RI ENCOURAGING INVESTMENTS IN PROMISING SHRIMP AQUACULTURE BUSINESS

By Andi Abdussalam

Jakarta, Nov 12 (Antara) - Many businesses are being encouraged to make investments in shrimp aquaculture, while the government carries out a revitalization program in the sector, which is seen as a promising business with good prospects for the future.          The Indonesian Chamber of Commerce and Industry (Kadin) is encouraging its members to step up investment in shrimp cultivation to increase the country's shrimp production to meet overseas market demand.          Kadin Deputy Chairman Yugi Prayanto stated that Kadin was interested in developing a shrimp project because the price of shrimp was appreciating and because Indonesia was already using shrimp cultivation technology.          "Overseas demand for shrimp is showing an upward trend," Yugi Prayanto said on Monday, adding that Kadin was considering investing in the fishery cultivation sector, particularly in shrimp cultivation.          The Food and Agricultural Organization (FAO) had predicted that Thailand and China's demand for shrimps would remain high, and their domestic production was not enough to meet it. This would force the two countries to continue importing the commodity.            With regards to the good prospects of shrimp aquaculture, the Ministry of Marine Affairs and Fisheries has also launched a revitalization program for idle shrimp ponds in a number of regions. The ministry claimed that the program has boost Indonesia¿s shrimp production.          "This program was been able to increase the country's shrimp production and the productivity of shrimp ponds which have so far been idle," Slamet Soebjakto, Director General of Aquaculture Fisheries at the Ministry of Marine Affairs and Fisheries (MMAF) said on Thursday.         He further stated that the revitalization of idle shrimp ponds had been neglected so far and was able to increase productivity and improve the welfare of breeders and people. Moreover, the government had continued to make efforts to increase the national shrimp production to meet both local and international market demand.         "We are revitalizing shrimp aquaculture so that we can set a production target of a 30 percent increase from last year, which would be an increase from 457,600 tons to 608,000 tons," Slamet told the media recently.          This year, the government is revitalizing 20,000 hectares of shrimp ponds in Central Java, East Java, South Sulawesi and Lampung.          To achieve its production target of 608,000 tons of shrimp this year, the government had allocated a budget of Rp240 billion for the revitalization of idle shrimp ponds.         Slamet pointed out that the revitalization program, which was a pilot project called the 'defarm (demonstration farm) project,' was able to spur the development of new shrimp ponds near the defarm projects.         "This program is part of the agricultural, forestry and fishery revitalization programs announced by the President in 2005, but was realized only in 2012 by the Ministry of Marine Affairs and Fisheries," the Director General stated.         He said that the 1,000 hectares of revitalized shrimp ponds would be able to absorb 130 thousand workers.         "This will benefit a lot of workers, let alone if the program generated the expansion of new ponds outside the defarm program," noted Slamet.         According to the Marine Affairs and Fisheries Minister Sharif Cicip Sutardjo, a number of shrimp farmers in a number of regions had shown their success in the revitalization program. They were able to produce some 15 to 18 tons of shrimps per hectare per harvest season.          "So, in one year, they are expected to produce 36 tons of shrimp per hectare," he said.         The MMAF is also optimizing the development of shrimp ponds on the northern coast of Java by designing a pilot project called the demonstration farm (defarm) project on a 1,000 hectare area.          The minister said last month that the defarm projects, which had been carried out since last year in six districts in the northern coats of West Java and Banten, would be continued this year in 28 districts in six provinces of Central Java, East Java, South Sulawesi, West Nusa Tenggara, North Sumatra and Lampung.         The minister said Indonesia had bigger potential, compared with its competitors in other Southeast Asian countries. The land area that could be developed for shrimp pond cultivation in Indonesia had reached 1.2 million hectares, of which 773 thousand hectares had very productive potential.         Besides land potential, Indonesia had another competitive edge in developing shrimp aquaculture, namely that its shrimp was considered free from diseases.          Minister Sharif claimed that Indonesian shrimp was free from residue and had high economic value in the global market. Therefore, shrimp deserved to be named as a mainstay commodity.          "The application of the National Residue Control Plan (NRCP) every year by the MMFA has succeeded in ridding Indonesian shrimp from residue and in leading the European Union Commission to lift its sanction on Indonesia shrimp exports," the minister said.         He added that Indonesian shrimp had no problem with the Early Mortality Syndrome (EMS) disease, which had attacked shrimp in Thailand, Malaysia and Vietnam. This was the reason why Indonesia's shrimp had high economic value and had experienced high market demand during the past few months.         Data from the MMFA showed that during the first semester of 2013, Indonesia¿s shrimp exports touched US$723.6 million, accounting for 36.7 percent of the total value of all of Indonesia¿s marine and fisheries exports, which stood at US$1.97 billion.          This is why Kadin is considering investing in shrimp aquaculture's good prospects and calling on Kadin businesses to boost investment in this sector.         "The cultured fish business, in general, has better prospects than catch fishing. Banks see this sector as more feasible, measured and its turnout is guaranteed," Kadin Deputy Chairman Yugi Prayanto said.          Harry Lukminto, Kadin's permanent Committee Deputy Chairman for Business Development, Marine and Fishery Technology Affairs, shared the opinion that the country's shrimp business had good prospects, saying that Indonesia should not have any doubts about marketing its shrimp.          He recalled that Indonesia had a good chance to expand its exports to those countries and should utilize its competitive edge.          After all, it had the longest and second best coast lines in the world. This could ensure its ability to provide fish throughout the year.         Lukminto noted that the Marine Affairs and Fisheries Ministry was already on the right track with its support for the maritime and fisheries industrialization programs. ***3*** (T.A014/INE/O001) EDITED BY INE (T.A014/A/BESSR/O. Tamindael) 12-11-2013 15: