TEMPO.CO, Jakarta - The government should maintain the policy of keeping commercial fishing on the list of sectors closed to foreign investment. This ban, as laid down in Presidential Regulation No. 44/2016, is important to preserve Indonesia's fisheries. The government takes into consideration the fact that four of the 11 fishing zones in Indonesia have been overfished. Experience tells us that foreign ships are responsible for most of this overfishing.
No blame can be attached to Marine Affairs and Fisheries Minister Susi Pudjiastuti, who supports the continuation of the ban on foreign investment in fishing. She is adamant about preventing foreign investors from looting fish from our waters ever again. But Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan, who wants the ban to be reviewed, makes sense as well. Luhut believes that the considerable potential for fishing, particularly in the Natuna waters, has not been exploited optimally as a result of a shortage of fishing vessels.
But one important issue emerging from the dispute between Minister Susi and Coordinating Minister Luhut Pandjaitan is that the fish-processing industry throughout Indonesia is facing a shortage of raw materials and has been forced to work at a much reduced capacity. As such, in June the government imported 2,000 tons of fish to overcome this deficiency of raw ingredients for the domestic fish processing industry. This fact contravenes Minister Susi's statement that Indonesian waters has abundant fish stock after she ordered the destruction of illegal foreign fishing vessels.
This means sufficiency of supplies for the domestic fish-processing industry must be the benchmark in granting permits for fishing companies. Minister Susi is free to stop issuing permits to foreign investors, yet she must also draw up regulations that make it easier for local vessels to apply for permits. The facts show that it is not easy even for local boats funded by domestic capital to obtain fishing licenses. It is this problem, among others, that is believed to be the reason for the decline in the domestic fish-processing industry.
Minister Susi's caution in granting permits to local vessels is necessary. But this does not mean that all local businesses must face obstacles because of suspicions they may be fronts for foreign investors. Minister Susi simply needs to establish a better oversight mechanism to stop these illegal practices from recurring. She needs to ensure that there are no more cases of vessels flying the Indonesian flag, but whose shares are owned by foreigners and usually in the name of senior Indonesian officials.
Minister Susi must sharpen her department's oversight mechanism so there will be no more Indonesian-flagged vessels catching fish in Indonesian waters but then transferring their catches on the high seas to vessels that end up in neighboring countries like the Philippines and Thailand. This, more than anything else, is what has led the domestic fish processing industry to experience shortages of fish supply. The state also loses out because they are deprived of any tax revenues.
Minister Susi needs all the support she can get in her endeavor to stamp out these illegal practices. However, at the same time, we sincerely hope she will be able to separate this important undertaking from and private business interests. Minister Susi must not waste this opportunity to turn local businesses into the masters"of the commercial fishing industry, replacing foreign concerns that have for too long exploited our maritime resources. This can be done by drawing up regulations that are friendly to local fishermen and businesses. (*)
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