opening markets punishes indonesian
fisherfolk
p. raja siregar, walhi/friends of the
earth indonesia
For fisherfolk in Indonesia , a small
catch always means small returns, but a big
catch doesn't always mean increased
incomes. It may be that there are too many
fish being sold in the market and prices
drop. Or that the fish are not sold, and
perish. Or that the fish are discarded at
sea. Trawl boats in the Mollucas and Seram,
for example, currently throw 90% of their
catch back into the ocean in their search
for profitable shrimp and tuna.
encouraging local industry and
minimizing fish waste
By making use of this surplus and low
quality fish, a viable fish processing
industry could reduce these risks and at
the same time increase fisherfolks'
incomes. The Indonesian processing industry
is however struggling to develop in the
face of unhelpful national policies and
international trade regulations.
The most common processed fish product
is fish powder, which is used as feed in
shrimp and fish farms. Promoting the fish
powder industry could be a particularly
useful way of allowing fisherfolk to
benefit from damaged and unwanted fish that
would otherwise go to waste. Currently,
however, Indonesia imports enormous and
increasing quantities of fish powder. In
2002, 61,301 tons of fish powder worth
US$37.6 million were imported (27% more
than in 1998). Fish powder, most of it from
Latin America , constitutes 60% of
Indonesia 's fish imports.
fish and shrimp dumping
Tariff escalation, which means that the
most highly processed products attract the
highest tariffs, discourages the
development of domestic processing
industries in exporting countries. The EU,
for example, imposes escalating tariffs on
Indonesia 's processed fish products. EU
tariffs on processed fish products may
reach 40%, while those on raw materials are
only around 5%.
In addition, Indonesia 's own import
tariffs on fish are very low - between 0%
and 3% - while domestic fish are taxed at
5%. This encourages national businesses and
the processing industry to buy cheap
imported fish, leaving fisherfolk with even
more unsold catch. Low tariffs have made
Indonesia a magnet for dumped products.
Since 2004, for example, Indonesia has
been flooded with shrimp imports from China
and Vietnam that have been rejected by the
United States . Indonesian shrimp farmers
are understandably up in arms about this
dumping of shrimp that have been rejected
elsewhere.
Indonesia should be able to apply
tariffs and other trade restrictions to
fish (especially those small-sized species
caught by fisherfolk) and fish powder
imports, and EU tariff escalation must
stop. These measures would protect
fisherfolk and encourage domestic
processing.
