December 15, 2006

 

Bank loans US$33.3 million to Indonesian fishermen for aquaculture

 

 

Asian Development Bank will help boost the incomes of 14,000 poor fish farmers in Indonesia through a loan of US$33.3 million to enhance aquaculture production and productivity.

 

The Project will support a Government programme to promote community-managed freshwater, brackishwater, and marine aquaculture development in the country.

 

It will be carried out in five districts of four provinces: Langkat in North Sumatra, Ogan Omering Ilir in South Sumatra, Karawang and Sumedang in West Java, and Buton in Southeast Sulawesi.

 

Aquaculture is an increasingly important industry in Indonesia, employing about 2.5 million people, providing an important source of nutrition and generating foreign exchange earnings and domestic revenues.

 

However, poor techniques and lack of good quality fish and shrimp seed, along with growing environmental degradation and pollution, are holding back the industry.

 

Farmers also lack credit and marketing infrastructure.

 

The project would focus on small-scale and low-cost systems that are economically sound and environmentally friendly, and that can easily be replicated by larger entrepreneurs and organisations.

 

It will include new schemes to help organized fish farmer groups in establishing microenterprises and marketing their products, assisted by community based and nongovernment organisations.

 

The project will also help the government formulate policies and regulations for aquaculture development and environmental management.

 

Besides increase in aquaculture production, incomes and jobs, the project is expected to generate a cleaner environment and better health and nutrition, said M. Jamilur Rahman, an ADB Principal Project Specialist.

 

The total project cost is US$44.5 million, of which ADB's contribution accounts for almost 75 percent. The loan is from ADB's concessional Asian Development Fund, carrying a 32-year term, including a grace period of eight years.