Wednesday, 22 June 2011

Marine Based National Development Needs Reorientation

Vice chairman of House’s Budget Agency, Tamsil Linrung, said that reorientation is necessary for marine-based national development. Indonesia can become the largest fisheries country in the world with total potential of fisheries product at around 65.1 million tons/year. China, which is currently the largest fisheries production of only not more than 60 million tons/year.

The high potential is not yet balanced with achievement in the form of acquirement of foreign exchange revenue and contribution to the national GDP. Until now, contribution of fisheries sector to GDP is only 25%.
While, macro structural factors are related to high interest rate of bank loan, which is around 14% a year. As a comparison, interest rate of bank loan in Malaysia, Thailand, and the Philippines  is only 3.78%, in Australia 3%, and in japan 0.5%. in conclusion, political economic as well as fiscal and monetary polices currently are still oriented toward economic activities on land, and are less oriented toward economic activities in marine and fisheries sector.

There should be a minimum of 5 strategic steps to be taken in Indonesia’s fisheries development. Firstly, it must be made sure that the fishing intensity (number of fishing boats and fisherman) operating in each water territory shall be at optimal level, not exceeding the maximum sustainable yield (MSY).

Secondly, productivity and efficiency of the existing marine and brackishwater culture must be improved by applying Good Aquaculture Practices in accordance with supportiveness of the surrounding environment. Thirdly, infrastructure and production facilities for capture fisheries as well as culture based fisheries must be provided in accordance with the needs in each fisheries areas throughout Indonesia.

Fourthly, credit program with low interest rate and softer requirements for marine and fisheries sectors, like in Malaysia, Thailand, india, Vietnam, china, and business safety should be more conducive and attractive.

All public (political-economic) as well as fiscal and monetary policies, export-import, educational, science & technology, and regional autonomy policies must support marine and fisheries development through reorientation of marine and archipelagic based national development.

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