9 843 989.5 1135.7 944.7 962.3 100.0 100.0

Source : International Trade Centre. 2018

The total export value of Indonesian processed fish products in 2016 reached the US

$ 962 million. (See Table 3). The central destination countries for this product are the US,
Japan, Saudi Arabia, the United Kingdom and the Netherlands. In 2016, total exports to
these five countries accounted for 76% of Indonesia's exports to the entire world. This
represents a small portion (i.e. 0.9%) of Indonesia's total exports of processed fish products
and is lower than the share recorded in 2011 (Ningsih. 2018).

Potential of Ecotourism Industry

Marine and fisheries-based ecotourism in Indonesia has been developed into one
industry that needs special attention from all stakeholders, considering that tourism in this
sector can lead to domestic and foreign tourists. Ecotourism, being a solution to care for the
natural and cultural environment, can also minimize adverse effects on the environment,
besides visitors willingly pay to get a comfortable and quality vacation. In the current
conditions, many tourists are not satisfied with the existing ecotourism because of its
homogeneous nature. Increased human awareness of the importance of preserving nature
and culture is a significant factor that also determines the growth of ecotourism, so there
must be equality between social and cultural based on the tourist destination created
(Situmorang, 2007). In developing an ecotourism area, it must be based on local
communities empowered through the provision of education, social entrepreneurship and
how to preserve the existing culture that can have an impact on improving welfare and
improving education. The science of social entrepreneurship can educate local people to be
people who are responsible for improving people's lives by how to behave in protecting the
environment (Situmorang & Mirzanti, 2012)

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Ecotourism is a place to work with stakeholders in the social world (Wood, 2008).
Gonzalo (n.d.) states that ecotourism is a social endeavour that leads to community
organizations. In planning and managing an ecotourism area, local people and natural
resources significantly contribute. This shows that the implementation of ecotourism must
benefit local communities (Asadi and Kohan, 2011). People who are empowered through
tourism activities become an effective solution in tourism development, where developed
tourism can support the preservation of culture and the environment so that sustainable
tourism development such as ecotourism is realized. The purpose of organizing community-
based tourism is to see the community build themselves based on ecotourism activities
carried out in their area. Tourism development will not succeed without local leaders and
communities (Sutawa, 2012). As one example of a case study in Shiraz, Iran, this place has
good prospects for tourism development; with the participation of the community, the
tourism industry in Shiraz can increase (Aref and Ma'rof, 2008). Many people are aware of
how important tourism is in making social, cultural and environmental treatment and
economic change; for this reason, tourism is very dependent on the local community.
(Beeton, 2006). Tourism can be one of the factors of economic development; in this case,
leaders who deal directly in the field of action must take an essential role in the organization
of environment-based tourism and the community to improve their welfare (Godfrey
1996).

Indonesia, which is known for its wide variety of cultural, ethnic, and marine tourism
potentials, has the potential to make this an opportunity that requires good management.
Based on the current literature review, it is emphasized that the best-applied ecotourism
management pattern is community-based ecotourism for ecosystem sustainability and
improving the welfare of local communities.

Methods
This study uses input and output data from the Directorate General of Maritime and

Fisheries Resources Supervision, which are analyzed descriptively using tables and graphs
and related journal reviews.

Results and Discussion

Based on the information that has been presented, the government should adopt a
development policy based on the perspective of ecological, economic and social
development dimensions, or integration of the three dimensions (integrated management)
in all sectors, as an example of the case of the results of the study of Tran et al. (2017),
where researchers developed several approaches to the projection model of Indonesian
fisheries trends. In this study, the focus is on growth trends in the marine and inland
fisheries sector as well as the significant impacts on the social, economic and environmental
sectors related to this trend from increased activities in the public and private sectors,
which are identified as policies that are guided by the application of the Blue Economy
concept.

Constraints faced in the development of the fishing industry include the use of eco-
friendly fishing gear, which is still very limited, and fishers still prioritize the number of
catches compared to the selectivity of pitfalls. In addition, there are not many regulations
governing fishing time, so spawning fish are also caught. Stocks of fish in the natural world
are declining, and this is because the policy regarding determining the right time to see to

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protect the mother fish when spawning does not yet exist. Solutions that can be offered
related to the development of the fishing industry in the future are; First, the Indonesian
government needs investment both in the form of research and product development in
overcoming the problem of diseases which are the main obstacle to the aquaculture
industry, in addition, the government also needs to promote restocking and recovery
activities in nature through the concept of sea ranching. Increasing human resources (HR) is
also very much required by fishermen and fish farmers related to knowledge and skills in
their fields in supporting the sustainability of their businesses (Tran, 2017).

Conclusions
The current approaches that need to be taken by the government related to the

development of the fishing industry are Increasing science and technology and human
resources, developing the production centre area, improving the quality and food safety for
exports, developing sustainable and community-based ecotourism areas, increasing
supervision of marine natural resources and fisheries, additional investment in the
aquaculture sector, sustainable management of fishing fish, diversifying fishery products
and reducing the export of fishery products in the form of raw materials by making
partnership patterns to revive domestic industries. This approach is critical to do based on
the problems of the existing fishing industry; it is hoped that through the application of this
approach, the Indonesian fishing industry can develop.

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