INNOVATION NEEDED TO IMPROVE FISHERMEN'S WELFARE

By Andi Abdussalam

Jakarta, June 22 (Antara) -- The management of the fisheries sector needs to be changed from being exploitation-oriented to innovation-oriented so the welfare of fishermen can be improved.          "We must have the courage to change our management system from being exploitation-oriented and adopt innovative approaches," Chairman of the Indonesian Traditional Fishermen Association (KNTI) Riza said on Sunday.          The KNTI wants all stakeholders in the fisheries sector to give priority to a management system that leans more towards innovation and sustainability to guarantee the future of the fisheries sector and fishermen.          Damanik added that without Indonesian Fishery Processing Units (UPI) improving the distribution system, the country will be trapped in the web of exploitative management. This system is prone to damaging the environment, narrowing employment opportunities and corrupting added values, which can all lead to poverty.          It is ironic that a number of provinces rich in fisheries resources lack adequate UPIs, such as Papua and Maluku which have only 1,524, or about 3 percent of the total UPIs in Indonesia, the KNTI chairman stated.            UPIs in these provinces do not seem to be more than fish storage units. "We must become a key player in our own fisheries industry and in the world," he emphasized.          For this purpose, all sides in the country need to develop sustainable and participative fisheries operations in the downstream sector under a fair regulation issued by the state.         "After all, more than 50 percent of the articles in the fisheries law regulate matters related to catching and exploitation activities in the country. Only some 17 percent of them concern processing activities and downstream development," Damanik pointed out.         He also stated that there are some 15 thousand alumni of maritime studies from 60 state and private universities in Indonesia, in addition to more than 700 graduates from marine and fisheries vocational schools.         All these matters should be taken into consideration in the development of the downstream fisheries industry. Campuses and fishermen's villages must be connected with the downstream program and must cooperate with each other to make Indonesia a sustainable, just and innovative marine and fisheries axis.         Moreover, the Ministry of Marine Affairs and Fisheries (KKP) has emphasized the importance of technological innovation to achieve food sovereignty, as announced by President Joko "Jokowi" Widodo and Vice President Jusuf Kalla.         "Innovations and development in aquaculture technology are crucial to successfully transform Indonesia into the world's largest fisheries producer," Head of the Research and Development Center of the Ministry of KKP Achmad Poernomo said.         Poernomo added that to achieve the country's target in the fisheries sector, various innovative, appropriate and effective technologies were needed by all smallholders in the field.         To develop the fisheries sector, fishermen in the field play an important role. Advancements need to be reflected in improvements in their welfare.         Therefore, banks have been asked to help finance fishermen's businesses.         According to Director General of Processing and Marketing of Fisheries Products of the Ministry of KKP Saut Hutagalung, eight banks and non-banking financial institutions expressed their commitment to provide credits worth Rp7 trillion for fishermen this year.         "Seven national banks, one regional government bank and non-banking financial institutions have allocated Rp7 trillion in credits for the fishermen for 2015."            Hutagalung further noted that the amount of available funds could, in fact, exceed the value committed. His office is also trying to obtain funds through the People's Business Credit (KUR) scheme.         Based on data from the Financial Services Authority (OJK), the amount of monetary support financial institutions provided the KKP sector in 2014 stood at Rp17.95 trillion, or only 0.49 percent of the total national financing of Rp3.6 thousand trillion.         The maritime sector in general, including the shipping industry as well as the dockyard and cargo industry, received financial support of Rp85 trillion.         Furthermore, the performance of credits in the marine and fisheries sector showed a positive trend, as indicated by data on non-performing loans (NPL) for the 2012 to 2013 period, which revealed NPL below 4.5 percent. It dropped further to 2.81 percent in 2014.         The OJK supports the sustainability of the industry as one of the pillars of the Ministry of KKP.         "For this purpose, the Ministry of KKP is also giving priority to modernizing fishing equipment to maintain the sustainability of the fisheries sector."    Therefore, according to Sectary General of the People's Coalition for Fishery Justice (Kiara) Abdul Halim, the government, through the Ministry of KKP, is expected to fulfill its promise to build infrastructure such as cold storage units for fishermen.         Cold storage units are very important for fishermen because they need to preserve their catch.         "Fishermen do not enjoy the benefits of the current price hike as there are no cold storage facilities in coastal villages. As a result, they have to sell their catch immediately after fishing," Halim explained on Monday.          He added that the hike in fish prices across various markets in several regions benefitted only traders, not fishermen.     ***3*** (T.A014/INE) EDITED BY INE (H-YH) (T.A014/A/BESSR/A/Yosep) 22-06-2015 22:07: