INDONESIA DEVELOPS SEAWEED DOWNSTREAM

By Andi Abdussalam

Jakarta, May 12 (Antara) - Indonesia, a major world seaweed producer which exports about 90 percent of its seaweed production, is developing the downstream sector of the commodity to tap its added value in the export market.          For this purpose, the government will soon build 10 factories to process seaweed into flour and chips that would increase the added value of the commodity. So far, the country exports the commodity in the form of unprocessed dry seaweed.          "The country's production of dry seaweed at present is around 10 million tons per year and 90 percent of the production is exported," Maritime Affairs and Fisheries Minister Susi Pudjiastuti said on Monday.          Based on this fact, the Indonesian Seaweed Association (ARLI) hopes that the Indonesian government would formulate a program for the development of seaweed in the downstream sector to optimize the commodity's potential in various regions for the benefit of the country's economy.         "We support the government's efforts to develop seaweed in the downstream sector, and we hope that the government will prepare the  program maturely and seriously," Safari Azis, the chairman of the ARLI, stated over the weekend.            Minister Susi said processing factory should be built in every seaweed production center to produce seaweeds flour and chips.          Because the government is still in the process of developing downstream industry, it is not yet possible to ban exports of raw seaweed.          "This year we will start building 10 factories with credits of Rp10 trillion from financial agencies. Next year we might need another credit of Rp30 trillion," Minister Susi said.          She encourages companies in the marine and fishery sector to make use of the country's huge sea potentials.          Regarding the possibility of banning the exportation of raw seaweed and designing it for procession at home to tap its added value, the minister indicated that it is not yet possible to ban it.          According to Safari Azis, the need for raw seaweed in Indonesia could be met. Currently the need of industry is still small so that the production surplus could be exported.          As most of the seaweed production is still exported, ALRI hopes that the export of seaweed should not be burdened with export duties.         "Indonesia is one of the biggest seaweed exporters in the world because we have a large volume of production. If we can export it, we should not burden it with export tax," remarked  ARLI chairman Safari Azis on Friday last week.          Azis regretted rumors which have it that the exportation of raw seaweed will be banned, causing anxiety among business players. He said it could discourage them to develop their seaweed business.          An export ban, he said, can among others reduce the number of workers and the income of the people.      Indonesia has the potential to cultivate seaweed on 1.1 million hectares of water areas. The country's biodiversity of seaweed species is vast, amounting to more than 555 species, 45 percent of all seaweed species worldwide, including Glacilaria, Gelidium, Eucheuma, Hypnea, Sargassum and Turbinaria     According to Mukti Sardjono, an expert staff of the agriculture minister on  environment affairs, seaweed has high economic competitiveness and is Eco-friendly because it can reduce emission of gases.         "Indonesia is the world's third biggest seaweed supplier with a total production of 6.5 million tons in 2012. Therefore, we should optimize our efforts to develop seaweed," Mukti Sardjono said last year.          Based on the interim data of the Marine Affairs and Fisheries Ministry (KKP), the country's seaweed production in 2014 reached 10.2 million tons, up by three-folds compared with the production in 2010 which stood at 3.9 million tons.          This indicates that seaweed is a reliable commodity that needs to be developed by the people, particularly the community in the coastal areas.          Of the 55 seaweed species, two varieties, namely Eucheuma cottnii and Gracillaria spp, have been popular and developed so far to produce processed carrageenan and geltin.          Director General of Fish Processing and Marketing of the Ministry of Marine Affairs and Fisheries Saut Hutagalung said that besides the two types, there are other species which had promising business prospect, namely brown algae (alginate) and green algae (ulva) seaweeds. This is particularly for cosmetic industry.          The government, therefore, encourages industries and seaweed stakeholders to increase research and development efforts for the cultivation of the varieties which have high economic values.          In order to optimize the development of the downstream sector, said Safari Azis of the ARLI, the government should increase the commodity's competitive edge, utilize suitable technology, make adequate investment, and open market access.          If the domestic industry fails to compete with the overseas industry, the government should increase efficiency and productivity.          The Maritime Affairs and Fisheries Ministry (KKP) has stressed that the country will continue to promote the cultivation of seaweed, improve its quality, and increase its production quantity as the commodity has the potential to become one of the main foreign exchange earners.         "We will always make efforts to increase production quantity and quality. We support the scheme to make the sea as our front yard, as our future, and as the source of our foreign exchange earnings to strengthen the nation's economy," Slamet Soebjakto, the director general for Cultured Fisheries of  the KKP, remarked.          He noted that seaweed is one of the main commodities in the cultured fisheries sector. It is a mainstay commodity in fisheries production to boost the regional economy and improve the welfare of the coastal community.***3*** (T.A014/b003/B003) (T.A014/A/BESSR/Bustanuddin) 12-05-2015 23:15:4