Amidst economic slowdown, the fishery sector in Indonesia had high expectations breezed out from America; Indonesia was entitled to Generalized System of Preference (GSP) facilities for fishery products which was already approved by President Barack Obama and the US Senate on Monday June 29. 2015. This was disclosed by Saut P.Hutagalung, the Director General of Fishery Processing and Marketing, Ministry of Maritime Affairs and Fishery in Jakarta (30/7).
Saut explained that GSP was a special scheme designed by developed countries which was a non bilateral preference for developing countries, i.e. tax free facilities for products imported from the privileged countries. By this GSP scheme 34 fishery products like frozen crabs, shrimps, sardines, frog meat, processed lobsters, sea crabs were exempted from import tax. Saut said that tax reduction for 34 products ranged between 0.5% - 15%.
According Saut, the USA was a promising because 90% of fishery products consumed there were imported products. So it was not surprising that Indonesia aimed at America as main target for exporting fish. He mentioned that in 2014 Indonesia’s market share in the USA was in second position next to India because supply of fish from China, Thailand and Vietnam were disease infected. Indonesia’s total market share in the USA was in second position next to India because supply of fish from China, Thailand and Vietnam were disease infected. Indonesia’s total market share constituted 19% of total market in the USA, i.e. 107,000 tons of 570.000 tons.
Meanwhile export of crabs and sea crabs from Indonesia was also in one of the leading position with share of nearly 20% at the value of USD 277 million of the total USD 1.4 billion. The main exported commodities to the USA in 2014 was shrimp amounting to 107,424 tons worth USD 277 million of the total imported sea crabs at the volume of 10,833 tons worth USD 277 million and Tuna at the volume of 22,000 tons worth USD 128 million.
The USA was the biggest export market for Indonesia’s crabs and sea crabs. Increased export of shrimps from 2013 to 2014 by volume constituted 30.16% and by value 45.44%. increase from 2013 – 2014 for crabs and sea crabs by volume was 5.50% and by value 45.89%.
Saut stated that export of Indonesia’s fishery product to the USA was posting an average growth of 21.14% since 2011. He said that all fishery products entitled of GSP facilities was estimated at 1.75% of total export to the USA which totaled USD 1.84 billion in 2014.
The Director General stated that beside being non bilateral, GSP granted by the USA was also due to good relationship between Indonesia and America, especially collaboration between the Ministry of Maritime Affairs and Fishery of RI (KKP) and the US authorities. The effort to obtain tariff exemption had begun since November 2014 by cracking down illegal fishing enhancing sustainable legal fishing. (SS)
Business New - August 5, 2015