Investment and Downstream Ministry aims to downstream marine sector

Investment and Downstream Deputy Minister/Investment Coordinating Board (BKPM) Deputy Head Todotua Pasaribu stated that the Investment and Downstream Ministry has prepared several marine 'downstreaming' programs which are expected to create jobs for 9,500 workers.

He added that BKPM is also targeting the contribution of marine downstreaming to Indonesia's gross domestic product (GDP) to reach US$760 million or about Rp 12.3 trillion (at Rp 16,260 per US$1). The GDP contribution of the marine sector is expected to increase investment by US$807 or about Rp13.1 trillion with the same exchange rate assumption.

"And also an increase in exports of approximately 9.5 million which we will target for 2040," Todotua elaborated while speaking at the discussion forum on Downstreaming the Marine and Fisheries Sector in Jakarta on Feb. 14, 2025.

To achieve the target, the government has created three special economic zones for fisheries and marine affairs in Morotai Islands Regency, Maluku Province; the Likupang region of North Minahasa Regency, North Sulawesi Province; and Gresik Regency, East Java.

"This is a strategy that we will develop in the future to downstream the fisheries sector," he said.

Furthermore, Todotua explained that the three areas will focus on downstreaming shrimp as well as tuna, skipjack tuna, and mackerel tuna. He said that Indonesia aims to no longer expor raw shrimp, but processing it first into frozen shrimp, processed shrimp, chitosan, and glucosamine.

Shrimp chitosan itself is a biopolymer obtained from shrimp waste that is processed through the chitin deacetylation process. Chitosan has many benefits for the body, one of which is absorbing heavy metals from industrial processes. Meanwhile, shrimp glucosamine can be processed into supplements used to repair joint damage.

"Likewise for skipjack tuna and mackerel tuna, the priority products are processed fish, frozen fish, fish meal, and fish oil," he explained.

Todotua hopes that the strategy could hep Indonesia become a international market leader in processed fish products. He noted that the Investment and Downstream Ministry needs support from all relevant stakeholders to achieve the target as stipulated in Investment Minister Regulation No. 1/2022.

"The regulation aims to encourage the participation of regional and national entrepreneurs," he concluded.