To boost national farmed shrimp production, The Ministry of Maritime Affairs and Fisheries (MAFF) will add a total of 12 modern shrimp pond areas in 2024. The spokesperson for the Minister of Maritime Affairs and Fisheries, Wahyu Muryadi, said that the project budget for the construction of modern integrated shrimp ponds in Waingapu, East Sumba Regency , East Nusa Tenggara (NTT), reached USD500 million or approximately IDR 7.8 trillion.This was reported in Kompas.com
The modern shrimp pond construction project in 11 other locations is part of the five component program of the Asian Development Bank (ADB) to improve national shrimp productivity through the shrimp cultivation infrastructure development project (IISAP). The budget amounts to Rp 1.3 trillion.
A target 2 million tonnes
In 2024, the Ministry of Marine Affairs and Fisheries (KKP) is targeting a national shrimp production of 2 million tonnes. To support this, the largest modern shrimp pond, according to the plan, will be built on a 1,800 ha land in Waingapu.
The project, said to be integrated from upstream to downstream, will be supported by the development of supporting factors; port infrastructure, housing, clean water, and lighting systems. The largest modern shrimp farm, according to plans, will be built in Waingapu on a land area spanning 1,800 ha.
Apart from Waingapu, the construction of modern shrimp ponds will also be carried out in 11 other locations, namely Aceh, Lampung, Jembrana and South Sulawesi. The construction process is planned to start in the first quarter of 2024. From KKP data, the total budget allocation ceiling for the Directorate General of Aquacultured Fisheries KKP in 2024 for all marine and fisheries management programs is recorded at IDR 826.6 billion.
“Therefore, I believe that I need support from other ministries/agencies because there will be a new economic growth there. Thousands of workers will be present there, certainly they will also need housing, ports, clean water, electricity, and so on,” said Trenggono in a press statement.
Guangdong Evergreen Group
Previously, the Ministry of Marine Affairs and Fisheries (KKP) has agreed on a cooperation with the Chinese company, Guangdong Evergreen Group, regarding the transfer of technology, skills, and knowledge in integrated shrimp farming. Other materials include the development of human resources quality as well as the promotion and investment in integrated shrimp farming development.
Based on the data from KKP, shrimp is at the top position of Indonesia’s leading fisheries export commodity with export value reaching USD 2.16 billion in 2022. “The production of shrimp in 2023 has currently reached 1.097 million tons,” added Trenggono
In 2023, KKP has established a pilot project for area-based shrimp farming in Kebumen, Central Java, covering an area of 60 hectares with an allocation of the State Budget worth Rp 175 billion. KKP has also revitalised shrimp pond clusters in eight locations. Locations include East Aceh, East Lampung, Sumbawa, Mamuju, Muna and North Morowali. To support the revitalization of shrimp ponds, KKP will build a multiplication center to provide shrimppost larvae at the Takalar and Aceh Brackish Water Aquaculture Research Institute.
Industry concerns
The Chairman of Shrimp Club Indonesia (SCI), Haris Muhtadi, believes that the world shrimp market is still wide open despite the challenges being faced. Some of the challenges currently encountered include the anti-dumping petition for shrimp exports to the main market of the United States, price competition, quality competition, certification, and sustainability.
Indonesia, it continued, can still survive and achieve a significant position in the global market if it can promote production and meet market needs standards. Indonesia also needs to open up markets in countries that have not been optimally developed, such as China.
Haris believes that the government’s efforts to boost production by opening new modern shrimp ponds are not appropriate. The main problem faced by the national shrimp industry today is the high logistics costs from farms to shrimp processing centers for export, disease issues, and low productivity.
The main task of the government, as emphasised Haris, is to provide convenience in doing business, provide models, and showcase technology. A business-friendly environment includes simplifying licensing, building and improving infrastructure in cultivation centers, and triggering shrimp cultivation research that is easier to apply so that disease prevention is optimal and shrimp production capacity can be increased.
On the other hand, he considers that shrimp pond management tends to be complicated and requires quick responses and simple bureaucracy. Therefore, shrimp farming is better suited for the private sector. “Investment and handling of shrimp production should be left to the private sector. If the government builds and manages shrimp ponds on its own, it will become a competitor to the private sector in marketing to the processing industry,” he said.
Haris added that shrimp pond development must be able to provide a double effect for the surrounding population and national economy, as well as considering sustainability aspects. Large-scale ponds will exert significant pressure on the marine environment as the sea is a source of water supply for aquaculture.
If the government were to build and manage shrimp ponds themselves, they would become competitors to private companies in marketing to processing industries.
Haris added that the development of shrimp ponds should be able to provide dual benefits for the surrounding communities and the national economy, while also considering sustainability aspects.
In its history, the most challenging aspect of large-scale shrimp farming in Indonesia has been maintaining sustainability. Large-scale farms impose significant pressures on the marine environment, as the sea is the primary source of water supply for cultivation.
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