Jl. Gatot Subroto No. 44Jakarta 12190, PO. Box 3186Indonesia.

p. +6221 5292 1334 f. +6221 5264 211www.bkpm.go.id e. :info@bkpm.go.id www.bkpm.go.id

FISH

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&AQ

UAC

ULT

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INVESTMENT

Ministry of Marine Affairs and FisheriesWebsite: www.kkp.go.id

Bogor Agriculture UniversityWebsite: www.ipb.ac.id

Indonesian Institute of SciencesWebsite: www.lipi.go.id

Association of Indonesian Fishing Companies (GAPPINDO)Address : Wisma Sakura Floor 2 (Jalan Hati Suci No. 4 Taman Kebon Siri, Central Jakarta 1025)

Indonesia Investment One Stop Service (OSS) Center and Marketing Officer

Indonesian President, Joko Widodo, officially launched the Integrated One Stop Service Centre (PTSP) at Indonesia Investment Coordinating Board (BKPM) in early January 2015. This service aims to smoothen and simplify licensing procedures for investment projects. From now on, investors will not need to visit various ministries or government agencies to obtain necessary permits but can simply turn to the BKPM's OSS centre.In addition, currently the BKPM has established what so called Marketing Officers (MO) who will take care any investment interest to explore investment opportunities in the country. The contact of MO is Directorate of Sector Promotion, BKPM (Phone: [62-21] 525-2008 Ext: 3568, Fax: [62-21] 5288-0390, Email: info@bkpm.go.id).

Opportunities in areas related to fishery aquaculture can be summed up as follows:

1. The government is committed to improve infrastructures with significant investment in projects to develop new ports to support fishery industries. In addition, investment in new roads and railways would significantly improve logistics.

2. Investment in cold storage and specialized logistics, and in fish processing facilities to accommodate the catch and production, including downstream processing.

3. Companies with advance knowledge and technology in marine aquaculture have the advantage to invest in Indonesia, given the fact this industry is relatively new and productivity is still low.

4. Indonesia still imports substantial quantity of food for fish or pellets. Developing the aquaculture will also open investment opportunities to support fish production.

5. Domestic demand for fish product is likely to rise since consumption per capita is still relatively low.

6. Since 2008, the government has encouraged integrated fishery capture, enabling foreign investors to build fish processing plants or establishing partnerships with local companies in operating fish processing industries in Indonesia.

GOVERNMENT PROVISIONS AND SUPPORTS

1. To support a conducive business climate in the fishery sector, the Indonesian government has established 12 Technical Service Units throughout the archipelago that provide support for the fishery industry including: engineering innovative aquaculture technology, handling fish breeding propagation,providing technical assistance in practicing good environmental management.

2. Industrialization in the fishery sector is supported by the designated “minapolitan” (economic zone) that consists of production and trade centers for fish and marine products, and housing complex for fishermen. This “minapolitan” concept is a regional based fishery development approach that upholds the principles of integration, efficiency, quality and acceleration of fishery industrialization.

3. FDI in the fishery secto r is encouraged to provide capacity development programs as part of the transfer of technology process for the local communities.

Local Partners

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FISHERY & AQUACULTURE

ndonesia's economy grew around 5.0% in 2014 and the World IBank is expecting the economy to grow by around 5.2% and 5.5% in 2015 and 2016 respectively. This moderate growth rate was mainly contributed by the lower commodity price during the last

two years. On the other hand, fishery industries in Indonesia have continued to grow during the last 5 years, which indicates its resilience and opportunity in the coming years. With a rapidly growing and increasingly discerning middle class eager for new and innovative food products, spurred with enhanced optimism of the country's economic growth, Indonesia offers a vast array of investment opportunities in various industries, including investment in the fishery and aquaculture sector.

INVESTMENT

WHY INDONESIA?• As the largest archipelago country in the world located

in fish-rich waters, Indonesia is one of the biggest seafood producer and exporter, and being the fourth most-populous country in the world it is also one of the highest seafood consumer. Aquaculture has been an important part in fish production, with production exceeding those from wild capture.

• Indonesia has a strategic position and potential resources as an archipelago. Indonesian marine area reached 5.8 million km2, consisting of 0.3 million km2 of territorial waters, 2.8 million km2 inland waters and islands, 2.7 million km2 Exclusive Economic Zone (EEZ). Moreover, Indonesia is the largest archipelago in the world, with more than 17 thousand islands.

• The economic potential of marine and fisheries Indonesia is estimated to reach 1.2 trillion dollars per year, equivalent to 10 times the total state budget. However, it is estimated that only less than 10 % of the potential capacity that has been utilized, so the opportunities in this sector are widely open.

• Aquaculture production in 2014 was approximately 14 million tons, while fish from wild capture was around 6 million tons. The combination of domestic demand and export potential represent significant opportunities in fishery and aquaculture business.

MARKET OPPORTUNITIESIndonesia's extensive coastline territory offers perfect condition for aquaculture in saltwater, with a potential area of more than 12.5 million hectares, of which less than 200.000 hectares is utilized. Indonesia’s aquaculture commodities include various types of fish, shrimp and seaweed.

SeaweedAs a leading seaweed producer, Indonesia is well placed to take advantage of growing demand. The country can also build on ample experience in seaweed cultivation, but it lacks the capacity to process all of its seaweed. Much of it is exported abroad in raw form and often re-imported for domestic consumption, which signifies downstream business prospects.

FishMarine aquaculture in Indonesia is mostly for seaweed production, while offshore fish cultivation is relatively new for Indonesia. Based on

research, so far grouper remains Indonesia’s principal mariculture fish and its cultivation appears to be the most promising

business. As for freshwater aquaculture, cultivation using lakes and ponds are more common for producing various types of fish including catfish, milkfish, carp and tilapia. Although most fresh water cultivations are semi traditional fish farms, Indonesia is the world's largest supplier of tilapia that

became the first farmed fish to receive certification from the Aquaculture Stewardship Council (ASC).

Production volume of Fisheries in Indonesia

Source: statistik.kkp.go.id ( 2014)

ShrimpShrimp is Indonesia's main fishery export commodity, with production in 2013 reaching approximately 608,000 tons and export value amounting 37% of total fisheries export with a value of more than USD 700 million. Main markets for shrimp export destinations are US, Japan and China.

The outlook for shrimp aquaculture is still very lucrative as there are around 1.2 million hectares of potential areas for shrimp breeding, giving it the potential to become the world’s largest shrimp exporter. As with other seafood goods, the shrimp industry harbours potential for productivity gains through the employment of modern knowhow and technology.

Investment in fishery cultivation remains low, mainly because the domestic players are traditional fish farmers.

Source: BKPM, 2015

1.2 TRILLION DOLLARS

PER YEAR

economic potential of marine

and fisheries

12.5 million

hectares

aquaculture in saltwater

0.0

2,000,000.0

4,000,000.0

6,000,000.0

8,000,000.0

10,000,000.0

12,000,000.0

14,000,000.0

16,000,000.0

18,000,000.0

20,000,000.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Capture fisheries Aquaculture

Year

DDI FDI

ProjectInvestment value(Rp. in million)

ProjectInvestment value(US$ in thousand)

2010 NA NA 2 150

2011 1 50 NA NA

2012 1 200 5 16,338.2

2013 2 200 7 300

2014 3 21,699.4 10 6,457.5

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