Indonesian Shrimp Export

Topics: Inflation, Indonesia, Politics of Indonesia Pages: 48 (15015 words) Published: June 4, 2011
Developed countries such as South Korea, Taiwan, Hong Kong, and Singapore rely on their commodity export as their main economy boosters. Even when the economy situation goes bad, these countries still can achieve surplus trade balance. Boosting economy through commodity export, like what Japan has done, has become popular among developing countries like Indonesia.

As an archipelagic country, Indonesia has infinite fishery potential. It is because Indonesia area is dominated by watery/ oceanic area, which is around 7.9 million km2, plus very wide shore line of 80.791 km2. This huge oceanic area has been utilized as embankment and fishery pond. This watery/ oceanic area is 7 times compared to the land area which is only 1.9 km2. It means that Indonesia overall area, 81% consist of unlimited fishery potential. So it is not impossible for Indonesia to dominate global fishery business.

In Indonesia, fishery sector has a very big opportunity. It is considered as one of promising non-migas export commodity that can contribute significant amount of national income. One of the main fishery export product that has become Indonesia’s prime product is shrimp. World shrimp consumption is increasing significantly while in Indonesia, the utilization of shore natural resource is still not optimal. Therefore, based on production side, shrimp prospect in Indonesia is very promising. It is proven through the data that shown for the last 25 years, shrimp export volume growth of Indonesia is 6.03%, and the value growth is 11.79%.

Indonesia’s biggest shrimp importer is USA. USA shrimp import from Indonesia is 80,479 ton in the year of 2008 with the import value of $550,773. The other country which also import large amount of Indonesian shrimp is Japan with the volume of 39,582 and import value of $337,681.00. Indonesia’s shrimp export to USA has market share of 47.34% from overall Indonesia shrimp export. However the number of shrimp export to USA decreased significantly from 54.79% to 52.76% by the year of 2009. Not only to USA, the number of shrimp exports to Japan and EU also decreased significantly. This decrease of Indonesia shrimp export market share in the international market is very important to be analyzed in order to find the possible solutions.

The government of Indonesia up until now is still focusing all shrimp production for international export purpose, mainly to Japan, USA, Europe, Hong Kong, and Singapore. However Indonesia’s shrimp export is facing drastic downturn lately. It is because several factors, domestically, and internationally. Domestically, there is huge decrease in the shrimp demand due to the unstable economic condition lately, especially after the Global Financial Crisis in the year-end of 2008. Not only that, the shrimp producer in Indonesia also faces a lot of challenges. The challenges that may threaten the local producer actually are very dilemmatic. For example, the ineffectiveness of Indonesia macro economics policies, unsupportive government actions, constantly increases interest rate, and many other causes. Externally, Indonesia’s shrimp export demand is also facing several problems, which are increasing production output from competitors’ side like Thailand and China. This increasing production capability from the competitors’ side is influencing importer countries to import from Thailand or China due to their lower price and highest quantity compared to importing from Indonesia.

The problems are not left unsolved though. Indonesian government has done various supportive actions in order to overcome such problems. The actions that government has done are quite various through several policies, such as sector policies, monetary policies, and also fiscal policies. The sector policies that the government has done is ultimately giving trainings and educations to petani tambak or shrimp harvester of how to harvest shrimp in the more effective and efficient way. Not only that, the...
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