The PRIME research team has conducted the first mission for the case study of private sector support in the aquaculture & fishery sector in Indonesia in June 2014. This briefing note provides: (i) insight into the sector choice based on the preparatory feasibility study, (ii) an overview of the first mission and (iii) the next steps.
The first step of the case study was the conducting of a feasibility study to determine which sector in Indonesia was most suitable to conduct the case studies. Given the number scope of the activities of both CBI and PUM in fishery and aquaculture, this sector emerged as the most suitable sector for the case study. A desk-study on the sector was conducted. Subsequently, various telephone interviews were conducted with the PUM and CBI managers involved with the activities in this sector in Indonesia.
The next step was the selection of companies. Based on the list of firms supported by CBI and PUM in the period 2010-2014 a selection of companies was made on the basis of diversity in activities (covering both aquaculture and fishery sectors) as well as geographical clustering (in order to facilitate the visiting of the firms within the short timeframe of the field mission). In addition, a number of non-supported firms were contacted to be interviewed to obtain insights in the comparability of supported and non-supported firms, selection into the programs and other aspects of the processes and mechanisms underlying the impact of the activities. These ‘comparison group’ SMEs were selected and contacted through the local PUM and CBI representatives.
Overview fishery & aquaculture sector Indonesia
Indonesia has the fourth largest fishery and aquaculture sector in the world, and the largest in South-East Asia. In 2012 the sector accounted for an approximated 21% of Indonesia’s agricultural economy and 3% of GDP (FAO, 2012) and provided an estimated 5 million people and their dependents with incomes (Indonesian government, 2011). Approximately two thirds of the total of 8.4 million tons produced in 2011 derived from fishery & the remaining one third from aquaculture (FAO, 2012). Over 95% of the fishery production originates from artisanal fishermen (ibid). Especially the aquaculture sector has been growing strongly in the past years.
Graph 1: Production Trends in Fishery and Aquaculture
Key challenges & trends in the Indonesian fishery sector include: (i) overfishing in open waters and accompanying shift to aquaculture, (ii) technological advances in aquaculture (iii) development of mariculture (cultivation of marine organisms in open sea), (iv) increased competition from fishery & aquaculture sectors in other emerging economies such as Thailand & Vietnam, (v) stricter requirements for labelling & packaging produce for export, (vi) competition from other sources of protein such as chicken & beef (FAO & Indonesian Government ).
The first mission took place between June 8-16, 2014. For the first mission we have chosen to focus on SMEs in the region of Jakarta & Surabaya, where a large fraction of the CBI & PUM beneficiaries are located. One motivation for the regional focus was to limit travel time within the country. Another motivation was to have more geographical heterogeneity in the sample, allowing for more comparison between the SMEs. During this mission 14 SMEs – both supported and supported – as well as 4 sector including the ministry of Fishery & aquaculture & the sector organization were interviewed on a range of topics such as: (i) how firms got into the programs, (ii) how support from CBI and PU was integrated in the organization, (iii) which factors influenced the success with which SMEs could apply the support to the benefit of their organization.
What is next?
The research team is exploring possibilities for obtaining data on the fishery & aquaculture sector through existing research efforts, and include PUM & CBI specific questions in these surveys where possible. A second mission will be in 2016 to explore and deepen observations from the first mission and explore enablers and barriers of effectiveness of the support activities. The overall case study analysis will be done late early 2017, followed by a verification workshop to present and discuss the findings.
 Indonesian Government, Fishery Industry at a Glance (2011): http://www.bkpm.go.id/img/file/fisheries.pdf
 Ministry of Marine Affairs and Fishery
 FAO: http://www.fao.org/fishery/countrysector/naso_indonesia/en