Jl. Gatot Subroto No. 44Jakarta 12190, PO. Box 3186Indonesia.

p. +6221 5292 1334 f. +6221 5264 211www.bkpm.go.id e. :info@bkpm.go.id www.bkpm.go.id

GOVERNMENT PROVISIONS AND SUPPORTS The government of Indonesia highly encourages the development of the fish processing and canning industry and therefore, has issued various policies to support the proliferation of the industry at the same time upholding the principles of sustainable fishing. Opportunities of partnership in this sector:• Fishery product processing business (UPI)• Fermentation processing of fishery products• Reduction/ chemical process of fishery products• Surimi and Jelly Fish processing business

Source: BKPM, 2014

For further details of the policies, please visit www.invest.p2hp.kkp.go.id

Indonesia Investment One Stop Service (OSS) Center and Marketing Officer

Indonesian President, Joko Widodo, officially launched the Integrated One Stop Service Centre (PTSP) at Indonesia Investment Coordinating Board (BKPM) in early January 2015. This service aims to smoothen and simplify licensing procedures for investment projects. From now on, investors will not need to visit various ministries or government agencies to obtain necessary permits but can simply turn to the BKPM's OSS centre.In addition, currently the BKPM has established what so called Marketing Officers (MO) who will take care any investment interest to explore investment opportunities in the country. The contact of MO is Directorate of Sector Promotion, BKPM (Phone: [62-21] 525-2008 Ext: 3568, Fax: [62-21] 5288-0390, Email: info@bkpm.go.id).

Local Partner

Ministry of Marine Affairs and FisheriesWebsite: www.kkp.go.id

Association of Indonesian Fishing Companies (GAPPINDO)Address : Wisma Sakura Floor 2 (Jalan Hati Suci No. 4 Taman Kebon Siri, Central Jakarta 1025)

Association of Fish Canning Indonesian Businessmen (APIKI)Address : Inti Utama Building (Jalan Cipinang Indah Raya No. 1 East Jakarta)

Indonesian Institute of SciencesWebsite: www.lipi.go.id

INVESTMENT

FISH

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YBKPM FISH PROCESSIN & CANNING INDUSTRY INVESTMENT_REVISI_foto

Wednesday, August 12, 2015 10:44:58 AM

WHY INDONESIA?

— Indonesia is one of the biggest seafood producer and ranks as one of the major exporting countries in the world seafood industry.

— Ranks among the most productive countries in aqua culture, Indonesia has fairly extensive marine areas, with a vast stretch of sea reaching approximately 5.8 million km2 consisting of archipelagic waters/ marine archipelago and 81,000 km coastline, the second longest in the world after Canada.

— Huge potential marine resources with annual capacity of (6.40 million tons/year) , and fish farming (47 million tons).

— Mastery of the domestic market and the ability to expand the export market.

— Ample supply of human resources in the fishery sector

— Potential development of production centers, including investment in fish processing industry (canned or frozen).

— Support and assistance from Government for the development of the fish processing industry.

FISH PROCESSING& CANNING INDUSTRYINVESTMENT

The marine and fisheries sector is expected to be the dominant sector for economic growth in Indonesia as the largest archipelagic state in the world. The fish processing and canning industry have huge

potential to be further developed in Indonesia. In the National Industrial Development Policy, fish processing industry has set its development through cluster approach in building sustainable competitiveness. With a rapidly-growing and increasingly discerning middle class eager for new and innovative food and b e ve ra ge p ro d u c t s , I n d o n e s i a p re s e nt s international investors with a vast array of opportunities across the food and beverage supply chain, including the fish processing and canning industry in Indonesia.

MARKET OPPORTUNITIES

Modern processing units are generally installed to process products for export market. Commodities include shrimps, tuna and skipjack, fish fillets, tuna loin and tuna steak. There are several processing operations that have strong potential, including (1) freezing, cold storage and ice production; (2) product processing with value added, to meet the increasing market demand for fishery products that are ready to cook (convenience products), such as IQF products, shrimps, breaded fish, and fish balls.

Indonesia as the largest archipelago in the world has a sea area of about 5.8 million km² and according to the World Resources Institute in 1998, Indonesia has 81,000 km coastline which contains fisheries and marine resources, a great potential to be used as the foundation of a nature based economic development.

Fisheries and marine sector will be able to be a main player of the economic growth due to several reasons:

1. Huge untapped production potential to meet the demand from both domestic and export market.

2. Linkage with upstream and downstream industries.3. The fishing industry, biotechnology and marine

tourism properties can be updated to support their sustainable development.

4. The government has pledged significant investment fo maritime infrastructure through the development of new seaports and supporting

facilities. The current plan is to develop new or recuperate seaports for the fisheries industry that

offer lucrative investment opportunities.

Advantage: Current and Future

Indonesia's share in the world market has been increasing, from 1.4 % in 2004 to more than 2 % in 2013, with exports mainly to meet the market of Europe, Japan and America. Domestic consumption of fish and fish products in Indonesia in 2012 was 33.8 kg/capita/year. This figure is similar with Thailand (30kg) but the amount is relatively small when compared with Malaysia (52kg), Hong Kong (72 kg), China

(36 kg), Singapore (70 kg), Taiwan (65 kg), South Korea (60 kg).

At present, the installed capacity of the domestic fish canning industry is around 750,000 tons per year. Production capacity for tuna canning is 400,000 ton per year, and 350,000 tons for lemuru (cob).

Currently there are 38 domestic fish canning factories located in areas from Sumatera to Bali, of which 20 % are

foreign direct investment.

• Production volume of fisheries in Indonesia

Ÿ The Development of the National Canned Fish Production Year 2008 – 2012

The development of the national production of canned fish from 2008 to 2012 increased by an average of 22%.

Potential Area of Fishery Development in Indonesia

Source: www.statistik.kkp.go.id (2014)

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

4,691,796 | 4,651,121 | 4,705,869 | 4,806,112 | 5,044,737 | 5,003,115 | 5,107,971 | 5,384,418 | 5,714,271 | 5,829,194 | 5,863,170

1,224,192 | 1,468,610 | 2,163,678 | 2,682,597 | 3,193,566 | 3,885,206 | 4,708,564 | 6,277,925 | 7,928,961 | 9,675,554 | 13,703,36

Fisheries

Aquaculture

Aquaculture Fisheries

250

200

150

100

50

0

2008 2009 2010 2011 2012

Source: APIKI, 2013.

Province Strength Hotspot

Acehl The area is far away from industry zone

& relatively safe from pollution.

l Has a modern supporting infrastructure, suchas international scaled port which is equipped by cold storage.

l Species: brown marbled giant grouper, snapper, & camouflage grouper.

l Research center in Ujung Batee.

l Has a modern technology which is supporting

the development of aquaculture.

l Located in strategic location: close to

Singapore Hub (as a supporting logistic)

l Species: all various of grouper,

barramundi, pompano, mangrove

snapper, & golden trevally.

l Research center in Batam.

East Aceh, Bireuen, Banda Aceh Coast (North Aceh), & South Aceh.

Availability of workforces: 644.000.

Riau Islands

. Batam, Anambas, Bintan, & LinggaCity.

Lingga is considered as a location that has huge potential in aqua culturing variousfish species.

Availability of workforce: 966.000.

BKPM FISH PROCESSIN & CANNING INDUSTRY INVESTMENT_REVISI_foto

Wednesday, August 12, 2015 10:45:06 AM