Aquaculture Market in Indonesia

Aquaculture Market in Indonesia

Fish Farms Markets in Indonesia

The digital revolution that has swept across many industries over the past decade has now reached Indonesia’s aquaculture industry. Many of these innovations have been made possible by millennials. They have created a range of new products, services and business models that are unheard of in the industry.

Stakeholders often point out that Indonesia is a great place to grow aquaculture. This is due to its geographic advantages. It has also been called a “sleeping giant”. However, Indonesia’s aquaculture production ranks third after India and China. Aquaculture production reached 5.4 Million Tonnes in 2018, which was worth USD 11.9 Billion (FAO 2020).

However, there are still challenges. These include access to capital and production inputs, production problems such as feeding inefficiency, disease, quality, and cultivation technology, and post-production issues like low farm gate prices because of long supply chains. Infrastructure and inadequacies in policies are also a problem.

Aquaculture is still a popular sector as the demand for protein increases. Many startups are working to solve the problems in each segment. Despite not having a background in aquaculture, these startups are bringing fish farming to life.

Why Indonesia’s Fishery Industry is Growing Fast

Geography

Indonesia lies between the Pacific Ocean and Indian Oceans, with a large sea area. It is third in the world with a territorial sea and an exclusive economic zone of 2.7 million km2. It also has a tropical rain forest climate, which makes it suitable for tropical marine biology living. The short life span of fish is very short and they mature quickly. The environment in Indonesia is favorable for artificial fecundation and fish growth. Indonesia is located in the area with the highest concentration of ocean currents. The movement of these currents brings lots of bait fish and creates a favorable ecological environment for all types of fish. It also forms three of the most famous major fishing grounds, Indian Ocean, claws, and the eastern sea.

The Government Policy

The Indonesian government is looking at the seafood industry to boost national food security. It also wants to increase Indonesians’ protein intake. Therefore, more attention is being paid to fish and fish products as essential components of Indonesian diets and sources of high-quality protein. The Ministry of Marine Affairs and Fisheries of Indonesia and Wageningen University and Research Center launched a three-year project to increase the accessibility and safety of fish and fish products for Indonesian consumers. To improve the profitability and viability of small-scale fish farms, improvements have been made to their handling techniques, including those of traders and fishermen.

Living habits

After rising quickly over the past decade, Indonesia’s per capita consumption of fishery products in 2012 was 33.8 kilograms. Jakarta declared a “Blue Revolution,” an initiative that was launched in 2010 to increase sales to global markets. While major exporting countries such as Canada and Norway are trying to increase their sales to Indonesia, with a combined total of $412 millions in 2012, Indonesian exports only make up a small fraction of the country’s exports,

Types of fish farms in Indonesia

The majority of global aquaculture production is from small and medium-sized fish farm, which are primarily located in Asia. This country contributes 92% to the world’s total aquaculture production volume. A variety of fish species can be raised in fish farms. The most popular species are cod, salmon, carp and tilapia. There are many types of fish farms in Indonesia that use different aquaculture methods.

Integrated Recycling Systems

This is the most extensive method of “pure” fishing farming. These large plastic tanks are placed in a greenhouse and are used for fish farming. Near the plastic tanks are placed hydroponic beds. The plastic tanks contain water that is circulated to hydroponics beds. Here, the fish meal waste is used to supply nutrients to the hydroponic plants. Most hydroponic plants are herb varieties, such as basil and parsley.

Cage System

This method uses cages that are placed in ponds, oceans, or lakes that have fish. This is often referred to as “off-shore cultivation”. The cages are used to keep fish alive and allow them to be harvested artificially. The cage system has seen significant improvements over the years, which have helped to reduce environmental and disease risks.

Composite Fish Culture

This type of fish farming allows for both local and imported species to coexist in one pond. Although the number of species will vary, it can sometimes be six or more fish species per pond. To ensure species coexistence and less competition for food, the fish species are carefully selected.

Irrigation Ditch and Pond Systems for Raising Fish

A ditch or a pound should be available to fish farmers in order to store water. This system is unique in that the waste from fish can be used at a small scale to fertilize farmers’ fields. Many customers who run aqua farming businesses also have organic fertilizer production lines. Fish waste mixed with other organic waste could be granulated to make granular organic fertilisers for sale. It is called “Recycle Economy”. The pond can also be self-sustaining on a larger scale by growing plants and algae for fish food.

Sustainable Development of the Fishery Industry in Indonesia

Environmental protection becomes increasingly important with the expansion of Indonesian Fisheries. The long-term viability and sustainability of Indonesia’s marine resources is at risk from climate change, unsustainable fishing methods, pollution, mine discharges, poor watershed management, and other factors such as climate change. The Indonesian government supports and educates coastal fishermen to develop sustainable fishing practices and protect their coastal resources. The environmental impacts of fish farms must be minimized due to water pollution, antibiotics and chemical use, as well as escapes from farmed fish. The government has supported efforts to empower coastal communities to take more responsibility for managing their fisheries resources sustainably.

Promoting sustainable fishing means educating fishermen about the impacts of different fishing methods. Marine surveys show that overfishing is threatening almost three-quarters of Indonesia’s coral reefs, while destructive fishing methods like the use of dynamite are threatening nearly half of the country’s reefs.

Although it will be challenging to achieve fishery sustainability in Indonesia, a strategy that works could have a huge impact on other developing countries who are facing the same institutional problems as Indonesia.

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