2014-04-08 07:40:13 - Is Indonesia's aquaculture industry set for potential growth?
Indonesia’s aquaculture industry is ranked 4th globally in terms of production tons. Franklin Crum, Manager, Client Service of Spire Research and Consulting, shared his views on the future outlook for Indonesia’s aquaculture industry on MNC Business Channel – Economic Buzz.
Crum commented that Indonesia’s water conditions have provided a favourable environment for wet aquaculture (otherwise known as fish farming); allowing a wide range of tropical fish species to breed. The aquaculture industry has shown great potential in Indonesia; contributing 1% towards its GDP. Indonesia is one of the leading Asian countries in this industry, alongside China, Thailand, Vietnam, the Philippines, Republic of Korea, Japan and Bangladesh.
The industry had registered a total revenue of USD 7 billion in 2012, seeing compound annual
growth (CAGR) of 25.9% between 2008 and 2012. The figure is expected to grow to USD14.3 billion by 2017.
Crum shared that the Indonesian government has allocated USD108 million to upgrade infrastructure in this industry. The Good Aquaculture Practices (GAP) standard will also help realize policies to further sustain and develop aquaculture, as well as promote sustainable organic fish farming processes.
However, Crum opined that aquaculture can pose a threat to the environment and to public health, if not properly managed. For instance, there may be a risk of transferring diseases from wild fish and fish waste from the ocean bottom to farmed fish. Hence, it is crucial to maintain hygiene in preservation, storage and transport of the fishes. Proper equipment, along with water quality monitoring and the stricter regulations that came into force in the late 1990’s, have played a key role in nurturing the industry in Indonesia.