Minister Proposes Budget Allocation for Fishing, Fish Farming Sector Stimulus
Date 28 Mei 2020
In a bid to strengthen fishing and fish farming sectors, Minister of Marine Affairs and Fisheries Edhy Prabowo has proposed budget allocation of the 2020 State Budget for stimulus plan.
“The Ministry has proposed additional budget of Rp1.024 trillion in which Rp413.27 billion will be allocated to provide assistance to the fishermen, Rp406.55 billion for fish farming sector, Rp36.07 billion for processing and marketing, Rp54.1 billion for sea salt farming sector, Rp106.48 billion for marine resources monitoring purpose namely to monitor foreign illegal fishing boats, and Rp8 billion for internal audit monitoring,” Edhy said in a press statement after joining a Limited Meeting on Thursday (28/5).
The Minister went on to say that his side has coordinated with Ministry of Social Affairs and Ministry of Village, Disadvantaged Regions and Transmigration about the distribution of social assistance.
“Fishermen who do not receive staple food package or other social assistance programs will be contacted by Ministry of Social Affairs and Ministry of Village,” he said.
He further said that efficiency and optimization will be carried out to provide fishermen a better access to sea fishing. As for fish farming, the Ministry provides fish seeds and broodstock, as well as facilities and infrastructure.
In addition, the Minister called for procurement of cold storages in various sizes to anticipate stock of fish since the selling is not optimal due to the imposition of Large-scale Social Restrictions (PSBB) in several regions.
The Minister also proposed budget that was cut (for COVID-19 mitigation) will be returned to fund monitoring of Indonesia’s sea territory.
In order to strengthen fishing and fish farming sectors, the Ministry asked for participation of state capital to state-owned fishery firms Perikanan Nusantara (Perinus) and Perindo.
“Thank God, Minister of Finance and Minister of State-owned Enterprises are not against that idea. Minister of Finance only asked for technical proposals to give Rp500 billions of participation of state capital to each firm,” he explained.
The money, he added, will be used to buy fish farming and fishing products, as well as the processing products.
“Hopefully, the budget can contribute to the absorption of fish products during this time,” he said.
On that occasion, the Minister also urged banks member of the Association of State-owned Banks (Himbara) to give loan for shrimp farming sector with the pond as collateral, not the fish farmers’ personal assets.
“We will also utilize budget of Public Service Agency for Marine and Fisheries Capital Management (BLU LPMUKP). Rp1.026 trillion of budget will be used to fund fish marketing because of the potential of fish demand in domestic and foreign markets is high,” he said.
Therefore, marine and fisheries sector has great potential to bring significant amount of foreign exchange and create more new jobs.
The Minister cited an example of the price of shrimp which increased to Rp60,000 per kg from Rp40,000 at the beginning of the pandemic.
The proposed budget, he added, is expected to give stimulus to all activities in this sector so that fisheries and marine sector can survive during the pandemic and will become priority sector in the future.
The Ministry also coordinated with Minister of Transportation on fishing licenses. Because of good communication between the two institutions, the licenses can be obtained in hours not days.
“Based on coordination with Minister of Industry, the price of fish feed, -which has been increased by the manufacturer by Rp1.000 during the pandemic-, has returned to normal price,” he said adding that the increase in price is not fair since the country has provided the manufacturer an ease in tax, permit, and also provided them with stimulus.
He expressed hope the communication will be intensified to stimulate jobs in marine and fishing sectors. In addition to that, the Ministry continues to promote eat more fish campaign to anticipate the impact to COVID-19 to the sector. ( FID/EN )
Translated by : Rany Anjany
Reviewed by: Mia Medyana