Sector

Fishery

Indonesia, boasting the title of the world’s largest archipelagic country with a vast sea area of 5.8 million square kilometers, stands as one of the largest producers and suppliers in the global fisheries market. The abundance of sea area provides Indonesia with a wealth of fisheries products, making fisheries a national leading sector in the country.

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Fishery

Indonesia, boasting the title of the world’s largest archipelagic country with a vast sea area of 5.8 million square kilometers, stands as one of the largest producers and suppliers in the global fisheries market. The abundance of sea area provides Indonesia with a wealth of fisheries products, making fisheries a national leading sector in the country.

There are 23 regions where fisheries stand out as a leading sector, supporting local economies and providing food security. These regions encompass Aceh, Bengkulu, Riau, Lampung, South Sumatra, Central Java, Bali, West Nusa Tenggara, East Nusa Tenggara, Central Kalimantan, South Kalimantan and North Kalimantan. Other regions include Central Sulawesi, Southeast Sulawesi, South Sulawesi, West Sulawesi, North Sulawesi, Gorontalo, Maluku, North Maluku, Papua, West Papua, and Bangka Belitung.

In 2022, Indonesia’s fisheries sector contributed a total of Rp505 trillion to the country’s gross domestic product (GDP). Building this strong foundation, the country set an ambitious target of reaching US$7.2 billion in fishery exports by the end of 2023. Previously, total fishery product exports had hovered around US$5 billion to US$6 billion.

Supporting the sector’s contribution to the country’s GDP is its production. Throughout the third quarter of 2023, Indonesia’s fisheries production totaled 24.74 million tons. This figure includes both capture fisheries and aquaculture. In aquaculture, the main commodities are seaweed cultivation and shrimp cultivation, while in capture fisheries, the main commodities are tuna, skipjack tuna, and mackerel tuna.

Furthermore, Indonesia’s fisheries sector is experiencing a surge in investment. By the third quarter of 2023, the sector had attracted a total of Rp9.56 trillion in investment, with significant contributions from a mix of domestic sources at Rp5.32 trillion, foreign investors at Rp1.4 trillion, and credit sources at Rp2.84 trillion. Notably, China is the largest foreign investor, contributing Rp370.74 billion, followed by Malaysia with Rp240.4 billion, and Switzerland with Rp152.89 billion, highlighting the increasing international interest in Indonesia’s fisheries potential.

While Indonesia boasts impressive fisheries production and growing investments in its fisheries sector, it is vital to uphold fisheries regulations. These regulations ensure that this valuable sector thrives alongside healthy marine ecosystems. It is reported that Indonesia is scheduled to enforce a new fisheries policy in 2025, which will see quotas assigned to industrial, local, and non-commercial fishers across six designated fishing zones, covering all 11 fisheries management areas (FMAs) in Indonesia. The new quota system responds to a worrying rise in overexploited FMAs, which have increased to 53 percent from 44 percent in 2017.

Latest News

October 29, 2025

Defense Minister Sjafrie Sjamsoeddin has confirmed that Chinese J-10 fighter jets are set to soar across Indonesia's airspace, ending months of speculation. While this procurement follows Indonesia's recent acquisitions of Rafale jets from France and fighter aircraft from Turkey, the Beijing deal has drawn particular attention for its speed and opaque timing.

Since President Prabowo Subianto took office last October, defense procurement has accelerated dramatically. The government has signed a deal for 42 Rafale aircraft worth an estimated US$8.1 billion and another for 48 Turkish combat planes, valued at around US$9.6 billion. Both agreements were widely covered as symbolic of renewed efforts to modernize the military's air fleet and strengthen bilateral defense ties with strategic allies.

Under the Prabowo administration, the country also looks set to revive its partnership with South Korea in developing KF-21 Boramae, a 4.5-generation fighter jet. The two sides have signed a revised Project Agreement on Joint Development for the country's continued participation in the KF-21 program, just days after Indonesia agreed to purchase KAAN jets from Turkey.

By contrast, the announcement on the procurement of China's J-10, reportedly for 42 aircraft, appeared without warning. Unlike the highly publicized French and Turkish deals, the Chinese agreement caught observers off guard, prompting questions about its strategic rationale and Indonesia's broader foreign policy direction. The obscure process signals a potential swing toward Beijing.

Indonesia's foreign policy underwent a significant shift immediately after the inauguration of Prabowo, who has made over 16 overseas trips and visited 24 countries in the first year of his presidency. His administration has loudly promoted its "free and active" foreign policy, refusing to enter any geopolitical bloc and welcoming any nation interested in striking a deal with Indonesia.

Under this same rationale, Prabowo pushed Indonesia to join BRICS, an intergovernmental organization that aims to counter the Western-dominated geopolitical order. This controversial move immediately raised questions: Is Indonesia moving freely and actively, or is the policy merely personal ambition disguised as national interest?

Known for his realpolitik views and Army background, Prabowo has emphasized strengthening military capacity to anticipate future threats in an uncertain international climate. This is reflected in his administration's defense budget of Rp 245.2 trillion (US$15 billion) this year and a projected Rp 335.2 trillion for 2026.

Prabowo's military-focused agenda, which began during his tenure as defense minister under his predecessor Joko "Jokowi" Widodo, has led him to strike deals with both Western and Eastern countries to purchase equipment to rejuvenate and modernize the Indonesian Military (TNI).

As defense minister, Prabowo largely favored deals with Western countries, signing major procurement contracts with France's Dassault Aviation (Rafale fighter jets and Scorpene submarines), the United States' Boeing (F-15EX fighter jets), Europe's Airbus (A400M transport aircraft), Italy's Fincantieri (FREMM-class frigates) and the United Kingdom's SMP (SRV-F Mk.3 rescue submersibles).

While these deals signaled Prabowo's preference for Western manufacturers, his recent pivot toward non-Western arms makers marks a sharp strategic departure.

Now, 42 Chinese J-10 jets are set to arm the Indonesian Air Force. Prabowo's defense procurement strategy targeting equipment from BRICS countries has piqued the interest of analysts, who view the move as part of Indonesia's shift to the East.

While this theory rings true, the greater concern is the logistical and technical challenges arising from this multisource procurement strategy. Purchasing defense equipment from too many different countries will add layers of complexity for the airmen tasked with operating and maintaining Indonesia's new, varied fleet.

Regardless of Indonesia's new defense engagements with China and Turkey, relations between Jakarta and Washington remain cordial, as evidenced by Prabowo's participation among world leaders at the Gaza Peace Summit in Egypt, which was convened by US President Donald Trump.

Though the two leaders have yet to hold a formal bilateral meeting, they appear to have a personal rapport. A hot mic incident during the Gaza summit captured a controversial exchange: Prabowo was overheard asking the US leader to put him in touch with one of his sons to discuss the advancement of the Trump family's business ventures in Indonesia.

Whatever the rationale behind the request, the incident underscored the friendly dynamic between the two leaders, hinting that Indonesia-US relations remain warm, even as Prabowo fields partners eastward.

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