JRSSEM 2023, Vol. 02, No. 8, 1818 – 1834

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

DOI : 10.59141/jrssem.v2i08.408 https://jrssem.publikasiindonesia.id/index.php/jrssem/index

INDONESIAN FISH POLICY DEVELOPMENT AND

MARKETING STRATEGY IN THE CONTEXT OF UTILIZING

MARKET POTENTIAL

Yohanes Ngamal

Eka Setiawati

STIE Saint Theresa Merauke, Indonesia

e-mail: yohanesngamal@gmail.com, ekasetiawati@gmail.com

*Correspondence: yohanesngamal@gmail.com

Submitted

: February 26

2023,

Revised

: March 13

2023,

Accepted

: March 25

2023

Abstract: The sea is an important part and is a natural resource that drives economic growth. Apart

from that, the sea is also an asset for Indonesia. Currently the Indonesian government is fully

concentrating on maritime development and wishes to become the world's maritime axis. However,

it should be realized that maritime development issues are not as easy as one might think. Various

complicated problems that arise from the internal and external environment are obstacles and

must be resolved first. To solve this problem the government needs to build a maritime

management system, so that the sea is no longer just a name or symbol for Indonesia as a maritime

country but also as one of the economic sectors that present products or services where the results

can encourage people's welfare

Keywords: Market Potential; Competence; Competitive; infrastructure; technology.

Yohanes Ngamal

Eka Setiawati

|1819

INTRODUCTION

In the current era of globalization

where the trading system has penetrated

the walls between countries, it causes

competition between products in an

increasingly tight market. The quality of a

product determines the product that is

produced to get a place in the hearts of

consumers.

Now it is the market that drives the

company's products where the consumer is

in a strong position. For this reason, every

producer is obliged to create superior

products and offer these products to

consumers. If you look at the many brands

on the market, the quality of a product can

provide credibility and become a clear

differentiator for the product. With its

quality and brand mix, it is believed that a

product has strong bargaining power in the

market to entice consumers to buy the

product or service it offers. In this position,

the quality of a product is very dependent

on the quality of human beings,

infrastructure, capital raw materials, and

marketing strategies.

Indonesia has very potential marine

products, as a country consisting of 75

percent sea and 25 percent land should be

the biggest contributor to the labour

sector. However, the fisheries sub-sector

only contributes to the agricultural sector

by approximately 4%.

Based on the processing results of the

National Socio-Economic Survey (Central

Bureau of Statistics, 2022), in 2021 the

expenditure allocation for fish, shrimp,

squid or shellfish commodities will average

IDR 51,514.00 per capita per month.

Households with a monthly expenditure

group of less than IDR 150,000.00 consume

this commodity group in the amount of IDR

12,765.00 per capita per month (15.48

percent of total expenditure on food).

Meanwhile, for households with a higher

expenditure group (Rp. 150,000.00 or more

per capita per month), the expenditure

allocation for the commodity group of fish,

shrimp, squid, or shellfish per capita per

month ranges from 6 to around 8 percent.

In terms of the trade balance, during

the first quarter of 2022, the production of

the marine and fisheries sector brought

satisfactory results. The trade balance in the

fisheries sector was a surplus of USD 1.39

billion. An increase of 21.78 percent when

compared to the same period the previous

year (Ministry of Maritime Affairs and

Fisheries, 2022). On the other hand, food

security can be seen globally through the

Global Food Security Index. This index

measures food security from the

dimensions of affordability, availability,

quality, and safety, as well as the

sustainability of natural resources.

Indonesia's position in the 2021 Global

Food Security Index has dropped from

62nd to 69th out of 113 countries. In 2020,

Indonesia's Index score was 61.4 and then

fell 2.2 points to 59.2 in the following year

(2021). In the Affordability Dimension and

Availability Dimension, Indonesia's score is

quite good, namely 74.9 and 63.7. On the

other hand, the score for the Quality and

Safety Dimensions was only 48.5 points.

Likewise, the score for the Natural

Resources Sustainability Dimension is 33

points. Indonesia's Global Food Security

Index is relatively lower among

neighboring countries such as Singapore,

Malaysia, the Philippines, and Thailand.

1820 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

Fishery production in Indonesia does

not only come from capture fisheries but

also from aquaculture production. Capture

fisheries can be divided into two groups,

namely marine fisheries and inland open

water fisheries. Meanwhile, aquaculture is

divided into quite different details. There

are marine culture, seaweed culture,

floating net culture, other marine culture,

brackishwater ponds, freshwater ponds,

cages, fresh floating nets (floating cage

net), bargain fishing nets (pen culture), and

mina padi (rice fish). Aquaculture continues

to be developed, in line with efforts to

optimally and sustainably use capture

fisheries at sea. There is a direct

transformation in the 2020-2024

aquaculture development policies and

programs. This transformation is in the

form of a paradigm shift in the

development of aquaculture from

increasing production to being oriented

toward "Sustainable Aquaculture Fishery

Resource Management".

LITERATURE REVIEW

Definition of Strategy and Strategic

Management

The notion of strategy comes from

the Greek, derived from the word strategies

which means general. The general is

interpreted as a leader who directs the

troops to be able to win the battle.

Strategic Management has various

meanings, including William F Glueck and

Lawrence Jauch defines it as a unified,

broad, and integrated plan that links the

advantages of the company's strategy with

environmental challenges and is designed

to ensure that the main goals of the

company can be achieved through proper

implementation by the organization

(Saladin, 2003).

Meanwhile, Gregory G Dees and Alex

Miller define strategic management as a

process of combining three activities,

namely strategy analysis, strategy

formulation, and strategy implementation.

By looking at the two definitions above,

strategic management is interpreted as an

activity to choose the best method used by

the company in dealing with various

environmental threats to achieve company

goals.

Definition of Marketing

Marketing is a management activity

to meet the needs of individuals or groups

to obtain the goods or services they need,

through the process of offering and

exchanging products that have value to

other parties. Meanwhile, according to

experts the definition of marketing is

1. Kotler

Marketing is a social process of

individuals and groups getting what they

need and want through creating, offering,

and exchanging products of value with

others (Kotler et al., 2016).

2. Boyd, Walker, Larreche (2000: 4)

Marketing is a social process that

involves important activities that enable

individuals and companies to obtain what

they need and want through exchanges

with other parties to develop exchange

relationships.

Meanwhile, marketing management

is an attempt to plan, organize, direct,

coordinate, and supervise or control

marketing activities to achieve the goals of

an organization so that the process of

delivering goods and services is achieved

efficiently and effectively. Marketing

Yohanes Ngamal

Eka Setiawati

|1821

management has the function of analyzing

the marketing environment, obtaining

opportunities to seize the market, and

finding out how big the threats that must

be faced.

Figure 1. Marketing Management Function

(Kotler et al., 2016)

Marketing Mix According to Kotler

A marketing mix is a set of marketing

tools that the company uses to achieve its

marketing objectives in the target market.

From these definitions, we can conclude

that the elements of the marketing mix are

tools that can be controlled by the

company to meet target market. Therefore,

companies must try to form and combine

these elements to achieve the desired

goals.

Elements in the Marketing Mix

Mc. Carthy classifies the marketing mix

tools into four groups called the four P's in

marketing: Price, Place, Promotion, and

Product.

The Five Forces Model of Industry

Competition by Michael Porter

(Argyres & McGahan, 2002), a

professor of strategic management from

Harvard University stated, five forces affect

competition in the industry, namely:

• Threats from new entrants (threat of new

entrants). Often newcomers have large

amounts of resources and the ability to

strong women to gain market share.

• Threat of substitute products (threat of

substitute products). Threat Price offered.

the substitute product is

cheaper/inferior, and the quality and

performance capability of the substitute

product exceeds the previous product.

• Bargaining power of suppliers (bargaining

power of suppliers). Suppliers are serious

threat to companies, if, manufacturers open

marketing units.

• Bargaining power of buyers, where buyers

prefer to buy products at the lowest

possible price.

• Competitive rivalry among industry

members (rivalry among competitive

firms), where companies actively compete

with one another for market share achieve

strategic competitiveness and high profits.

Definition of Coastal Areas

Indonesia is a country in the world

that has a very wide sea area, covering it

(Supriharyono, 2007). The continental shelf

control all the natural wealth found in the

sea up to a depth of 200 meters, sea

boundaries as far as 12 miles, and the

exclusive economic zone sea (EEZ) as far as

200 miles from the coastline. Meanwhile,

the coastal area is defined as the meeting

area between land and sea, covering both

land and water, having characteristics of

water seeping from the sea. The

environment of the coastal area has rivers

that empty into the sea. Changes like the

river that may occur due to human

activities, both those occurring in the

upstream and downstream areas, will affect

the soul of the coastal area concerned.

If viewed from its function, coastal

ecosystems have 4 main functions for

1822 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

human life, namely: (a) as a provider of life

support services, (b) as a provider of

comfort (aesthetic) services, (c) as a

provider of natural resources, and (d) as an

absorber or receiver of waste. As a

supporter of the existence of human life,

coastal areas provide life-supporting

services such as fresh air, clean water, and

also space for various human activities. As

a provider of convenience services, coastal

areas provide various ecosystems and all.

As a provider of natural resources, coastal

areas are ecosystems that are very rich in

natural resources, both recoverable and

not, which are essentially required for the

fulfillment of human life. Likewise, as waste

recipients, almost all waste produced by

humans on land accumulates in coastal

areas (Ortolano, 1984)

MATERIALS AND METHODS

Technical Analysis

To analyze the results of this study the

authors used a SWOT analysis, namely

(Strengths, Weaknesses, Opportunities, and

Threats). SWOT analysis is a method of

developing organizational strategy. If

translated into Indonesian, Strengths (S),

Weaknesses (W), Opportunities (O), and

Threats (T) are strengths, weaknesses,

opportunities, and threats or constraints.

Swot analysis systematically could identify

external factors (O and T) and factors within

the company (S and W).

According to Pearce and Robinson, a

SWOT analysis is needed to analyze the

internal resources and the external

situation of the company. A good match

will maximize the company's strengths and

opportunities and minimize its weaknesses

and threats, aiming to succeed in the

company's strategic goals (Pearce, 2008)

Meanwhile, (Thompson. John L.,

2008) interprets SWOT analysis as a very

powerful tool to enlarge capabilities and

find out inefficiencies in company

resources, market opportunities and

external threats for a better future.

Potential in carrying out the planned

business. In addition to internal resources,

the external factors that will be faced,

namely, the existing opportunities or

opportunities need attention, whether

there will be threats or obstacles that are

expected to arise and affect the business

being carried out.

After collecting the various external and

internal factors, the following steps are to

consolidate the strategy namely:

Strength-Opportunity Strategy (S and O)

The combination of S and O

capitalizes on the strengths of the

opportunities that have been identified. For

example, if a company has strengths in the

field of technology, then these strengths

can be used to support product quality so

that the results can reach the target market

segment, where the segment has been

identified in the opportunity analysis.

Weakness-Opportunity Strategy (W and O)

The company has weaknesses in

certain areas but on the other hand, the

company has opportunities to be exploited.

For this reason, companies or organizations

need to make certain strategies to

strengthen these weaknesses to take

advantage of opportunities. For example, a

company has weaknesses in technology or

infrastructure, so it needs to overcome

these weaknesses to take advantage of

Yohanes Ngamal

Eka Setiawati

|1823

opportunities.

Weakness-Opportunity Strategy (W and O)

The company has weaknesses in

certain areas but on the other hand, the

company has opportunities to be exploited.

For this reason, companies or organizations

need to make certain strategies to

strengthen these weaknesses so that they

can take advantage of other people. For

example, a company has weaknesses in

technology or infrastructure, so it needs to

overcome these weaknesses to take

advantage of opportunities.

Strength-Threat Strategy (S or T)

This strategy is primarily aimed at

overcoming threats by leveraging the

strengths of the company. For example, the

threat of a price war.

Weakness-Threat Strategy (W and T)

If an organization faces threats and

when the organization has internal

weaknesses, the strategy used to overcome

these problems is through using resources

or diverting the business to other

businesses that have better business

opportunities. Many strategies we can use,

namely, cooperate with stronger

companies, or make breakthroughs to find

out the situation to be faced with the right

strategy.

RESULTS AND DISCUSSION

ENVIRONMENTAL IDENTIFICATION

1. Internal Environment

Indonesia is the largest archipelagic

country in the world with approximately

17,508 islands and a coastline of around

81,791 km. The length of these shallow

waters allows for a high diversity of species

of organisms that inhabit them. The total

area of Indonesia is 7.9 million km²

consisting of 1.8 million km² of area.

land and 3.2 million km² of territorial

sea area and 2.9 million km² of sea waters

of the Exclusive Economic Zone (EEZ).

As an island nation, Indonesia has the

advantage of marine commodities with

biodiversity, both in the land area of the

seafront and in the water and sea in the

coastal areas. The Indonesian Ocean

contains various types of tuna, various

types of tuna, various types of snapper, and

schoolmaster Indian Threadfish (Alectis

indicus) Indonesian terms: Kuwe Rambe,

Lowang, Jebus The characteristics of Kuwe

Rambe, silver in color, Bornito Atlantic,

Mackerel, Tenggiri, Shrimp, Crab, Squid Etc

This extraordinary diversity includes

estuaries, coastal or mangrove forests,

seagrass beds, and coral reefs which are the

main support for the life and breeding of

fish. Primary productivity in coastal waters

can reach more than 10,000 gr C/m2/year.

This value is very high or much higher

compared to the productivity of waters in

the shallow sea, which is around 100 gr

C/m2/year, or waters in the deep sea, which

is only around 50 gr C/m2/year (Mangalla,

2021).

The coastal area is included in the

ecotone zone because it is an area of

interaction between two different

ecosystems, namely land and sea

ecosystems. The biotic and abiotic

components in these two ecosystems form

a coastal ecotone zone that interacts and

influence each other to form the unique

characteristics of the coastal area. The rapid

modification of the coastal environment,

and loss and damage to the biodiversity of

coastal ecosystems including mangroves,

lagoons, swamps, and coral reefs is a

1824 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

matter that deserves serious attention

(Haryana, 2002).

Apart from the sea, the freshwater

area also contains various types of fish such

as Gurame Fish, which are the most popular

freshwater fish species for consumption.

Arowana, botia, and betta fish are types of

freshwater ornamental fish from Indonesia

that are favorites abroad. Arowana fish and

botia are two types of fish native to

Indonesia. There are three types of

Arowana fish, namely: (1) Arowana jardini

from Papua, (2) Arowana super-red and

green from Kalimantan, and (3) Arowana

golden-red from Sumatra, Riau, Jambi, and

Kalimantan. The largest ornamental fish

export development centers in Indonesia

are in West Java and Jabodetabek (Jakarta,

Bogor, Depok, Tangerang, Bekasi). Apart

from that, sub-Raisers have also been built

in Blitar, East Java, and Yogyakarta for the

development and increase of ornamental

fish production.

On the other hand, Indonesia still has

weaknesses, especially the results of

catching and managing marine products

which are still dominated by traditional

fishermen and minimal technology. In

addition, the number of ships and other

supporting infrastructure is still very

limited. This causes delays in the

distribution of marine products from one

area to another, reducing the freshness of

seafood commodities, both fish and other

marine products.

In addition, the weakness currently

faced by the government is the damage to

coral reefs caused by mining activities in

several areas such as the fringing reefs in

Buyat-Ratototok Regency, North Sulawesi,

caused by the disposal of undersea tailings

from small-scale gold mining that uses

mercury incorporation. Damage to coral

reefs also occurred in the waters of Bangka

Island due to the incessant sea mining.

Coral reefs are a breeding ground for

marine biota so their presence is very

beneficial for fishermen. It may take up to

50 years to repair and wait for coral reefs to

grow back.

In July 2013, the environmental

organization Greenpeace highlighted the

process of disposing of tailings by Freeport

McMoran in Timika, West Papua, which

amounts to 230,000 tons of tailings per day

into the Otomina and Aikwa Rivers, then

flowing into the Arafura Sea. If added up,

the tailings disposed of by the company

approximately amounted to more than

three billion tonnes of tailings. With this

amount, Greenpeace estimates that

Indonesia's very rich marine ecosystem is

under threat of extraordinary damage.

In East Java 80 professional divers

from the East Java, All Indonesian Diving

Sports Association (POSSI) carried out their

action in the waters of the White Sand

Beach of Situbondo, East Java, Saturday

(12/11/2022). They carry out

transplantation and adoption of damaged

coral reefs in the coastal area. It was

recorded that there were 7,700 coral reefs

adopted in this activity.

2. External Environment Analysis

In addition to the internal

environment above, external factors are

also factors that can affect the quality and

quantity of marine fishery products. The

external factors are:

a). Legal Aspects

a. Understanding of Minister of Agriculture

No. 392/Kpts/ IK.120/4/1999 concerning

Yohanes Ngamal

Eka Setiawati

|1825

Fishing Routes is still not uniform

b. There are conflicts over the use of water

space and physical clashes between

sedentary and active-passive fishing

gear

c. Illegal unreported and unregulated

fishing is rife d The licensing system is

bureaucratic and inefficient and tends to

make it difficult for fishermen to various

charges.

e Weak law enforcement. Weak law

enforcement, especially the ability and

number of law enforcement officers,

operational costs, and operational

facilities. To carry out law enforcement,

thousands of Navy officers who can

carry out investigative and investigative

duties are needed. As a result, many

cases of violations still cannot be

handled.

f. The deployment of law enforcers in the

outer boundary areas is still limited,

especially in the eastern region of

Indonesia which has a lot of potential

marine superior commodities.

g Government Protection through Law

No.5/1983, provides opportunities for

national and foreign private sectors to

participate in working on the wealth of

the Sea. With the law, it is hoped that fish

production will increase.

b). Aspects related to marine resources

1. Infrastructure Aspect

The number of supporting

infrastructures such as cold storage,

post-harvest, and transport ships, is still

very limited.

2. Cultural Aspect

Lack of public understanding of the

benefits derived from the marine

business. This is due to the habits of the

people who for hundreds of years

worked and earned income from

agriculture.

c). Aspects of Human Resources

1. Aquaculture cultivation is not optimal

due to inefficient management and

utilization of aquaculture land due to the

ability to use technology

2. The quality of human resources (HR) is

low

d). Capital Limitation Aspect

The capital constraints faced by

fishermen in the country are quite

complicated problems that must be

faced by this country, especially

regarding capital which is not yet

conducive to investment in the fishing

business. The constraints are as follows.

a. There is no bank trust in fishermen's

small businesses.

b. Administrative requirements /

procedures for submitting complex and

bureaucratic financing proposals, and

uneven information about banking

services.

c. While the last obstacle is the limited

range of services from bank financial

institutions to meeting the capital needs

of small-scale fishermen.

e). Policy Aspects

a. government that prohibits foreign

vessels from fishing in Indonesian waters

has encouraged an increase in the

production of fishing boats. For

example, there has been an increase in

ship production in Indramayu

b. In addition to the policies

implemented by the Minister.

f). Policy Aspects

Aspects of government policy that

changed in the era of the Minister of

1826 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

Sushi which prohibited foreign vessels

from fishing in Indonesian waters led to

an increase in the production of fishing

boats. For example, there has been an

increase in ship production in Indramayu

In addition to the policies implemented

by the Minister

Sea sinking fishing vessels

originating from other countries can

encourage an increase in fish exports.

Then in the next Ministerial era, the

opportunity was applied for foreign

ships to be allowed to operate through

permits to use foreign ships.

g). Marketing Aspect

a Product

1. Dried fish has good prospects in

international markets. Types of

dried salted fish such as cork,

Kendra, seat, and replacing are

quite in demand.

2. Shrimps are very popular with

foreign and domestic consumers

because they taste delicious and

contain very high nutrition (90%

protein in shrimp meat)

3. Fish

Cumulatively for the period January -

June 2021, the export value of fishery

products reached USD 2.6 billion, up

7.3% compared to the same period in

2020 with a trade balance surplus of

USD 2.3 billion, up 6.4% compared to

the same period the previous year.

Meanwhile, until the end of this year,

the export value of fishery products is

targeted at USD 6.05 billion. So that

this June, 43 percent of this year's

target has been achieved," explained

Machmud. Machmud said that the

export value of fishery products in

June 2021 reached USD 464.2 million,

an increase of 24.3% compared to

May 2021. This figure also increased

by 17.7%. compared to the same

period the previous year.

"This shows that the marine and

fisheries sector can become an

economic lever as well as an

opportunity during a pandemic," he

continued.

b. Price

Price list for 1 kg tuna for 2022

Types of Tuna Price of Tuna 1 Kg, Price

of Fresh Tuna 1 kg. IDR 85,000,

Yellowfin tuna price 1 kg. IDR

110,000, Bluefin tuna price 1 kg. IDR

95,000, tuna fish fillet price 100gr. IDR

29,900, Price of Tuna Steak 100gr. IDR

12,900, tuna fish can price 170gr. IDR

17,000.

Types of Fish Fillets and Latest Weight

Fish Fillet Dory 1 Pack IDR 22,500,

Atlantic Salmon Fillet 100 Gram IDR

38,000, Norwegian Salmon Fillet 100

Gram IDR 27,500, Whole Salmon

Fillet 1.5 Kg IDR 325,000, Smoked

Salmon Fillet 1.5 Kg IDR 540,000,

Salmon Fillet Send 100 Gram IDR

52,000, Stingray Fillet 800 Gram IDR

59,000, Japanese Pomfret Fillet

(Marucoban) 1.5 Kg IDR 150,000,

Pocket Tuna Fillet 600 Gram IDR

210,000, Super Quality Tuna Fillet 100

Gram IDR 7,995, Tuna Fillet Parcel 1

Kg IDR 80,000, Tilapia Fillet 400 Gram

IDR 110,000, Tawasang Fillet Fish 1 Kg

IDR 84,000, Cucut Fish Fillet 1 Kg IDR

42,000, Baramudi Fish Fillet 1 Kg IDR

162,000, Gindara Fish Fillet Skin Out

1.5 Kg IDR 98,000, Fish Fillet Gindara

Skin Less 1.5 Kg IDR 110,000

Yohanes Ngamal

Eka Setiawati

|1827

You can see the latest vannamei shrimp

prices in the following table:

Vaname Shrimp Size Price Range

Vaname Shrimp Size 20 IDR 110,000 – IDR

120,000 per kg, Vaname Shrimp Size 30 IDR

50,000 – IDR 57,500 per kg, Vaname Shrimp

Size 40 IDR 80,000 – IDR 90,000 per kg,

Vaname Shrimp Size 50 IDR 70,000 – IDR

80,000 per kg Vaname Shrimp Size 60 IDR

75,000 – IDR 80,000 per kg, Vaname Shrimp

Size 70 IDR 65,000 – IDR 75,000 per kg

Table.1. Export Volume and Value of Fishery Products

by Main Commodities Quarter I 2021 – Quarter I 2022

Komoditas Utama

Volume (Ton)*

Nilai (1.000 USD)

Pertumbuhan (%)

2021

2022

2021

2022

Volume

Nilai

Udang

62.051

66.352

526.788

621.924

6,93

18,06

Tuna-Tongkol-

Cakalang

42.263

39.444

169.047

189.528

-6,67

12,12

Cumi-Sotong-Gurita

34.635

35.921

127.682

154.535

3,71

21,03

Rumput Laut

48.058

49.272

64.259

114.257

2,53

77,81

Rajungan-Kepiting

7.331

8.347

103.311

172.564

13,85

67,03

Komoditas Lainnya

93.280

77.354

267.068

277.425

-17,07

3,88

Total

287.618

276.689

1.258.155

1.530.233

-3,80

21,63

Source: DJPSDKP Data Processing Results (2022);

*) The volume has not been equated with the volume of fresh raw materials.

The performance of the export

value of Indonesian fishery products

during the first quarter of 2022 grew

positively compared to the same quarter

in 2021, which was 21.63 percent. In the

first quarter of 2021, the export value of

Indonesian fishery products was USD

1,258 million, increasing to USD 1,530

million in the first quarter of 2022. The

main commodities that dominantly

contributed the highest export value

growth during this period included

seaweed (77.81 percent) and crab-crabs

(67.03 percent).

c. Promotion

The average company engaged in the

fieldIndonesian exports carry out

promotional activities using sales

promotions, namely, participating in

exhibitions held by institutions such as the

OFI (Ornamental Fish International)

Interzoo in Nuremberg, Germany and

Singapore. In addition, promotions are

carried out through internet media.

d. Place/distribution

The destination countries for Indonesia's exports include:

Table 2. Export Volume and Value of Indonesian Fishery Products by Country of

Destination Quarter I 2021 - Quarter I 2022

Negara

Volume (Ton)*

Nilai (1.000 USD)

Pertumbu

han

(Persen)

1828 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

Tujuan

2021

2022

Volum

Nilai

China

92.638

81.481

29%

171.063

214.387

14%

-12,04

25,33

Amerika Serikat

64.396

71.037

26%

561.135

727.266

48%

10,31

29,61

ASEAN

52.749

48.269

17%

135.517

152.767

10%

-8,49

12,73

Jepang

22.083

22.237

137.741

151.623

10%

0,70

10,08

Uni Eropa

11.690

12.211

61.696

78.174

4,46

26,71

Lainnya

44.063

41.455

15%

191.005

206.015

13%

-5,92

7,86

Total

287.618

276.689

1.258.15

1.530.23

-3,80

21,63

Source: DJPSDKP Data Processing Results (2022);

*) The volume has not been equated with the volume of fresh raw materials.

In terms of export destination

countries, China and the United States still

dominate the export destination market for

Indonesian fishery products both in terms

of volume and value. In terms of export

volume, the contribution of the two

countries is 29 percent (China) and 26

percent (United States) respectively, while

in terms of export value, it is 48 percent

(United States) and 14 percent (China) in

quarter I-2022.

Indonesia's fishery products trade

balance recorded a surplus followed by

positive growth in the first quarter of 2022

compared to the same quarter in 2021. In

the first quarter Of 2022, Indonesia's fishery

products balance is USD 1,530.3 million, an

increase of 21.78 percent compared to the

first quarter of 2021 of USD 1,141.7 million.

3. Identification of the Competitive

Environment

Competitor identification is an

important part of achieving the success of

an organization. By being able to analyze

its competitors, the company can improve

performance and implement strategies to

obtain a profitable and strong position to

stem competition in the industry. Michael

Porter (1980, p.49) states that there are five

sources of competitive strength that

companies must anticipate and

understand, to develop competitive

strategies to be able to win the

competition. The competitive environment

in fish companies is as follows:

1. Threat of new entrants

The threat of Substitute Products ((threat

Yohanes Ngamal

Eka Setiawati

|1829

of substitute products)

▪ The threat from the emergence of

management companies

He fishes and catches fish in fish-

exporting countries. New entrants can

harm existing firms. If they have large

capital they can produce large

production capacity, so they can reduce

production costs and lower selling

prices.

▪ Producing substitute products and

prices offered cheaper with good

quality

Both of these conditions will have an

impact on declining sales and profits for

Indonesian fish exporting companies

2. The bargaining power of suppliers.

Suppliers are a force in the industry

which is a serious threat to Indonesian fish

exporting companies in the international

market if these companies increase their

business ventures and act as fish

producers.

3. The bargaining power of buyers.

Buyers tend to demand higher

quality, better service, and lower prices.

Most of the production In- Indonesia still

uses traditional equipment which can lead

to low production quality and high prices.

These conditions can cause local and

international consumers to turn away

from fish produced in Indonesia.

4. Intercompany Competition in the

Industry Indonesia is in tight competition

with four other countries that are

exporters of tuna to Japan, including Iran,

Sri Lanka, and the Maldives. Meanwhile,

the competitor for tuna exports to the

European Union in Mauritius

SWOT ANALYSIS

To analyze the results of this study the

authors used a SWOT analysis, namely

(Strengths, Weaknesses, Opportunities, and

Threats). SWOT analysis is a method for

compiling organizational strategy that

includes internal Strength (S), Weakness

(W) analysis, external Opportunities (O),

and Threats (T) analysis, namely strengths,

weaknesses, opportunities, and threats or

constraints.

a. Strength

The advantages possessed by

Indonesia are:

1. The length of the shallow waters allows

for a high diversity of the types of

organisms that inhabit it.

2. The total area of Indonesia is 7.9 million

km² consisting of 1.8 million km² of land

area and 3,2 million km² of territorial sea

area and 2.9 million km² of waters of the

Exclusive Economic Zone (EEZ).

3. Primary productivity in coastal waters

can reach more than 10,000 gr

C/m2/year.

4. Productivity of waters in the shallow sea,

which is around 100 gr C/m2/year, or

waters in the deep sea, which is only

around 50 gr C/m2/year.

5. The Indonesian Ocean contains various

types of tuna, various types of tuna,

various types of snapper, Indian

Threadfish (Alectis indicus) Bornito

Atlantic, Mackerel, Mackerel, Shrimp,

Crab, squid, etc.

6. In addition to the sea, the freshwater area

also contains various types of fish such

as carp, goldfish, arowana, botia, and

betta fish. Arowana fish and botia, are

two types of fish native to Indonesia.

b. Weaknesses (W)

1830 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

While the weaknesses are:

1. There is no bank trust in small business

fishermen.

2. Administrative requirements/procedures

for submitting complex and bureaucratic

financing proposals, and uneven

information about banking services.

3. Limited range of services from bank

financial institutions to meet the capital

needs of small-scale fishermen.

4. Licensing is bureaucratic and inefficient

and tends to make it difficult for

fishermen with various levies.

5. Lack of number and capacity of law

enforcement.

The number of law enforcement is a

serious problem in law enforcement at

sea, this occurs due to the lack of

operational costs, as well as operational

facilities.

6. Capture and management of marine

products Catching and management still

use traditional methods with minimal

technology.

7. In addition, the number of ships and

other supporting infrastructure is still

very limited.

8. Damage to coral reefs caused by

mining activities

9. The public lacks an understanding of

the benefits derived from the marine

business. This is due to the culture of

the people who for hundreds of years

worked and earned income from

agriculture

c. Opportunities (O)

As for the odds

a. Government Protection through Law

No.5/1983, provides opportunities

for national and foreign private

sectors to participate in working on

wealth in the marine area. Which can

encourage increased exports and

employment

b. Government policy that prohibits

foreign vessels from fishing in

Indonesian waters encourages

increased production and sales of

fishing vessels. For example, there

has been an increase in ship

production in Indramayu

c. Dried fish also has good prospects in

the international market. Types of

dried salted fish such as cork, Kendra,

seat, and replacing are of great

interest. Indonesian dry processed

fish are subtropical fish such as

salmon and cod which are preferred

by consumers in Europe.

d. Shrimp is very popular with foreign

and domestic consumers because it

tastes good and contains very high

nutrition (90% protein in shrimp

meat).

e. As an added value, the waste

produced can be utilized for various

industries (pharmaceuticals,

cosmetics, food, agriculture, textiles).

In the fisheries sector, this industry

includes the marine biotechnology

industry. One of the opportunities for

its utilization is chitin and chitosan

products which are used in various

industrial fields

f. Ornamental Fish

The Ministry of Maritime Affairs and

Fisheries (KKP) stated that Indonesia

is currently ranked 3rd in the world as

an ornamental fish exporter. With this

ranking, the value of the ornamental

fish market share reaches 7.5 percent.

"Ornamental fish production is

Yohanes Ngamal

Eka Setiawati

|1831

increasing every year. In 2011 the

export target was 700 million heads

but the realization was 945.3 million

heads. In 2012 the target of 850

million, with a production of 1.3

billion head. In 2013 the target is 1.1

billion head.

g. The price of tuna in the international

market is quite high. Tuna is sold up

to IDR 14 thousand/kg up to IDR 50

thousand/kg.

h. For catfish if it is processed into fillets

(fish meat without bones) it has a

high selling price and is in great

demand by global consumers. In the

global market, the price of fresh

catfish per kilogram is USD 1. The

price of a catfish fillet per kilogram is

USD 3.4.

i . The price of platinum Arowana fish, for

example, can reach IDR 500

million/head.

As for the countries importing

Indonesian fish products: Japan,

Hong Kong, Rep of Korea, Taiwan,

Rep of China, Thailand, Singapore,

Philippines, Malaysia, Saudi Arabia,

Jordan, Egypt, Australia, USA,

Canada, United Kingdom,

Netherlands, France, RF. Germany,

Belgium & Luxemburg, Sweden,

Denmark, Ireland, Italy, Spain, Greece,

Bulgaria, Poland, Slovenia, Russia

Federation/USSR, and other

countries.

d. Threats:

1. The regulations regarding the

utilization of water space between

passive and active fishing gear are

unclear. As a result, there is a physical

collision between passive sedentary

and active fishing gear

2. Understanding of Minister of

Agriculture No. 392/Kpts/

IK.120/4/1999 concerning the letters

of Fishing Routes are still not uniform

3. The number of supporting

infrastructure for cold storage, post-

harvest, and transportation is still

very limited

4. Lack of public understanding of the

benefits derived from the marine

business. This is due to the culture of

the people who for hundreds of years

worked and earned income from

agriculture.

5. Imbalance in the need for capture

fisheries stocks between regions and

between species

6. Illegal unreported and unregulated

fishing is rife

7. Aquaculture cultivation is not optimal

due to inefficient management and

utilization of aquaculture land and

inadequate hatchery and feed

facilities and infrastructure

8. The quality of human resources (HR) is

low

9. Weak market control (market

intelligence), and there are tariff and

non-tariff barriers for Indonesian

fishery products as a result of

environmental and health issues in

Indonesia

10. Lack of mass promotional activities

regarding Indonesian fish production

in the international market

11. Suppliers are a force in the industry

that poses a serious threat to

Indonesian fish exporting

companies in the international

market if these companies increase

1832 | Indonesian Fish Policy Development and Marketing Strategy In The Context of Utilizing

Market Potential

their business ventures and act as

producers.

12. Indonesia is in tight competition with

other countries that compete in the

tuna export market. Competitor

countries for Indonesian tuna exports

to Japan include Iran, Sri Lanka, and

the Maldives. Meanwhile, the

competitor for tuna exports to the

European Union in Mauritius

Consolidation And Implementation Of

Program Development In The

Framework Of Utilizing Market

Potential

Indonesian fish has its advantages

and is liked by consumers in foreign

countries. Types of dried salted fish such

as cork, Kendra, seat, and replacing are

of great interest. Shrimps are very

popular with foreign and domestic

consumers because they taste delicious

and contain very high nutrition (90%

protein in shrimp meat). The Ministry of

Maritime Affairs and Fisheries (KKP)

stated that Indonesia is currently ranked

3rd in the world as an exporter of

ornamental fish. With this ranking, the

value of the ornamental fish market

share reaches 7.5 percent.

"Ornamental fish production is

increasing every year. In 2011 the export

target was 700 million heads but the

realization was 945.3 million heads. In

2012 the target was 850 million heads,

and the production was 1.3 billion

heads. In 2013 the target is 1.1 billion

heads. 26 Likewise with Arowana. With

these various advantages, consolidation

and measurable program planning are

needed. The consolidation is as follows:

CONCLUSIONS

Indonesia has the advantage of

marine commodities both in the land area

of the seafront and in the water and sea in

the coastal areas. In addition, the sea area

has a diversity of sources supporting

marine life such as estuaries, coastal forests

or mangroves, seagrass beds, and coral

reefs which are the main support for the life

and breeding of fish.

The Indonesian ocean contains

various types of tuna, various types of tuna,

various types of snapper, and schoolmaster

Indian threadfish (Alectis indices).

Indonesian terms: Kuwe Rambe, Lowang,

Jebus. Shrimp, Crab, Squid Etc.

Primary productivity in coastal waters

reaches more than 10,000 gr C/m2/year.

This value is very high or much higher than

the productivity of waters in shallow seas,

which is around 100 gr C/m2/year, or

waters in the deep sea, which are only

around 50 gr C/m2/year (Mangalla, 2021).

Apart from the sea, the freshwater

area also contains various types of fish

such as carp, which is the most popular

freshwater fish species for consumption.

Quality carp, Arowana, botia, and Betta

fish, are types of freshwater ornamental

fish from Indonesia that are favorites

abroad.

However, on the other hand,

Indonesia still has weaknesses, especially

the results of catching and managing

marine products which are still

dominated by traditional fishermen and

minimal technology. In addition, the

number of ships and other supporting

Yohanes Ngamal

Eka Setiawati

|1833

infrastructure is still very limited. As a

result of the lack of marine infrastructure,

the distribution of marine products from

one area to another is hampered, thereby

reducing the freshness of marine

commodity commodities, both fish and

other marine products.

Another weakness currently faced by

the government is environmental damage

caused by mining activities which have

caused damage to coral reefs in several

areas such as the fringing reefs in Buyat-

Ratototok Regency, North Sulawesi, caused

by the disposal of underwater tailings from

industrial gold mining. and small scale

using mercury incorporation.

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