Indonesia Courts Chinese Investment in Fisheries Sector Amid U.S. Trade Tensions
JAKARTA, Indonesia — Indonesia is actively pursuing increased investment adn trade with China in its fisheries sector, signaling a strategic economic pivot amid ongoing trade friction with the United States. The Indonesian Ministry of Maritime Affairs and Fisheries (KKP) recently participated in the China (Zhejiang)-Indonesia Trade and Investment Conference in Jakarta to promote collaboration.
Opening Doors for Investment
Tornanda Syaifullah, Director General of strengthening Competitiveness of Marine and Fisheries Products (PDSPKP) of the Ministry, emphasized Indonesia’s eagerness to attract Chinese investors. “We are opening up space for investors to collaborate in the capture fisheries, cultivation, fisheries product processing, and strengthening sustainable logistics sectors,” Syaifullah said.
The conference, organized by the Zhejiang Provincial Government and the China Council for the Promotion of International Trade (CCPIT Zhejiang), aims to bolster economic ties between the two nations. Key sectors for investment include maritime and fisheries, manufacturing, logistics, and renewable energy.
Syaifullah, representing Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono, highlighted the Indonesian government’s commitment to fostering a favorable investment climate through streamlined licensing, incentives, infrastructure development, and a skilled workforce.
Thriving Trade Relations
Indonesia’s fisheries trade with China is experiencing a positive trajectory. According to the Ministry’s data, in 2024, Indonesian fishery product exports to China reached $1.24 billion, while imports amounted to only $96.7 million, resulting in a substantial trade surplus of $1.15 billion for Indonesia.
The primary Indonesian export commodities to China include squid and octopus (32.9%), seaweed (18.6%),ribbonfish (7.9%), shrimp (7.5%), crab (6.2%), and lobster (3.6%). Conversely, imports from China are mainly composed of frozen Pacific mackerel (scomber japonicus) at 52.2%, frozen squid (especially Todarodes pacificus and Dosidigcus gigas types) at 9.6%, and carrageenan (6.0%).
| Indonesian Fishery Exports to China (2024) | Percentage |
|---|---|
| Squid-Octopus | 32.9% |
| Seaweed | 18.6% |
| Ribbonfish | 7.9% |
| Shrimp | 7.5% |
| Crab | 6.2% |
| Lobster | 3.6% |
Strategic Implications and U.S. Outlook
This intensified engagement with China occurs against a backdrop of complex trade dynamics between the U.S. and Indonesia. While the U.S. remains a significant trading partner for Indonesia, the pursuit of Chinese investment reflects a diversification strategy. Some analysts view this as a hedge against potential disruptions in the U.S.-Indonesia trade relationship,particularly concerning tariffs and market access for Indonesian goods.
The U.S.has expressed concerns about China’s fishing practices globally, particularly regarding illegal, unreported, and unregulated (IUU) fishing. These concerns extend to the potential impact on sustainable fisheries management and fair trade practices. The U.S.Coast Guard has increased its presence in the Indo-pacific region to counter IUU fishing, often linked to Chinese vessels.
It’s crucial to note that some critics argue that increased reliance on Chinese investment could lead to Indonesia becoming overly dependent on a single economic partner, potentially sacrificing long-term economic diversification and autonomy. However, Indonesian officials maintain that they are pursuing a balanced approach, seeking to attract investment from various sources while upholding national interests and sustainable development goals.
Blue economy Initiative
Minister Trenggono previously launched the “blue economy” program,aiming to enhance the competitiveness of Indonesian fishery products through sustainable production systems. This initiative involves strengthening collaboration with multiple stakeholders across the entire fisheries value chain, from upstream to downstream activities. “The collaboration is part of an effort to create a resilient, inclusive and globally competitive national fisheries industry, in line with the target of sustainable blue economic development,” said Syaifullah.
This echoes efforts elsewhere. In the U.S., NOAA (National Oceanic and Atmospheric Administration) promotes sustainable seafood through programs like FishWatch, helping consumers make informed choices and supporting responsible fisheries management.
FAQ: Indonesia’s Fisheries Investment Strategy
- Why is Indonesia seeking increased investment in its fisheries sector?
- Indonesia aims to boost the competitiveness and sustainability of its fisheries industry, create jobs, and increase export revenue through strategic partnerships.
- What are the main areas of investment possibility in Indonesia’s fisheries sector?
- Investment opportunities exist in capture fisheries,aquaculture,fisheries product processing,and the strengthening of sustainable logistics infrastructure.
- How does Indonesia plan to ensure the sustainability of its fisheries resources with increased investment?
- Indonesia is committed to its “blue economy” initiative,prioritizing sustainable production systems,responsible resource management,and collaboration with stakeholders to ensure long-term ecological and economic benefits.
- What are the potential implications for U.S. seafood importers?
- U.S importers should monitor shifts in supply chains and pricing, ensuring compliance with import regulations and sustainability standards. Diversification of supply chains may become necessary.
