Luhut Denies Recommending Foreign Investments in Fishery Sector

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan denied reports that he proposed to open the fishery sector to foreign investors. Luhut said that if local fishermen can manage to work on the industry, it is best to keep the fishery sector closed to foreigners.

"If they can't, is there a chance for joint-ventures?" Luhut said at his ministry's building in Jakarta,Tuesday, August 9, 2016.

Luhut said if a joint venture can be established between Indonesian businesses and foreign countries. The foreign parties will be mandated to open a base in Indonesia, and the boats used must be from Indonesia.  

Luhut said his ministry is still conducting studies, and in the next two or three weeks they will make a review on what options they think are the best. According to Luhut, if local fishermen can handle the fishery sector themselves, then foreign involvement would be unnecessary.

When asked if he would propose a joint-venture with foreign parties to the president if local fishermen cannot meet the demand, Luhut said he hadn’t thought of that. "Let's not add things up, shall we," Luhut added. 

If that happens, Luhut said he would talk with Maritime Affairs and Fisheries Minister Susi Pudjiastuti. "If Susi says yes then we will allow it. Of she says no, we will look for other options," Luhut said.  

Luhut asked journalists to write this information accurately. "Report that these are options. You guys shouldn’t cut up news," Luhut said.

Rules on the negative investment list (DNI) in the fisheries sector are governed in Presidential Decree No. 44/2016. Susi had said that she is ready to step down from her post if foreign investors are allowed to enter the fishing industry.

DIKO OKTARA