July 29, 2008

Indonesia's shrimp exports shrinking on stronger competition

New suppliers from the region are denting Indonesia's shrimp exports to US, Japan and EU, said an official from the Maritime and Fishery Ministry.

According to Foreign Marketing Director Saut Hutagalung, the shrimp market is now oversupplied with the entry of new competitors from Vietnam, India and China, hurting Indonesia exports.

Despite the overall decline in shrimp exports, Hutagalung said Japan will buy more marine exports from Indonesia in future as the Economic Partnership Agreement (EPA) between the two countries takes off.

The EPA, effective since July 1, exempts import duties for Indonesian shrimp and 50 other fish products, where previously, Japan had to pay import duties of 3.5 to 10 percent, according to newspaper Investor Daily.