AGUNG SUDARYONO Assoc, Prof,, Aquaculture Study Program Diponegoro University Semarang – INDONESIA

Secretary General, INDONESIAN AQUACULTURE SOCIETY

INTERNATIONAL WORKSHOP ON SATO UMI, PEKALONGAN, November 26-27, 2014 OUTLINE

I. STRATEGIC ROLE OF AQUACULTURE II. AQUACULTURE POTENCY III. AQUACULTURE DEVELOPMENT PERFORMANCE IV. ISSUES AND CHALLANGES OF AQUACULTURE V. DEVELOPEMENT STRATEGY OF COMPETITIVE AND SUSTAINABLE AQUACULTURE VI. CONCLUSION I. STRATEGIC ROLE OF AQUACULTURE

NATIONAL PROTEIN EMPLOYMENT INCOME NUTRITION SOURCE SOURCE SOURCE

High Competitive & Sustainable Aquaculture Products

3 18.00 I N 16.00

M 14.00 I L 12.00 I Aquaculture O 10.00 N Capture S 8.00

T 6.00 O N 4.00

2.00

0.00 YEARS 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

REALIZATION TARGET 4 INCREASING SEAFOOD DEMMAND

120120

Growing fisheries (0.7% per annum) Growing fisheries (0.7% per annum) Stagnant fisheries Pig 100 Stagnant fisheries

100 Production forecast (this study)

)

) ) • Fish to 2030 Production targets (national data) • Global consumption rises to 22.5 kg/y 80 • Global consumption rises to 22.5 kg/y

tonnes 80 tonnes tonnes Chicken • • GlGlobalobal consumptionconsumption remainsremains atat 19961996 levels levels (15.6(15.6 kg/y)kg/y)

6060 FishFishFish

4040

Production (million (million Production

Production (million (million Production Production (million (million Production ••TechnologicalTechnological advancesadvances inin aquacultureaquaculture •Baseline scenario 2020 •Baseline scenario ••EcologicalEcological collapsecollapse ofof fisheriesfisheries

1950 1960 1970 1980 1990 2000 2010 2020 2030 1950 1960 1970 1980 1990 2000 2010 2020 2030 YearYear Ye (1999) IFPRI (2003)Ye (1999) FAO IFPRI(2004) (2003) WijkstromFAO(2003) (2004) Wijkstrom (2003) source: Hall et al, (2011) Table, The Number of Aquculturists and Fishermen in 2011 Types of No Number aquaculture 1 Marine fishermen 2,700,000 2 Freshwater fishermen 490,000 3 Mariculture 517,340 Brackishwater 4 586,495 aquaculture 5 Freshwater ponds 1,623,700 6 Fixed cage nets 119,719 7 Floating cage nets 79,310 8 Ricefield-fisheries 417,370 Total 6,533,934

▪ Note: some 50% of Indonesian population live in the coastal zone and small islands ▪ Source : Ministry of Marine Affairs and Fisheries , 2012 Indonesia Fish Consumption Details, 2006-2011 (kg/cap/yr)

Marine Catches Aquaculture Total Year Fish Consumption Fish Consumption Consumption 2006 20 5 25 2007 20 6 26 2008 21 7 28 2009 21 8 29 2010 22 9 31 CAGR 06-10 2% 17% 5%

Source: Marine and Fisheries in Numbers, 2011 (KKP) FISH AS A STRATEGIC NATIONAL PROTEIN NUTRITION SOURCE

NO COMMODITY PRODUCTION Ann, Prod, Price/Kg in 2014 Protein Cost per g 2012 (ton) Rate (Rp /Kg) content (%) protein (%/year) 1 Cultured fish* 2,340,578 23.09 18,000 – 30,000 15.0 120 - 200 2 Chicken 1,400,470 9.35 26,000 – 35,000 18.5 141 – 189 (Broiler) 3 Cow 508,906 3.35 90,000 – 120,000 20.0 450 - 600 4 Cultured 396,073 1.89 60,000 – 200,000 20.0 300 – 1000 shrimp 5 Chicken (buras) 267,492 0.30 40 – 60 ribu/ekor 6 Goat 65,216 1.05 95,000 – 105,000 7 Egg 1,629 6.00 20,000 – 21,000 12,5 160 - 168

Note: •Freshwater fish: Tilapia, milkfish, catfish, carp (National Aquaculture Statistic, 2012)

8 Shrimp has been the largest contributor to the Indonesian foreign exchange earnings

Year Shrimp Fish Tuna Crab Others TOTAL

2008 1,165 734 347 214 238 2,699

2009 1,007 723 352 156 225 2,466

2010 1,056 898 383 208 317 2,863

2011 1,309 1,100 498 262 349 3,521

2012 1,313 1,116 598 368 535 3,930

Source: Ministry of Marine Affairs and Fisheries (2012) II. AQUACULTURE POTENCY THE POTENTIAL CONECTIVITY AMONG PRODUCTION, DISTRIBUTION & INDUSTRY

GARA TIMUR

Note :

Production Centre, Industry and Distribution Production Area Source: Directorate General J P2HP, KKP-2012 Regional Investation In Indonesia Indonesia Aquaculture Potency • More than 17,500 islands along the equator (12 months growing season, no snow/typhoon), 5.8 million km2 of sea • Coastline : 95,181 km, Brackishwater pond : 1.2 million ha, Freshwater pond : 627,000 ha, • Indonesia has the largest potential of fisheries production (65 million tons/year) in the world, • Population 245 million (2013) --> 300 million (2025) • Fish Consumption 35.62 kg/cap/yr (2013) -> 38 kg (2014), Provides 65% of total animal protein intake to Indonesian diet (Chicken:8kg, meat:2,5kg, eggs:87pc, milk:11,5 lt/cap) • Global : AFTA (2005), CAFTA (2010), AEC (2015) • Long-term seafood market growth drivers : The rise of middle income class in Asia Pacific Countries POTENCY AND UTILIZATION OF AQUACULTURE RESOURCES IN 2012

UtilizationUtilization 6 % 6% Potency 94%

UTILIZATION 2012 NO AQUACULTURE POTENCY (Ha) Dev. opportunity (Ha) Ha Percent (%) 1. Brackiswater 2.963.717 657.346 22,2 2.306.371 2. Freshwater pond 541.100 131.776 24,4 409.324 3. Lake, River 158.125 1.798 1,1 156.327 4. Paddy-fish 1.536.289 156.193 10,2 1.380.096 5. Seawater 12.545.072 178.435 1,4 12.366.637 AMOUNT 17.744.303 1.125.548 6,3 16.618.755

(Marine and Fisheries Statistic, 2013) Potency of Sustainable Production and Level of Fisheries Resource Utilization in Indonesia

Production Production Area Potency on 2010 Utilisation Level Fisheries Activity Potency (million (Million (%) (million ha) tons/yr) tons/yr)

A. Fishing

1. Marine 580,0 6,5 5,06 77,8 2. Public water 54,0 0,9 0,45 50,0 B. Aquaculture 1. Marine 24,0 42,0 3,39 8,07 2. Brackish water 1,2 10,0 0,99 9,9 3. Fresh water 3,7 5,7 1,02 17,9 TOTAL 672,9 65,0 10,39 15,98

Total potency of aquaculture production 57,7 million tons/yr & production 5,4 million tons (9%) Transport Storage Processing Procuct Storage

Supply chain for fish products is Retail & export Collector long & complicated important to have product standard, certification & traceable Farmers Fisherman Consumtion Fish/shrimp processing industry create employment (1,000 people to process 2,000 ton fish/shrimp), Not including the employment on farm, traders, feed mill, hatchery also the fisherman, PERFORMANCE 2010-2012 & TARGET 2013-2014

Value of Fisheries Export Fish Consumption per Capita

6.50 39.00 5,65 38,00 6.00 38.00

5.50 37.00 4,16 5.00 36.00 35,62

4.50 35.00 3,93 33,89 Kg/kapita 34.00 USD USD Miliar 4.00 3,52 33.00 3.50 32,25 2,86 3.00 32.00

31.00 2.50 30,48

30.00 2.00 2010 2011 2012 2013 * 2014 * 2010 2011 2012 2013 * 2014 * TARGET OF FISH FOR CONSUMPTION & EXPORT

Estimate Target Target INDICATOR 2013 2014 2015 2016 2017 2018 2019 Consumption (Kg/Cap) 35,62 38,00 40,01 42,12 44,35 46,69 49,16 Total population (million people) 248,4 252,1 255,9 259,7 263,6 267,5 271,5 Total fish demand for consumption 8,9 9,6 10,2 10,9 11,7 12,5 13,3 (million ton) Total raw material req’t for industry & 2,1 3,0 3,3 3,7 4,1 4,6 5,1 export (million ton) Value of fisheries 5,65 6,19 6,82 7,55 8,41 9,43 exporf (USD billion) 4,18

Volume of Fisheries Processed product 5,20 5,60 6,00 6,50 7,0 7,50 (million ton) III. AQUACULTURE DEVELOPMENT PERFORMANCE WORLD AQUACULTURE PRODUCTION (FAO, 2014)

China China 53,942,924

Indonesia Indonesia 9,599,765 India 4,213,917 India Vietnam 3,320,100 Vietnam Philipines 2,541,965 Philipines Bangladesh 1,726,066 Bangladesh 60 Korea Rep, 1,506,730 % Korea Rep. Norwegia 1,321,119 11 Norwegia Thailand 1,233,877 % Thailand Chile 1,075,547 Chile Other 9,950,094 Other Total 90,432,105 Sumber: FAO, Fishery & Aquaculture Statistics, 2014 Indonesia’s Aquaculture Production Achievment (2011-2012)

in Tonnes

No Commodities 2011 2012 Precentage

Total 7.928.963 9 451 700 119,20 1 Shrimp 372.577 457 600 122,82 Tiger Shrimp 126.157 143 300 113,59 Vaname 246.420 250 300 101,57 2 Grouper 10.580 10 200 96,41 3 Seaweed 5.170.201 6 201 400 119,95 4 Tilapia 567.078 684 400 120,69 5 Common Carp 332.206 375 200 112,94 6 Milkfish 467.449 522 100 111,69 7 Seabass 5.236 6 100 116,50 8 Pangasius Sp. 229.267 300 300 130,98 9 Clarias Sp. 337.577 407 700 120,77 10 Gourame 64.252 69 500 108,17

Source : Indonesian Directorate General of Aquaculture (2012). Production in Ton Indonesia’s Aquaculture Production During The Last 10 Years

10000 7.929 6.278 4.709 3.855 5000 3.194 2.164 2.683 1.137 1.224 1.469 0 In thousand thousand tonnesIn 2002 2004 2006 2008 2010 TAHUN 2014 16,891,000 mt

2013 30% increase of Target 2013 13,020,800 mt

38% increase 2012 of Target 2012

9,415,700 mt

38% increase of Target 2011 2011 6,847,500 mt

Realisation = 7,901,526 mt ( 115.4%) SEAWEED AQUACULTURE PRODUCTION OF INDONESIA IN 2012

China 14,285,301

Indonesia 6,753,517

Philippines 1,756,629

Korea, Rep. 1,025,110

Thailand 580,948

Korea, Dem Peo 444,300 The seaweed production Japan 440,754 is 25.05% of world seaweed aquaculture Malaysia 379,482 production Viet Nam 364,600

Ecuador 281,100

Others 643,429

▪ Produksi: - Ton 5,000,000 10,000,000 15,000,000 Sumber: FAO (2014) NON-SEAWEED AQUACULTURE PRODUCTION OF INDONESIA IN 2012

China 41,108,306 India 4,209,415 Vietnam 3,085,500 Indonesia 3,067,660 Bangladesh 1,726,066 Norwegia 1,321,119 The contribution is 5% of total world Thailand 1,233,877 aquaculture Chili 1,071,421 Egypt 1,017,738 Myanmar 885,169 Philipina 790,894 Other 7,116,088

▪ Production: - Ton 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000

Source: FAO (2014) SHRIMP AQUACULTURE PRODUCTION OF INDONESIA IN 2011

China 2,079,562 Thailand 623,560 Viet Nam 500,100 Indonesia 373,396 Shrimp aquaculture production India 299,926 contribution of Indonesia is Ecuador 281,100 7.71% of world shrimp aquaculture production Bangladesh 137,174 Mexico 100,320 Brazil 74,415 Myanmar 57,048 Others 316,595

▪ Produksi: Ton - 500,000 1,000,000 1,500,000 2,000,000 2,500,000

FAO (2012) Global Shrimp Aquaculture Production

No, 4 Producer MILKFISH AQUACULTURE PRODUCTION OF INDONESIA IN 2012

Indonesia 482,930

Philippines 386,729

Taiwan 71,598

Singapore 1,664 Milkfish aquaculture 221 production contribution of Tanzania Indonesia is 51.20% of world milkfish aquaculture 116 Others production

▪ Produksi: Ton - 100,000 200,000 300,000 400,000 500,000 600,000

Sumber: FAO (2014) Catfish (Pangasius) AQUACULTURE PRODUCTION OF INDONESIA IN 2012

Viet Nam 1,240,000

Indonesia 347,000

Cambodia 26,800

Malaysia 18,389 Catfish aquaculture production contribution of Myanmar 17,308 Indonesia is 21.04% of world catfish (Pangasius sp) Others 50 aquaculture production

▪ Produksi: Ton - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

Sumber: FAO (2014) Tilapia (Oreochromis sp.) AQUACULTURE PRODUCTION OF INDONESIA IN 2012

China 2,896,957 Indonesia 374,366 Viet Nam 100,000 Bangladesh 64,769 Russian Fed 60,880 Iran 46,370 Tilapia aquaculture production 33,500 Egypt contribution of Indonesia is Myanmar 24,727 2.87% of world tilapia Iraq 20,890 aquaculture production Ukraine 20,000 Others 149,453

▪ Produksi: Ton - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

Sumber: FAO (2014) AQUACULTURE PRODUCTION ACHIEVEMENT (2010-2013)

Juta Ton PRODUCTION IN 2012: *117.81% ❖Aquaculture composition: 13,30 14.00 102,8% •Freshwater: 2.14 million tons, 11.63 •Brackishwater: 1.76 million tons, 12.00 115,8% •Seawater: 5.77 million tons 9.68 10.00 9.42 116,8% 7.93 8.00 6.85 6.28 PRODUCTION IN 2013:

6.00 5.38

4.00 ❖Aquaculture composition: 2.00 •Freshwater: 3.63 million tons, •Brackishwater: 2.32 million tons, - 1 2 3 4 •Seawater: 7.75 million tons TARGET CAPAIAN Tahun

*: data sementara 31 V. ISSUE AND CHALLANGES OF AQUACULTURE (RANKING) 1. Disease Problem Shrimp (Virus: WSSV, MBV, TSV, IMNV) Shrimp (bacteria: Vibrio parahaemolyticus; V, Harvaeyii) Marine Finfish (Gouper, baramundi: VNN, Iridovirus) Freshwater (carp, catfish: Aeromonas sp,) 2. Production cost (cost-effective diets) 3. Disease-free broodstock; Genetic improvement 4. Sustainable seed stock quality and availability 5. Less financial support (access to credit) 6. International market prices and trade barriers Global Issue of Aquaculture Product

1. Food Safety (antibiotic, heavy metal residues) 2. Quality Assurance 3. Traceability 4. Genetically Modified Organism (GMO) 5. Environmental Impacts (Eco-Labeling) 6. Sustainable Aquaculture (CCRF) 7. Social Responsibility

Quality Assurance Control System and Food safety of aquaculture Products IV. DEVELOPMENT STRATEGY OF COMPETITIVE AND SUSTAINABLE AQUACULTURE DEVELOPMENT STRATEGY

COMPETITIVE AND SUSTAINABLE AQUACULTURE DEVELOPMENT

POLICY DIRECTION TARGET

1. IMPROVEMENT OF 1. Production ASPECT AQUACULTURE 2. Increasing the products PRODUCTION AND competitiveness PRODUCT TECHNOLOGY COMPETITIVENESS 1. Food Security and Food Safety 2. FOOD SECURITY AND 2. Adequate nutrition community NUTRITION SOCIAL ECONOMY 3. NATIONAL ECONOMY 1. High employment availability GROWTH 2. Increasing the investation IMPROVEMENT 3. Increasing the farmers income ENVIRONMENT 4. CONSERVATION AND SUSTAINABILITY OF AQUACULTURE 1. Sustainable aquaculture RESOURCES resource 2. Sustainable aquaculture industry

35 ALL POTENTIAL AQUACULTURE LOCATIONS Become Aquaculture Industry Center

“Increasing competitive and ALL AQUACULTURE PRODUCTION CENTERS sustainable TARGET Have sustainable & qualified excellent aquaculture aquaculture commodities with production” innovative technology applications

AQUACULTURE INFRA STRUCTURE DEVELOPMENT Supporting aquaculture supply chain and market demand EXCELLENT COMMODITIES SELECTION OF AQUACULTURE

MAIN COMMODITY • Prooven & Developed Technology already for SHRIMP, MILKFISH, society CATFISH • High export and domistic market demand • High job opportunity • High added value • Low Energy cost SEA WEED Euchema & Gracillaria) OTHER EXCELLENT AQUACULTURE COMMODITY

1. Grouper • Prooven & Developed 2. Seabass Technology already 3. Nile for society 4. Gariepinus sp. • High export and 5. Gurame domistic market 6. Carp demand 7. Eel • High job opportunity 8. Ornamental fish • High added value • Low Energy Cost 3 APPROACHES IN AQUACULTURE DEVELOPMENT

MINAPOLITAN INDUSTRIALIZATION BLUE ECONOMY

(i) Determination of (i) High economic value (i) Apply eco-friendly spatial and zoning technology and (ii) Available and professional management (ii) Infra structure applicable technology availability (ii) Develop mutual (iii) Environment control (iii) High Market demand partnership potency (iii) Develop efficient integrated aquaculture

39 Total Aquaculture Application

• Best Aquaculture Practices • Disease resistance and pathogen free seeds • Biofloc technology system • Vaccine • Dietary enzymes • Recombinant protein • Effective eco-friendly technology

40 A GOOD MOMENT TO INVEST SHRIMP AQUACULTURE IN INDONESIA 3 REASONS EMS Disease Free Antibiotic Residu Free Subsidized Free BUT No Uncontrolable Shrimp Production Do Good Aquaculture Practices ...... FOOD SAFETY REQUIREMENT

• No using nitrofuran since 1995 (Vass et al., 2008) • No using chloramfenicol by FDA (1997) • Minimum Required Performance Limit under Commission Decision (2003/181/EC) • Certifications: CBIB, ACC, GlobalGAP SOME QUALITY STANDARDS/ FOOD SAFETY & CERTIFICATION An Aquaculture Business System Model (Blue Economy) V. CONCLUSION 1. Shrimp, seaweed, milkfish, catfish and tilapia are the 5 main coomodities cultured and developed for food security, sources of nutrition, employement, farmers income and foreign exchanges (devisa). 2. In the development of sustainable aquaculture, Indonesia uses Blue Economy concept: Managing and Sustaining aquaculture resources through environmental stewardship, business sustainability, application of total aquaculture and a diversified business innovation development. 3. Indonesia will practice and develop the responsible aquaculture in any sustainable ways to generate profits continously to food security and national economy.