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.
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The administration of President Prabowo Subianto has issued Presidential Regulation (Perpres) No. 26/2026, which expands the role of public service agencies (BLU) in energy imports, blurring the traditional boundaries between government agencies, state-owned enterprises (SOEs) and private sector players. While the new regulation appears intended to strengthen Indonesia’s energy security amid growing global uncertainties, it could create overlapping responsibilities, increase operational risks and expose the country to greater geopolitical pressures.
Article 2 of the Perpres states that the regulation’s aim is to maintain good governance in the procurement of crude oil, fuel oil (BBM) and liquefied petroleum gas (LPG), whether sourced domestically or imported. It also seeks to improve the continuity, reliability and resilience of the national energy supply.
Under Article 4, imports of oil and gas products, including gasoline and LPG, may be conducted through agreements between Indonesia and foreign governments, cooperation between the government and foreign energy producers or partnerships between domestic energy companies and overseas suppliers, subject to certain restrictions.
Article 4 further stipulates that imports under bilateral cooperation schemes may be executed either by energy SOEs such as Pertamina or by the Oil and Gas Testing Center (Lemigas) of the Energy and Mineral Resources Ministry. It also authorizes the government to direct Lemigas to import oil and gas products to support strategic energy reserves and operational stockpiles.
During emergencies, Article 5 allows Lemigas and energy SOEs to independently procure oil and gas if domestic supplies are disrupted by geopolitical developments, price surges due to supply fluctuations or domestic reserves fall below established thresholds. The article also permits import contracts to include price differences based on volume, product type, country of origin and delivery schedules.
Meanwhile, Article 9 allows Lemigas, energy SOEs and private energy companies to import oil and gas products for storing in Free Trade and Free Port Zones (KPBPB) such as Batam or at bonded logistics centers (PLB). These facilities provide logistics and storage services while allowing deferred payment of selected duties, taxes and excise.
Granting Lemigas the authority to import oil and gas products marks a significant departure from the center’s traditional role. Historically, Lemigas has focused on research, certification, consulting, field surveys and testing services for the oil and gas industry.
The energy ministry says this expanded authority is intended to facilitate government-to-government (G2G) energy transactions, including potential agreements with Russia that could involve as much as 150 million barrels of crude oil.
Economists have argued that the new regulation risks creating overlapping procurement responsibilities between Pertamina and Lemigas, now designated as a public service agency. Assigning a commercial function outside the center’s core expertise could increase the risk of execution failures, complicate coordination in oil and gas procurement and distract Lemigas from its primary functions of research and testing.
Industry players have also suggested that granting import authority to Lemigas may serve as a way to bypass certain procurement restrictions Pertamina faces. The state-owned energy giant previously issued global bonds in the United States that restrict its involvement in illicit oil transactions, including purchases from countries such as Russia that are subject to sanctions by the US and its allies.
The energy ministry has acknowledged that facilitating such transactions is among the considerations behind the policy.
Meanwhile, National Energy Council (DEN) member Muhammad Kholid said the oil and gas that Lemigas imported could be stored at SOE-owned facilities, including those operated by Pertamina subsidiary PT Pertamina Patra Niaga or private energy companies. However, Kholid encouraged Lemigas to prioritize facilities run by SOEs, arguing that storage costs could be minimized through adjustments to asset use arrangements approved by the Finance Ministry.
Allowing Lemigas to import oil and gas products reflects the government’s concern over potential energy supply disruptions amid the country’s continuing dependence on fossil fuels. However, this policy should have been introduced earlier and tested through Pertamina before actually authorizing an institution with limited experience in commercial procurement.
Moreover, facilitating transactions involving sanctioned producers risks drawing needless scrutiny from Washington and its allies. It may also create a perception of foreign policy inconsistency following the significant concessions in Indonesia recently extended to the US.
