December 31, 2009


Indonesia mulls elimination of aquafeed import tariffs



The Department of Maritime and Fisheries Affairs (DKP) of Indonesia has proposed for the elimination of an import duty of 28% on fish/shrimp feed raw material.


The import duty of 28% is one of the three obstacles in developing the domestic fishery and aquaculture industries, said DKP Secretary General Syamsul Ma'arif, adding that seed and funding are the other two obstacles.


Data by DKP showed fish/shrimp feed raw material import for period 2004-2008 surged by an average of 22.28% per year in volume and 19.14% per year in value, namely from 96.12 million tonnes to 190.66 million tonnes and from US$41.32 million to US$132.37 million.


In 2008, fish/shrimp feed consumption reached 1.13 million tonnes consisting of 750,000 tonnes in fish feed and 380,000 tonnes in shrimp feed, surging 10% from 2007.


The high fish/shrimp feed price, added Syamsul, could curb production as feed plays a vital part in fisheries production.


Syamsul said the banking industry is not supportive to small-scale fisheries sector. He also admitted that the people's business credit (KUR) launched by the government has not been utilised optimally.