Investing in Indonesias

Fisheries sector
An overview of opportunities,
capabilities and provisions

Version: December 2015

2015 by Indonesia Investment Coordinating Board (BKPM). All rights reserved

Contents
Opportunities: Tuna, Shrimp, Crab, Seaweed, Cold Storage, and Shipyard/Ship-building

Introduction to the sector 3

Why Indonesia? 4

Market opportunities 5 - 13

Existing and future capabilities 14

19

Government provisions and support 20 - 25

Six good reasons to invest in Indonesias Fisheries sector 26

The Investment Coordinating Board of the Republic of Indonesia

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Indonesias geography and location
Indonesia lies at the intersection of the Pacific Ocean and the Indian Ocean. Over
half of all international shipping goes through Indonesia waters.
Indonesia is one of the most populated countries in the world (currently 235 million
people). Indonesia accounts 40% of total ASEAN population.

As the largest archipelagic country in the

ASEAN
world, Indonesia comprises more than 17,500
islands spread over nearly 6,500km from east
to west. Its has the worlds 4th longest
coastline. Indonesias Java island alone is as
big as England and home to 125 million
inhabitants, including its capital Jakarta,
which can be reached via direct flights from
numerous locations worldwide, including:
Singapore: 1h40min Kuala Lumpur: 2h50min

INDONESIA Bangkok: 3h30min Hong-Kong: 5hrs

Sydney: 6h50min Tokyo: 7hrs

Seoul: 7hrs Dubai: 7h50min

Sumatra Java Kalimantan Sulawesi Nusa Tenggara Papua
Beijing: 7h20min Amsterdam: 14h20min

The Investment Coordinating Board of the Republic of Indonesia

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Introduction to Indonesian fisheries
Indonesia is currently the
Worlds Largest Fisheries Producer
Worlds Largest Source of Seaweed
Worlds 7th Largest Exporter of Processed and Canned Tuna
Largest Shrimp Producer in South East Asia
The fisheries sector provides vital
support to coastal economic
development, creating employment
in fish catching and in onshore
processing, as well several thousand
indirect jobs.
Indonesia lands approximately
106,000 tonnes of pole and line
caught tuna a year, though it is
estimated that only 10-20% reaches
market labeled as pole and line
caught. Hence it has been one of
the least regulated subsectors.
Worlds 4th Longest
Coastline
Challenges in the sector
remain:
Up until early 2014, almost Addressing illegal, unreported
5,000 foreign fishing boats and unregulated (IUU) fishing.
were operating illegally in
Indonesian waters. Revolutionizing fisheries
management in the long term.
New regulations and
reformations on licenses have International Standards
been introduced to sustainably include: World Wildlife Fund
manage the sectors supply (WWF), International Pole and
chain, as well as to maintain Line Foundation (IPNLF) and
the welfare of as many as 2 the Marine Stewardship
million local fishermen. Council.
The Investment Coordinating Board of the Republic of Indonesia
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Why Indonesia
MARKET
OPPORTUNITIES
Indonesia is the world largest
source and fisheries producer,
including tuna, seaweed and
shrimp.
Shipyard/Ship-building realised
investment to date is worth
USD 214 million (170 projects)
Indonesias fisheries sector is
potentially worth USD 32 billion
EXISTING & FUTURE GOVERNMENT
CAPABILITIES PROVISIONS & SUPPORT
60,000 Fish Processing Units Continuously enforcing and
are available throughout promoting sustainable fisheries
Indonesia programme
Lowest operating costs in Revitalising existing land for
ASEAN-5 (Thailand, aquaculture of seaweed,
Philippines, Malaysia, Vietnam shrimp and crabs.
and Indonesia) for a food and
beverage manufacturing plant. Open FDI investments include:
aquaculture, seaweed
Host to leading centres of processing industry and
excellence, including a shipbuilding/shipyards and cold
prestigious government-funded storage facilities.
specialist fisheries college
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MARKET OPPORTUNITIES

Image source: http://www.flickr.com/photos/arditpg/3590772699

The Investment Coordinating Board of the Republic of Indonesia
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Abundant wealth in Indonesian territorial waters
Global future demand is on the rise and will be dependent on these sources
Fisheries sector Number of Fisheries
Establishments by Investment
contributed 50 Facility Status, 2009-2013
40
Worlds 40
7%
4th or USD 7.84 billion to the
30

longest coastline 20
Indonesian economy in 11
10
2014
5,500 Year
2010
% of GDP
6.00
0
2009 2010 2011 2012 2013

rivers and lakes 2011 7.00

Foreign Direct Investment
2012 6.50
Domestic Direct Investment
2013 6.90
17,508 islands 2014
2015 2019
6.97
7.2%
Other Fisheries Establishments

(a land mass spanning Target annually

1,919,440km2 between the Indian
+60,000 Fish Processing
Source: KKP KPDA (2014)
and the Pacific Oceans) Units are available
GDP (2014) USD 888.5billion throughout Indonesia:
As the largest archipelago country Current fisheries establishments Sumatra : 13,602
in the world, Indonesia has huge and investments in Indonesia are Java : 26,805
potential and abundant wealth in its mostly run by domestic seafood Kalimantan : 8,611
territorial waters. 25% of global processing companies including Bali & Nusa Tenggara : 4,947
fisheries demand rely on this small and micro businesses. Sulawesi : 4,674
countrys and the regions Maluku & Papua : 1,524
production. Total (2014) : 60,163
Source: CEIC Data (2014), BPS (2014), KKP DirGen Fisheries
Processing and Marketing (2014)
The Investment Coordinating Board of the Republic of Indonesia
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Increased production capacity spurring from
increased domestic consumption
The Indonesian fisheries sector contributed almost The Government through its Midterm Plan* has
7% or USD 7.84 billion to the countrys economy in indicated its targeted volume to reach 19.5
2014. million tons of fish by 2019. Through the plan,
the Indonesian Government states three targets
Domestic fish consumption** grew to 38.0 for increasing fisheries products and fish
kilograms (kg)/capita in 2014 from 35.2 kg/capita in processing industry:
2013. The average monthly expenditure per capita
for fish rose to IDR28,356 (or approx. USD 2.83) in 1. Achieve GDP growth of 7.2% annually in the
2013. This is the highest level since 2000 and an fisheries sector
increase of 6.6% from 2012. 2. Reach fish production volume of 19.5
million, and USD 9.5 billion in export value
In order to meet its 2019 production target, by 2019
Indonesia will require approximately 90 billion 3. Increase the volume of processed fisheries
seeds derived from 15.8 million species. products by 6.8 million tons by 2019
19.5
Annual Domestic Fish Consumption per capita (Kg)

16.2
35.14
33.89
32.52
30.48 13.4
29.08
Open 10.6 11.1
10.2
Water 0.40
0.34 0.37 0.39
0.49 0.30
Targeted Total Volume and Fish Production
Production of Fish Capture (million ton) 2008-2013 (million ton) 2014 2015
Marine Source: RPMJN 2015 - 2019
Fisheries
4.70 4.81 5.04 5.35 5.44 5.71

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: RPJMN 2015-2019 p.178, **KKP Buku Kelautan dan
Perikanan (2013) and BPS (2014)
The Investment Coordinating Board of the Republic of Indonesia
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Enough fish for everyone!
According to the FAO, global seafood
consumption is estimated to increase to 151.8
million tons by 2030, from 122.9 million tons in
2009. Globally, a more sustainable and tight
approach to fishing will also be applied as wild-
caught consumption is set to reduce.

In South East Asia alone, fish consumption is

projected to reach almost 20 million tons.

Seafish.org suggested that aquaculture production is expected to continue to expand on all continents, with
variations across countries and regions in terms of the product range of species and product forms. Asian
countries is set to continue dominating world aquaculture production, with a share of 89% by 2021.
Source: FAO Fish to 2030 (2013), Seafish.org (2012)
The Investment Coordinating Board of the Republic of Indonesia
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Indonesia is the worlds Top 7* global exporter of
canned and processed tuna
Indonesia Tuna Fish Production by Type (2010 - 2013) in tons
Indonesia produces mainly skipjack and
481,014
yellowfin tuna. Between 2012 - 2013, skipjack 429,024 Skipjack
production increased by 12% reaching almost 372,211
348,897 Yellowfin
500,000 tons, while yellowfin increased by
almost 13.5%, reaching just over 200,000 tons. Bigeye
215,706 Albacore
176,754 190,238
Indonesias tuna mainly goes to the UK, Bluefin
112,803
Germany, the US, and Japan. Japan remains Other fish
Indonesia biggest importer.
2010 2011 2012 2013
In 2012, Indonesias canned tuna contributed 6%
to the UK total global imports, followed by 8% to
Germany, 4% to the USA, and 19% to Japan. Indonesia's Canned Tuna Exports to UK, Germany,
USA and Japan (2010 - 2012), in tons
The total export volumes from Indonesia to these 13,251
countries have been generally stable, which was
130,000 tons in 2008, and it reached 200,000 10,494
10,001
10,487 10,592
9,374
tons in 2013. Meanwhile, the value of exports UK
7,746
was USD 347 million in 2008 and more than 6,655 Germany
5,943
doubled to reach USD 765 million in 2013*. 5,599 USA
Japan
There are still plenty of opportunities in the tuna 2,053
1,088
processing market.
*Thailand, Ecuador, Philippines, Spain, China, Mauritius and Indonesia.
2010 2011 2012
Source:: DirGen Processing and Marketing of Fisheries Products, Ministry of
Marine Affairs and Fisheries, Intracen (2012).
The Investment Coordinating Board of the Republic of Indonesia
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Indonesian shrimp exports are expected to rise to
meet with global demand
Total Indonesia Shrimp
Production (ton)
MT=Metric tones 785,900
CAGR 13% 699,000
639,589

400,386 415,703
380,972
338,060

2009 2010 2011 2012 2013 2014 2015

(Estimated) (Target)

Global demand for Indonesian

shrimps is estimated to be around
560,000 570,000 tons yearly.

In 2013, 65% of total fisheries

exported to the US was shrimp,
Shrimp is the most important fisheries commodity, representing
valued at nearly USD 900 million,
15% of the total value of internationally traded fishery products.
and is expected to increase in 2015.
The South East Asian region champions shrimp production; that
includes Thailand, Vietnam and Indonesia.
Most Indonesian shrimp are either
exported in frozen form or with heads
Shrimp production in 2013 was estimated to range between 11.2
and shells removed.
and 17.6 million metric tones. Farmed shrimp is a key driver of
global aquaculture supply, which exceeded wild caught supply for
Exports are expected to rise in order
the first time in 2014.
Source: KKP (2014),
to meet global demand.
https://www.undercurrentnews.com/spotlight/shrimp-ems/
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Enforcement on sustainable crab aquaculture
World Crustaceans Production 500 Total Crab and Blue Swing Crab
7,000,000 400 Export
6,014,947 300 414.3 Volume
6,000,000 329.7 359.3 (ton)
200
5,000,000 100 34.172
28.211 28.09 Export
4,000,000 0 Value (USD
Marine areas 2012 2013 2014 million)
3,000,000 Estimated
Inland waters
2,000,000
Traditionally, Indonesia had relied on
1,000,000 502,883
nature and wild-catch for its crab
- production, which caused shortages
2009 2010 2011 2012 2013
of current crab family population.
According to the FAO, aquaculture in Asia is dominated As a result, in 2014 the ministry
by fin-fishes (64.6%), followed by molluscs (24.2%), enacted a new regulation enforcing
crustaceans (9.7%) and miscellaneous species (1.5%). more sustainable aquaculture in this
In 2013, 6.5 million crustaceans were cultivated area.
worldwide, 95% of which came from inland waters.
Of all fishery products exported, which
Within the Indo-Pacific waters, there are more than 234 was mainly to China and the US, crab
types of crab. Indonesian waters have approximately has the highest value because the
124 species and up to 7.2 million tons per year are end product was ready-packed for
produced, though only 40% are caught for retail. The value of exports continued
consumption. increasing steadily between 2012-14.
Source: KKP Processing Crab Products (2014), FAO (2014)
The Investment Coordinating Board of the Republic of Indonesia
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48% of the worlds Carrageenan Seaweeds originate
from Indonesian waters
Wet Seaweed Production and Mid Term Plan* Targeted Volume The Potential of Seaweed
Farming Land in Indonesia
14,000,000 Wet Seaweed Production (ton) 200
Region Potential Size
Export Volume (Kg) 11,780,000 180 (Hectare)
12,000,000
Export Value (USD) 10,550,000 160
Aceh 104,000
10,000,000 9,224,706 9,410,000 140
8,350,000 North Sumatra 20,000

Millions
120
8,000,000 6,986,311 7,300,000 Riau islands 37,635
100
6,000,000 5,170,831 East Java 16,420
80
4,300,000
3,915,018
60
Bali 1,151
4,000,000
40 West Nusa Tenggara 22,270
2,000,000 *Targeted Seaweed Production
Volumes per Mid Term Plan 20 East Nusa Tenggara 10,086
- - South Sulawesi 250,000
2010 2011 2012 2013 2014* 2015 2016 2017 2018 2019
North Sulawesi 50,600
Indonesian wet seaweeds have been exported to Denmark, Hong Kong,
Central Sulawesi 106,000
US and The Philippines for further processing. By 2013, Indonesias annual
production of wet seaweed reached over 9 million tons, the majority of Southeast Sulawesi 83,000
which originated from the Eastern parts of Indonesia including Bali, Nusa East Kalimantan 15,520
Tenggara, Sulawesi and Maluku.
Gorontalo 2,850

Throughout the archipelago, there are 925,000 hectares of land available Maluku 206,000
for investment in seaweed farming. At the same time the government is Papua 501,000
also committed to increasing seaweed production to almost 12 million tons
Total land available 925,523 ha
in 2019. for farming
Source: Fisheries Directorate General of Business and Investment (2014),
BPS (2014), *Mid Term Plan / RPJMN (2015-2019 p.178).
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Potential of Indonesian shipbuilding industry
Currently, only 200 shipyards companies are capable of producing new
vessels and to repair and refit vessels
Realised investments to 12 locations currently
date are worth: awaiting for FDIs are:
USD 214 million Riau
and is expected to reach USD 215
million by end of 2015. Riau islands
South Sumatera
Between 2010 and 2014, realized Lampung
investment in the shipbuilding West Kalimantan
industry in Indonesia amounted to Central Java
USD 212.5 million with a total of During 2014/15, BKPM has
received strong interest in East Java
107 projects being implemented.
shipbuilding investment worth North Sulawesi
Top ten FDIs were from: USD 9.3 billion, with a potential Papua
for direct employment of 700 Batam Free Trade Zone
Singapore Germany thousand people. Wongsorejo Industrial
Britain Australia Estate
New Zealand Based on BKPMs analysis,
Mauritius Banyuwangi Industrial
Malaysia Sweden each investment of Estate
South Korea Japan USD 1 million can Java Integrated Industrial
potentially absorb 75 Port Estate (JIIPE) in
direct labor. East Java
Source: BKPM (2014)
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EXISTING AND FUTURE CAPABILITIES

Image Source: Tribune News

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Success story: Tilapia hatchery and fillets
A successful partnership between local community, foreign investor and government

Originating from Switzerland, PT.

Aquafarm Nusantara is a foreign investor
which initially established in 1988 in
Central Java. Ten years into its
investment, the company built a hatchery
of 30 hectares in North Sumatra.

In order to sustain the population of fish in the waters of Lake

Toba, Aquafarm collaborates with the Ministry of Maritime Affairs
and Fisheries, the local Head of Regency, the local Centre of
Aquaculture and the local Protestant Church Community to Canada, Singapore Domestic
stock freshwater Tilapia fish, with as many as 120,000 seeds in 2% , 1% Consumption,
9.83%
Taiwan,
the waters Pangururan Samosir, North Sumatera, annually. 4%

Aquafarm has employed more than 4000 staff, both in Central

Java and North Sumatra, with the majority of workers coming
from the local community in the area where Aquafarm operates.
Europe,
The end product is a frozen tilapia fillet. The product is packed 30%
with a retail brand Regal Spring Tilapia. Only 10% of its tilapia
products are consumed domestically. 83% is exported through US, 53%
the port of Belawan to the US and Europe, and the rest goes to
Singapore, Taiwan and Canada.

Source: http://aquafarmnusantara.com/company-profile/
The Investment Coordinating Board of the Republic of Indonesia
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Technologically-advanced cold storage is needed to
stock fresh fish
Of the 3000 fishing ports available in Indonesia, some
small ones do not have proper cold storage and ice-
making facilities. This leads to considerable spoilage of
fresh stocks.
The Government of Indonesia has the aim to upgrade
many fishing ports in off-grid and under-serviced areas to
'eco-fishing-port' status, with both financial and energy
self-sufficiency. It is also committed to mobilising
renewable energy to further expand the cold chain in the
regions.
There are also plans to catalyse the financing of solar-
powered fish cold-storage and ice-making installations
for eco-fishing-ports in Indonesia.
Source: http://www.pipp.djpt.kkp.go.id/index.php/profil_pelabuhan
Success Story:
PT Contained Energy Indonesia has
developed and successfully deployed stand-
alone, off-grid, 100% solar-powered cold
storage facilities, designed for use in remote
communities.
The project took place between 2013 and 2014,
with a budget of 296,000, including co-funding
from the European Union and Switzerland.
Source: XXXX
The Investment Coordinating Board of the Republic of Indonesia
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The corporate landscape
What are the investors saying?

PT Sumber
To produce world-class Samudra Indoneisa Indonesia offers big
premium Tilapia while opportunities through
building strong Started in 2015, the company its access to natural
communities wherever we invested USD 15 million in fish resources, a large
are Restocking of fish processing business. The annual work force and a
seeds is a policy of how we production capacity is targeted at market of huge
manage Lake Toba in a 36,000 tons with Europe as the potential. It is our
sustainable manner without focus export market. The vision to become the
damaging the environment investment is expected to absorb market leader in the
but contribute greatly to about 550-650 direct labour and frozen food industry
local communities. 2200-2600 indirect labour. renowned for high
quality products, and
As the largest shrimp we are open to
farms in Indonesia, collaboration with
we guarantee the best partners with a similar
quality of shrimp for goal.
export and have the
most advanced
techniques shrimp
farming in Indonesia.
Source: http://fisheriesimprovementindonesia.org
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Food Manufacturing:
Indonesia leads the way with operating costs
Data from the Financial Times has Total annual operating costs:
found that Indonesia has the lowest Food & Beverages Manufacturing Plant*
operating costs for a typical Food &
Beverages Manufacturing plant* of all
the 5 key ASEAN markets, at just over
US$1.51m per annum.

Indonesia is therefore 39% lower than

the average of US$2.47m per annum
across the 5 ASEAN countries.

Out of these markets, Indonesia has

the 2nd lowest labour costs and the
3rd lowest utility costs it the only
market with relatively low costs on both
the labour and utility fronts.

Source: fDi Benchmark (Financial Times)

* Based on a food and beverage manufacturing plant with a headcount of 200, comprised as follows: 186 production
operatives (16 highly skilled, 70 skilled and 100 unskilled); 6 quality control specialists, 3 secretaries; 2 office service
specialists; 1 head of manufacturing; 1 production manager and 1 quality control manager.

The Investment Coordinating Board of the Republic of Indonesia

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Boat Building:
Indonesias labour costs lowest of the ASEAN-5
Data from the Financial Times has Total annual labour costs:
found that Indonesia is the most cost- Boat Building*
competitive country among the 5 major
ASEAN markets when it comes to
labour costs for a typical boat-building
operation.

Indonesia has the lowest operating

costs of all the 5 locations at $668,856
per annum.

Indonesia is therefore 20% lower than

the study average of $833,419 per
annum.

Source: fDi Benchmark (Financial Times)

* Based on a boat building operation with 150 employees, comprised as follows: 40 Unskilled Production Operatives; 16 Skilled
and Highly-Skilled Production Operatives; 40 Semi-Skilled Craftspeople; 20 Skilled Craftspeople; 9 Engineers; 8 Warehouse &
Distribution Operatives; 4 Secretaries; 3 Supervisors; 3 Quality Control Specialists; 3 Technical Drawers and 1 of each of the
following: Facilities Specialist; Head of Manufacturing; Production Manager and a Quality Control Manager

The Investment Coordinating Board of the Republic of Indonesia

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GOVERNMENT PROVISIONS AND SUPPORT

Image source: http://worldcocoafoundation.org/wp-

content/files_mf/aboutcocoatextpagesweb.jpg
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Key Industry Ministries and Associations
Fisheries
Ministry of Marine Affairs
and Fisheries / Kementerian
Kelautan Dan Perikanan
(KKP)
KKP is the main authority
mandated to organise marine
affairs and fisheries affairs
within the Indonesian
government.
http://kkp.go.id
The Bureau of Logistics
or Badan Urusan Logistik
(BULOG)
A state-owned company in
Indonesia which deals with
food distribution and price
control.
www.bulog.co.id
Fishery Harbours
Information Centre /
Pusat Informasi Pelabuhan
Perikanan (PIPP)
PIPP informs the dynamics of
fishing ports throughout
Indonesia to fisheries and
marine stakeholders through
the following website:
www.pipp.djpt.kkp.go.id/
Indonesia Aquaculture
Society or Kumpulan
Akuakultur Indonesia
Protecting the domestic
manufacturing industry, KADI
deals with importation of
dumping goods and subsidies
issues.
www.aquaculture-mai.org
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Fish Quarantine and
Inspection Agency / Badan
Karantina ikan, Pengendalian
Mutu dan Keamanan Hasil
Perikanan (BKIPM)
Controls the safety of fishery
products for exporting
purpose. The body issues
Approval for Loading letter (or
Surat Persetujuan Muat).
www.bkipm.kkp.go.id/bkipm/
Yayasan Masyarakat dan
Perikanan Indonesia (MPDI)
MPDI is a non-profit
organisation supporting the
sustainability of Indonesian
fisheries in order to achieve
the standards by WWF and the
Marine Stewardship Council
certification.
http://www.mdpi.or.id
Indonesia Fisheries Public
Company / Perusahaan
Umum Perikanan Indonesia
A state-owned company
specialising in the sea
transportation of fisheries
products. The company
partners with fishermen and
small and micro businesses in
the country.
//http://bumn.go.id/perikananin
donesia
Fisheries Businessman
Association or Gabungan
Asosiasi Pengusaha
Perikanan Indonesia
(Gappindo)
A complete list of Fisheries
sector Association is available
through the following Ministry
of Marine Affairs and Fisheries
link:
http://kkp.go.id/index.php/200
8/02/02/daftar-
himpunanasosiasi-
perikanan/?print=pdf
22
Key Industry Ministries and Associations
Fisheries
Batam Shipyard Offshore and
Offshore Association (BSOA),
was established on 7 August
1997 as a non-profit
organization by shipyard
companies which became a
pioneer of the growth in
shipbuilding and offshore
industries on Batam island.
http://www.bsoa-btm.org
Indonesia Chambers of
Commerce / Kamar Dagang
Indonesia (KADIN)
KADIN is focused on all
matters relating to trade,
industry and services, offering
a strategic forum for
Indonesian entrepreneurs. It is
privately financed, hence an
independent spokesperson of
private sector interests.
http://www.kadin-
indonesia.or.id/
Fishing Vessel Crew The Centre of Brackish National Agency of Drugs
Manning Agents Water Aquaculture or and Food Control or Badan
Balai Perikanan Budidaya Air Pengawas Obat dan
Payau (BPBAP) Makanan (BPOM)
http://www.molajaya-
fishingwork.com The Centre of Fresh Water
Aquaculture or
Balai Benih Air Tawar (BBAT)
http://www.worldfishing.net/dire
ctory-entries/fishing-worker- Technical Implementation Communicates health and
agency Units under the Directorate safety aspects including the
General of Aquaculture danger of chemical substances
responsible for sustainable on fisheries products.
aquaculture and production.
http://www.pom.go.id
Association of Processing
and Marketing of Fisheries
products / Asosiasi
Pengusaha Pengolahan dan
Pemasaran Produk Perikanan
(AP5I)
The association promotes
fisheries products
manufacturing and marketing
and is based at the Indonesia
Chambers of Commerce /
Kamar Dagang Indonesia
(KADIN)
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Centres of Excellence
Fisheries
National College of
Fisheries and Technology
The school is under the
auspices of the Ministry of
Maritime Affairs and Fisheries.
http://www.stp.kkp.go.id/
Universitas Padjajaran
The Universitys fisheries
department was established in
1965, under the Agriculture
Faculty
http://fpik.unpad.ac.id/
The Investment Coordinating Board of the Republic of Indonesia
Universitas Diponegoro
The Faculty of Fisheries and
Marine Sciences at the
Universitas Diponegoro was
established in 1968
http://www.fpik.undip.ac.id/
Sidoarjo Fisheries
Academy Politechnic
Sidoarjo Fisheries Academy
was established in 2002 after
the formation of the Ministry
of Sea Exploration and
Fisheries in 1983.
http://apsidoarjo.ac.id
24
Halal certification process
Halal certification is an important requirement to sell food and drinks products in the
Indonesian market because nearly 90% of the population is Muslim, representing 13%
of the Muslim population worldwide.

Company 2

1 3 MUI (Ulama
LPPOM MUI 4 Council)
5
1. Company applies for Halal certification to LPPOM MU
2. LPPOM MUI audits the company
3. LPPOM MUI reports to MUI to obtain Fatwa Halal
5 4. MUI releases the Fatwa Halal
5. LPPOM MUI releases the Halal Certificate

IMPORTANT! The company needs to get permission from

BPOM to put Halal logo on the label

The Investment Coordinating Board of the Republic of Indonesia

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Indonesias Special Economic Zones Open for Fisheries
(Indonesian: Kawasan EkonomiKhususor KEK)

Central Sulawesi:
North Sumatra: East Kalimantan: Automotive industry, heavy
Processing of CPO, rubber) Processing of CPO, coal movers equipment
Textile products (garment and minerals Electronic components
and apparels), fertilizers and Agribusiness
chemicals. Mining North Maluku:
Logistics Logistics Tourism
Tourism Processing of
fisheries products
Logistics

North Sulawesi:
Processing of fisheries
South Sumatra: products, agrobusiness
Processing of CPO and Textile products (garment and
rubber apparels), fertilizers and
West Nusa Tenggara:
West Java: chemicals.
Tourism
Tourism Logistics

Source: National Mid-Term Plan (2015-2019)

The Investment Coordinating Board of the Republic of Indonesia
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Key Regulations
BKPM together with the Ministry of Marine Affairs and Fisheries can provide you with
further details on specific pieces of regulation.
Law or Regulation Number:
Presidential Regulation No. 81/2005 on the
Coordinating Board for Security in the Sea
Law No. 45 Year 2009 (an amendment of
previous law No. 31 Year 2004)
Decree of the Minister of Marine Affairs and
Fisheries No. 10/PERMEN-KP/2015
(Amendment of 56/PERMEN-KP/2014)
Decree of the Minister of Marine Affairs and
Fisheries No.Kep.17/MEN/2015
Decree of the Minister of Marine Affairs and
Fisheries No. 01/PERMEN-KP/2015
Decree of the Minister of Marine Affairs and
Fisheries No. 02/PERMEN-KP/2015
Decree of the Minister of Marine Affairs and
Fisheries No. 03/PERMEN-KP/2015
Decree of the Minister of Marine Affairs and
Fisheries No. 14/PERMEN-KP/2015
Decree of the Minister of Marine Affairs and
Fisheries No. 17/PERMEN-KP/2015
Source: http://infohukum.kkp.go.id,
http://www.fao.org/fishery/legalframework/nalo_indonesia/en#tcNB012F
The Investment Coordinating Board of the Republic of Indonesia
Concerning:
Establishment of the Coordinating Board for Security in the Sea
(BAKORKAMLA) in order to enforce the security of Indonesian waters.
All fisheries and marine related affairs
Temporary Moratorium on Fisheries Licensing Business in the Indonesian
waters. Currently until October 2015, but subject to latest development.
Monitors the water quality standards for Indonesian Shellfish Sanitation
System
Protection on Lobster (Panulirus spp.) , Crab (Scylla spp.) and swimming crab
(Portunus pelagicus spp.)
Ban on the use of fishing gear such as trawler (trawls) and seine nets in the
fishery management area of Indonesia
Delegation of authority to the Indonesia Investment Coordinating Board
(BKPM) One Stop Shop on granting of Aquaculture Business Licenses
Any 2015 Marine and Fisheries related affairs are: (a) handed down to the
provincial governors in the framework of de-concentration, and (b) assigned to
the Provincial or District / Town in the Framework of Assistance.
Criteria and/or conditions of income tax facilities for investment in certain
business fields and / or in certain regions on the marine and fishery sector
Further updates are available at http://infohukum.kkp.go.id
27
Criteria and/or conditions of income tax
facilities for investment
As per Decree of the Minister of Marine Affairs and Fisheries No. 17/PERMEN-KP/2015
No Business Field Minimum value of Minimum Minimum absorption
Investment output to be of workforce
(in Indonesian exported
Rupiah - IDR) (volume)
1 Aquaculture of marine fish 80% 100 people, 90% of
IDR 25 billion which must be
Indonesian workforce
2 Floating net aquaculture of freshwater fish IDR 10 billion n.a.

3 Cold storage facility for fish products IDR 25 billion

4 Processing of fish products into floss, paste or surimi IDR 25 billion

5 Processing and preservation of fish and aquatic fish 50 people, 90% of

IDR 30 billion 50% which must be
(except Shrimp or Prawns) and packaged into cans
Indonesian workforce
6 Processing and preservation of Shrimp or Prawns and IDR 30 billion
packaged into cans
7 Cold storage facilities for other types of fish products IDR 20 billion

8 Processing and preservation of other types of fish IDR 15 billion 30%

Tax holiday will apply if a minimum amount of investment is IDR 1 Trillion*

*Please consult with BKPM for further information.

The Investment Coordinating Board of the Republic of Indonesia
28
A range of incentives available including:
BKPM will provide advice on which incentive is applicable for fisheries sectors
TAX
ALLOWANCE
Government Regulation
No.18/2015
30% of investment value
Reduction of corporate net income
tax for 6 years, at 5% each year.
143 business segments
Specific requirements incl.:
minimum amount of
investment value and
workforce, and certain project
location (especially outside
Java island).
Source: BKPM (2015)
*Terms and conditions apply
TAX IMPORT DUTY
HOLIDAY FACILITY
Ministry of Finance Regulation Ministry of Finance Regulation
No. 159/PMK.010/2015 No.176/PMK.011/2009
A variety of sectors are covered in
On machines and materials used
this Regulation including
for production purpose
fisheries.
Period of tax holiday: 5-15 years
2 years import duty exemption or 4
(Previously it was for 10 years but
years for companies using locally-
it is currently extended for up to 20
produced machines (min. 30%).
years).
Industries that produce goods
and/or services, including:
Tourism and culture
Minimum amount of investment is:
Public transportation
IDR 1 Trillion
Public health services
Mining
Reduction of tax up to 100%*
Construction
Telecommunication
Port
The Investment Coordinating Board of the Republic of Indonesia
29
Areas restricted or closed for FDI
Certain types of activities are fully or partially restricted when it comes to FDI. Key areas
relevant to the fisheries sector are detailed below.

Subject to a
RESTRICTED FDI recommendation from the
Minister of Forestry
AQUACULTURE* (or fish farming) is open to FDI providing
hatcheries and fish rearing area is located beyond 12 nautical Gathering (taking) of and
miles from the coastline to the open sea and/or towards the trade in (wholesale of)
direction of the archipelagic waters. ornamental coral from
nature for aquariums
*Require Partnership with Local
Businesses:
Subject to Special CLOSED to FDI:
License or Permits
Rearing of Fish*
Hatchery of Fish*
from the Minister of (1) Capture Fisheries
Manpower and (2) Fishing of species
Processing of Fishery Products
Transmigration: of fish listed by Convention
Manufacture of wooden ships
Manufacture of devices and on International Trade in
Fisheries business in Endangered Species of Wild
fittings of wooden ships for
transmigration areas Fauna and Flora
marine tourism and fishing
(3) Sea Sand Quarrying

The Investment Coordinating Board of the Republic of Indonesia

30
6 good reasons to invest in Indonesias fishery
sectors

Rising domestic and

global consumption of Abundant wealth in Increasing FDI in
fisheries products Indonesian territorial shipbuilding industry
waters offer various key worth USD 214 million
From 112 million tons in fisheries products and between 2010 - 2014
2003 to 150 million tons sources
(BKPM)
by 2030 (FAO, 2014)

Some of the 60,000 fish Most competitive Government

processing units and operating costs for commitment to
200 shipyards could be food and beverage supporting FDI in
benefitted from manufacturing aquaculture, fish
advanced technologies. in ASEAN-5 feeds, seaweed and
shipbuilding
(Financial Times)

The Investment Coordinating Board of the Republic of Indonesia

31
BKPM international representative offices
(Investment Promotion Centre):

Invest in...

For further information, contact us at:

Kantor Representatif EU DESK di This presentation has been developed with the
BADAN KOORDINASI PENANAMAN MODAL (BKPM) support of:
REPUBLIK INDONESIA The European Union (EU) Desk at BKPM, part
Jl. Jend. Gatot Subroto No. 44, Jakarta 12190, Indonesia of EU-Indonesia Trade Cooperation Facility
P : +62 21 5274 803 (TCF) projects.
E : eu.tcf@bkpm.go.id
eudesk.bkpm@euind-tcf.com
W : www.bkpm.go.id
www.euind-tcf.com/eudesk/
2015 by Indonesia Investment Coordinating Board (BKPM). All rights reserved