February 16, 2009

The Ministry of Marine Affairs and Fisheries (MMAF) plans to increase the volume of processed fishery product exports up to 25 percent of total fisheries production in order to increase the value of exports.

 

MMAF director of foreign marketing Saut P. Hutagalung said on Thursday (Feb 12) that the large increase, from 7 to 8 percent previously, would also be followed by diversification of export markets.

 

Hutagalung said they are focusing on improving the quality of processed products which are more valuable.

 

He said that the processed products are more valuable in terms of prices compared to raw fishery products.

 

The ministry is targeting production of 4 million tonnes of processed fishery products out of total annual production of 12.73 million tonnes in the industry.

 

MMAF data shows that from 2007 to 2008, the volume of exports increased by 4.89 percent, from 854,328 tonnes to 896,140 tonnes, also with export value increasing by 14 percent, from US$2.26 billion in 2007 to US$2.57 billion in 2008.

 

MMAF short and mid term plan targets 9 percent growth in export value this year, amounting to US$2.8 billion, slower than growth from 2007 to 2008.

 

In order to cope with the slowing global demand, the ministry is also planning to diversify its export markets to the Middle-East, and Central and Eastern Europe.

 

Hutagalung said demand in key export markets like the US, EU and Japan, has decreased around 10 to 15 percent.

 

MMAF data shows that in 2008, Indonesia's fishery products export value to the Middle-East reached US$40 million, including exports to Saudi Arabia at US$18 million and Egypt at US$7 million.

 

MMAF is planning to increase exports to these areas by 60 to 70 percent this year.

 

The data also shows that Indonesia's fish products exports to the Eastern and Central Europe in 2007 reached US$12 million.

 

The US, EU and Japan are still the biggest importers of Indonesian fishery products, reaching 65 to 70 percent, followed by East Asia which contribution reached to 24 percent.

 

Hutagalung said that Indonesia's main commodities are shrimps and tuna fish, with shrimp exports contributing US$1.2 billion last year or almost 50 percent out of the value of total exports which reached US$2.56 billion.

 

He said diversification of products is also one of the ministry's strategies to increase export value.

 

He added that less popular commodities like pangasius and milkfish are in more demand in the Middle East and Central Europe, especially pangasius which can be use as a substitute for cod fish.

 

MMAF 2009 targets also include increasing domestic fish consumption to 30.17 kilogrammes of fish per capita annually and improve coastal regencies and cities into integrated coastal areas, and increase fishery and maritime sector's contribution to the gross domestic income.