RI TAPPING ITS SEAWEED POTENTIALS

by Andi Abdussalam

Jakarta, Nov 24 (ANTARA) - Indonesia, through its ministry of maritime affairs and fisheries (DKP), is working out an ambitious plan to make itself a world seaweed production center in the coming five years with an estimated annual turnover of US$1 billion.

        To achieve this goal, the government is planning to create 60 seaweed cultivation clusters, restrict and then stop dried seaweed exports and build local seaweed processing industries. So far, Indonesia supplies 50 percent of the world's need for dried seaweed.

        "We will restrict our dried seaweed exports in 2012 at the latest, after which will stop it totally," Victor P H Nikijuluw, director for business and investment affairs of the Directorate General of Processing and Marketing of Fishery Products (P2HP), said here on Tuesday.

        The plan to stop exports of dried seaweed is aimed at developing domestic seaweed processing industries. So far, seaweed processing industries at home had not yet been developed maximally.

        Data available at the DKP show that only about 15 percent of Indonesia's seaweed exports are in the form of processed products, while the remaining 85 percent are in the form of dried seaweed.

        In order to increase supply for domestic seaweed processing industries, the DKP is launching a seaweed cluster development scheme in various parts of the country.

        "We set a target to cultivate 60 seaweed clusters up to 2014. This is an effort to become the world's biggest seaweed producer," DKP Secretary General Syamsul Ma'arif said after opening a business dialog on seaweed business and investment opportunities on Tuesday.

        He said that up to now, the DKP in cooperation with regional governments and private businesses had developed 12 of the 60 planned seaweed clusters. The 12 seaweed clusters are located in Sumenep, East Java (two clusters), Gorontalo (two clusters), Pangkep (South Sulawesi), Dompu (West Nusa Tenggara/NTB), Serang (Banten), Riau Islands, North Minahsa, Parigi Moutong (Central Sulawesi), Polewalimandar (West Sulawesi) and Bau Bau (Southeast Sulawesi).

        The efforts to cultivate seaweed cluster schemes are being made to integrate upstream and downstream processing so that production can become optimal and have added value.

        Victor PH Nikijuluw explained that the cluster system was implemented in three groups or layers. The first group is that the seaweed cluster consists of or includes local people or fishermen for its cultivation. The second layer is a business group collecting the products for first phase processing by local or regional firms and the third layer is that advance processing by processing and export companies. The aim of these seaweeds cluster divisions is to increase added value.

        He said the production target for 2014 was the equivalent of one million dried seaweed per annum. Under the plan the same volume of seaweed would be processed into alkali treated cottonii (ATC), semi refined carrageenan (SRC) and refined carrageenan (RC).

        Thus, in 2014, Indonesia's seaweed products in the form of ATC, SRC and RC would reach a value of one billion US dollars.

        At present, seaweed cluster schemes are being carried out in 12 different regions. Of the 12 clusters, six are in progress and their end-products would be extracts or seaweed chips developed by local industries.

        Victor PH Nikjuluw said that in Indonesia there were 10 seaweed industries which processed eucheuma cottonii seaweed species, with a production capacity of 500,000 tons per annum.

        With regard to seaweed processing industries at home, the DKP is preparing three policy options to develop seaweed processing industries in the country. The first option calls for dried seaweed exports to be conducted only registered export companies owning processing factories at home.

        The second option is that the government will restrict dried seaweed exports and the third one is that the government will authorize cooperatives to carry out seaweed exports so that the price margin between that at the farmers' level and that at the producers level would not be too high. "It can be imagined that now the price of seaweed at the farmers' level is only Rp5,000 per kg but at the exporters' level it reaches one US dollar (about Rp10,000). It is the high price margin that we are going to lower," he said.

        After the restriction of dried seaweed exports in 2012, and the total stoppage thereafter, Victor P H Nikijuluw said, the government would also gradually stop the importation of carrageenan. "We are importing a lot of carrageenan but I don't know the exact volume. I say a lot because large food and cosmetic companies in the country are still importing the product," he said.

        For now, imports could not yet be stopped because industries at home could not yet meet their need for carrageenan produced at home. "Those who produce soap, toothpaste and cosmetic cream are all still importing carrageenan. We (DKP) have talked to the chief economic minister on the efforts to build seaweed industries at home. And he supported the idea if the need at home could already be met," he said.***2*** (T.A014/A/HAJM/21:38/a014) (T.A014/A/A014/A/A014)