FISHERMAN TERMS OF TRADE ACHIEVEMENT BACKGROUND STUDY MARINE AND FISHERIES RPJMN

Transcription

1 FINAL REPORT FISHERMAN TERMS OF TRADE ACHIEVEMENT BACKGROUND STUDY MARINE AND FISHERIES RPJMN Compiled by: Dr.Ir. Istiqlaliyah Muflikhati, M.Si. Dr.Ir. Nurbambang Priyo Utomo Dr.Ir. Sugeng Hariwisudo, M.Sc. Ir. Taryono, M.Si. (BACKGROUND STUDY EXPERT TEAM MARINE AND FISHERIES RPJMN ) PARTNERSHIP OF THE JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) with MINISTRY OF NATIONAL DEVELOPMENT PLANNING/ BAPPENAS DECEMBER 2013

2 TABLE OF CONTENT I. INTRODUCTION Background Problem Identification Objectives... 4 II. METHOD Theoretical Foundation Fisheries, Fisheries Household, Fisherman, and Fish Cultivator Index Fisherman and Fish Cultivator Terms of trade Welfare Study Framework and Approach Study Framework Study Approach Framework Data Collection Method Analysis Method Simple Prediction Analysis Business Analysis Gap Analysis Path Analysis III. FISHERIES RESOURCE AND BUSINESS CHARACTERISTICS Capture Fisheries Fish Resource Fisherman Capture Fisheries Business Scale Capture Fisheries Fleet Variability Capture Fisheries Infrastructure Market Cultivation Fisheries Cultivation Fisheries Resource Fish Cultivator Cultivation Fisheries Business Scale Cultivation Fisheries Input and Technology Variability Cultivation Fisheries Infrastructure Market IV. FISHERIES BUSINESS CHARACTERISTICS Capture Fisheries Business Final Report Page i

3 4.1.1 Capture Fisheries Business Profile Capture Fisheries Business Revenue Structure Capture Fisheries Business Cost Structure Cultivation Fisheries Business Cultivation Fisheries Business Profile Cultivation Fisheries Business Revenue Structure Cultivation Fisheries Business Cost Structure V. CHARACTERISTICS OF FISHERIES HOUSEHOLD Fisherman Household Fisherman Household Total Membership Education Fishermen Household s Income and Expense Fish Cultivator Household Fish Cultivator Household Total Membership Fish Cultivator Household Education Fish Cultivator Household Income and Expense VI. ANALYSIS OF FISHERMAN TERMS OF TRADE (NTN) AND FISH CULTIVATOR TERMS OF TRADE (NTPi) NTN Growth and Achievement Household Consumption Index Production Cost and Capital Goods Gain (BPPBM) Index Refinement on Fisherman Welfare Measurement Factors Contributing to Fisherman and Fish Cultivator Households Welfare Price Dynamic Approach Income and Expense per Capita Approach Issues and Problems Related to Fisherman and Fish Cultivator Welfare Improvement Fisherman Fish Cultivator VII. POLICIES AND STRATEGIES ON FISHERMAN AND FISH CULTIVATOR WELFAREIMPROVEMENT VIII. CONCLUSIONS AND RECCOMENDATIONS Conclusions Reccomendations TABLE OF CONTENTS Final Report Page ii

4 LIST OF TABLES No. Page Capture fisheries production according to provinces in The number of fishermen in Indonesia according to the category and province in The Number of Capture Fisheries Household (FH) According to Business Scale in The number of Fish Capturing Fisheries Household (FH) According to Provinces in 2007 and The Number of Marine Capture FH/FC in Indonesia according to provinces in The Number of Capture FH/FC in Indonesia according to Business Scale and Provinces in The number of fishing boats in Indonesia according to category and province in The number of marine fishing boats in Indonesia according to province, motor category and size, in The number of marine fishing gears according to types and provinces in The Number of Fishing Ports in Indonesia in The growth of Ice and Coldstorage Factories established by Ministry of Marine and Fisheries, Total area of cultivation fisheries land according to category, (in Ha) Cultivation fisheries land total area according to the main islands, Fish production according to commodities in Indonesia for period The number of fish cultivators according to cultivation types in (unit: person) Cultivation fisheries business scale according to business size category The number of Marine Cultivation FHs according to business scale category The number of Pond Cultivation FHs according to business scale category The number of Fishpond Cultivation FHs according to business scale category The number of Keramba Cultivation FHs according to business scale category Final Report Page iii

5 The number of Floating Nets Cultivation FHs according to business scale category The number of Wetland Cultivation FHs according to business scale category Food needs according to the main commodity (in tons) General Data of Unit Scope Laboratories, Directorate General of Cultivation Fisheries Fish production values according to cultivation types in (x Rp 1000.) Fish production values according to cultivation commodities in (x Rp 1000) Investment components for coping fisheries business in 10 GT business scale for year of Cost components for coping fisheries business in 10 GT business scale in Revenue gained from coping fisheries business in 10 GT business scale in Business analysis for coping fisheries business in 10 GT business scale in Investment components for trolling line fisheries business in 15 GT business scale in Cost components for trolling line fisheries business in 15 GT business scale in Revenue gained in trolling line fisheries business in 15 GT business scale in Business analysis for trolling line fisheries business in 15 GT business scale in Investment components for portable trap fisheries business in 15 GT business scale in Cost components for portable trap fisheries business in 15 GT business scale in Revenue gained from portable trap fisheries business in 15 GT business scale in Business Analysis for portable trap fishing in 15 GT scale in Investment components for gillnet fisheries business in 2 GT business scale in Cost components for gillnet fisheries business in 2 GT business scale in Revenue gained from gillnet fisheries business in 2 GT business scale in Business analysis for gillnet fisheries business in 2 GT business scale in Final Report Page iv

6 Investment components for cantrang fisheries business in 20 GT business scale in Cost components for cantrang fisheries business in 20 GT business scale in Business analysis for cantrang fisheries business in 20 GT business scale in Investment components for pole and line fisheries business in 35 GT business scale in Cost components for pole and line fisheries business in 35 GT business scale in Revenue gained by pole and line fisheries business in 35 GT business scale in Business analysis for pole and line fisheries business in 35 GT business scale in Revenue structure of coping fisheries business in 10 GT business scale Revenue structure of trolling line fisheries business in 15 GT business scale Revenue structure of portable trap fisheries business in 15 GT business scale Revenue structure of gillnet fisheries business in 2 GT business scale Revenue structure of cantrang fisheries business in 20 GT business scale Revenue structure of pole and line fisheries business in 35 GT business scale Cost structure of coping fisheries business in 10 GT business scale in Cost structure of trolling line fisheries business in 105GT business scale in Cost structure for portable trap fisheries business in 15 GT business scale in Cost structure of gillnet fisheries business in 15 GT business scale in Cost structure of cantrang fisheries business in 20 GT business scale in Cost structure of pole and line fisheries business in 35 GT business scale in The categorization of aquaculture commodities according to morphological characters and habitat along with several examples of known commodities The number of Fisheries Cultivation Companies according to Cultivation Type, Vannamei prawn business funding for 3(three) swaths of m 2 /planting season Final Report Page v

7 4.2.4 Milkfish business funding / Ha/Planting Season Patin fish business funding /swath of 50 m 2 floating net / Planting Season Tilapia fish business funding /swath of 100m 2 /planting season Catfish business funding / swath of 50 m 2 / planting season Cultivation Fisheries Business Cost Structure Average numbers of Fisheries Household (FH) Membership according To Provinces in 2007 and Fishing Activities Contribution on Household Income Intermediate Scale Capture Fisheries Household Income per Month in Bitung City according to Ownership Status in Small Scale Capture Fisheries Household Income per Month in Average expense per capita and food expense percentage in fisherman household and poverty threshold according to provinces in Average Numbers of Fish Cultivator Fisheries Household (FH) Membership according to Provinces in 2007 and Fisheries Sector Contribution on Fish Cultivator Household Income per Province Freshwater fish cultivator household income in Cianjur and Subang in Brackishwater fish cultivator household income in Gresik and Pangkep in Marine cultivation household income in Klungkung in Average expense per capita and percentage of food expense on fish cultivator household and poverty threshold according to provinces Growth rate and fisheries terms of trade s components index coefficients, January 2008-May The Growth Rate of Fisherman and Fish Cultivator Terms of Trade Components, January 2008 December Received Index (IT) and Paid Index (IB) Elasticity on Terms of Trade IT Components Index Elasticity on IT-NTN Index IT Components Index Elasticity on NTN and NTPi Elasticity of IB Component Index on Terms of Trade Fisherman and Fisheries Terms of Trade Index Growth rate, January 2008 December Index Growth Rate for Household Consumption and Its Components Household Consumption Component Index Elasticity on Household Consumption Index BPPBM and Its Component Index Growth Rate Component Index Elasticity on BPPBM Index Volume (tons) and Value (US$) of Imported Raw Material/Fish Feed Final Report Page vi

8 LIST OF FIGURES No. Page 1.1 NTN development (BPS, 2013) Figure 2.1. Study framework for analysis of fish cultivator and fisherman terms of trade (NTPi/NTN) in the formulation of background study of national RPJMN Study Approach Framework Gap Analysis Path analysis of factors influencing NTN and NTPi Fish production according to fish group in Indonesia in Big pelagic production in Indonesia in Small pelagic production in Indonesia in Small demersal production in Indonesia in Big demersal production in Indonesia in Crustacean production in Indonesia in Mollusk production in Indonesia in Quarterly production fluctuation pattern of capture fisheries in Indonesia for period Fisheries quarterly production fluctuation pattern in Indonesian west region in period Fisheries quarterly production fluctuation pattern in Indonesian central region in period Fisheries quarterly production fluctuation pattern in Indonesian east region in period Development of capture fisheries household/fishing company numbers Percentage of Capture FH based on Business Scale Graph of Shipjack Tuna s Price in December 2011 in Several Locations Graph of Mackerel Tuna s Price in December 2011 in Several Locations Graph of Mackerel s Price in December 2011 in Several Locations Graph of Mackerel Scad s Price in December 2011 in Several Locations Graph of Banana Prawn s Price in December 2011 in Several Locations Graph of Tiger Prawn s Price in December 2011 in Several Locations Final Report Page vii

9 Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Indonesia in Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Sumatera in Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Java in Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Bali-Nusa Tenggara in Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Kalimantan in Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Sulawesi in Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Maluku-Papua in Cultivation fisheries production from (million tons) Cultivation fisheries production in 2012 according to provinces Cultivation fisheries production according to business types (in tons) Cultivation fisheries production according to yearly quarter and Islands (in tons) Cultivation fisheries production according to yearly quarter for Sumatera, Java and Bali-Nusa Tenggara (in tons) Cultivation fisheries production according to yearly quarter for Kalimantan and Sulawesi (in tons) Cultivation fisheries production according to yearly quarter for Maluku-Papua (in tons) The number of cultivation fisheries FHs according to business types The number of cultivation fisheries FHs according to island distribution The number of cultivation fisheries operators according to island distribution (unit: person) Cultivation fisheries FHs contribution in 2012 according to island distribution (%) Fish cultivators distribution in 2012 according to island (%) Cultivation fisheries production total value according to business types (x Rp million) Cultivation fisheries production values according to commodities (x Rp 1000) Indonesian fisherman family size average in 2007 and Percentage of fisherman household according to head of household s education level in 2007 and Amount and proportion of food and non-food expenses in fisherman household Fish Cultivator Household Membership in 2007 and Final Report Page viii

10 5.2.2 Fish cultivator household proportion according to the head of household s education level Amount and proportion of food and non-food expenses in fish cultivator household The growth of Fisheries and Its Components Terms of Trade The growth and dynamic of NTN, NTPi, and the components Dynamic of Fisherman Terms of Trade Index Value Monthly NTN growth dynamic Fisheries Household Consumption Index The dynamic of Fuel Price Index, Household Consumption Index and Transportation and Communication Index from Fisheries Terms of Trade Index Dynamic for Fisherman Household Consumption and Its Components Index Dynamic for Fish Cultivator Household Consumption and Its Components Index dynamic for Fisheries BPPBM and Its Components Dynamic of Fisherman BPPBM and Its Components Dynamic of Fish Cultivator BPPBM and Its Components Factors contributing to fisherman welfare Factors contributing to fish cultivator welfare Final Report Page ix

11 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN I. INTRODUCTION 1.1 Background Currently, Fisherman Terms of trade (NTN) and Fish Cultivator Terms of trade (NTPi) are the proxies to measure fisherman and fish cultivator welfare level that is one of the objectives in RPJMN In 2014, it is expected that fisherman and fish cultivator welfare level will be better, which is reflected in NTN and NTPi index. NTN is the comparation between price received and paid by fisherman which is stated in index or percentage. Conceptually, NTN states the trade capacity for goods (production) produced by fisherman in the coastal village on goods/service needed for household consumption and the necessities for capture fisheries production process. In line with NTN, NTPi is an indicator to measure the trade ability of product (commodity) produced/sold by fish cultivator on products needed for production (business) or for household consumption. In general, it means that if NTN or NTPi is higher than 100, the purchase ability of fisherman and fish cultivator is relatively better than basic year period (year of 2007), conversely if NTN or NTPi is lower than 100 it means that there is reduction in fisherman and cultivator purchase ability. If NTN or NTPi is higher or equals to 100, it indicates the fisherman and fish cultivator welfare is relatively good or in other words the received index is higher than paid index. Meanwhile, for NTN and NTPi less than 100 it reflects low welfare or that the paid index is higher than received index. For the last 5 years, NTN value is higher than 100 and tends to rise (Figure 1.1). It shows the trade ability level of fisheries product produced by fisherman is higher than goods/service needed to for fisherman household s consumption and production. However, NTN shift tends to be stagnant in the last year. Fluctuation of NTN value in that period of time is caused by the change in the dynamic of several factors that are influencing estimation. It is similar with NTN scope on national and province level, which surely will be different from each others. Final Report Page 1

12 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Figure 1.1. NTN development (BPS, 2013) The theory conception that is being adopted in NTN or NTPi measurement is Modified Laspeyers Index, which is only estimates the price shift through price index. Rising price in famine season causes NTN or NTPi to rise, while when the production is abundant price will tends to fall in accordance to the market mechanism which causes NTN or NTPi to decrease. This study is needed to examine the main factors causing the significant fluctuation on NTN or NTPi as well as to further analyze the NTN and NTPi as the indicators for welfare. NTN and NTPi are expected to be the appropriate instruments to represent fisherman and fish cultivator welfare in Indonesi. 1.2 Problem Identification Factors influencing welfare can be categorized into economic, social and psychological factors. One way to measure welfare from economic perspective is through terms of trade approach. Fisheries terms of trade should be able to describe the ability of fisheries business operators (capture and cultivation) to fulfill their needs (goods and services) with the resources gained from fisheries business activities. The measurement with this concept is deemed to be better in reflecting the actual condition, because the measurement that only sees (household) income change without considering the cost change is not describing their welfare in a comprehensive manner. If the concept of fisherman terms of trade (NTN) and fish cultivator terms of trade (NTPi) are indeed describing the indicators to measure purchase ability for goods and service needs, then the higher the index value of terms of trade, the purchase ability will be better. Terms of trade index (NTN and NTPi), if indeed capture welfare, should depict the public actual welfare condition. It is should also illustrated in the dynamic of fisheries Final Report Page 2

13 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN business (capture and cultivation) as the main source of fisheries household purchase ability, so that should be supported by fisheries business condition variability. It will be antagonistic to see that the dynamic of fisheries business (cultivation and capture) is undeveloped, but has a high NTN which illustrates the relatively high fisherman welfare in that particular region. One instance is on 2012, provinces with the highest NTN are Maluku (125.46), East Nusa Tenggara (116.48), South Sumatera (115.43), and Yogyakarta (114.53). In reality, the terms of trade based on existing data is dynamic and fluctuating. In accordance with the logic that terms of trade index should illustrates the fisheries household purchase ability, in the last several years there is a constant growth. It becomes an interesting topic to be discussed, both on index figure estimation method, welfare factual dynamic on fisheries business operator level, and whether the businesses operated by government are appropriate to improve welfare. If welfare from economic perspective is simplified to be the ability to fulfill all life needs (expense) from business income which is operated by fisheries household (capture and cultivation), the policy intervention to increase the received index (income) and paid index (expense) needs to be identified, so that the policy in general should includes the two components. In order to increase terms of trade as the proxy of welfare, government policies need to be identified, both on the income and expense side. Based on the argument above, the problem identifications of this research are as follow. 1. How is the current condition of fisheries business (capture and cultivation) and fisheries households in Indonesia? 2. How is the dynamic of fisherman terms of trade and fish cultivator terms of trade in Indonesia, based on the existing estimation method, both according to time and regions? 3. Are the fisherman and fish cultivator terms of trade index figure resulted from the existing method and approach in line with the actual condition on field? 4. What factors that influence fisherman and fish cultivator terms of trade index? 5. Is the developmental policy established by the government appropriate with the need to increase fisherman and fish cultivator terms of trade index, and what are the problems faced? 6. What policies are needed to increase fisherman and fish cultivator terms of trade index as the proxy of their welfare in Indonesia? Final Report Page 3

14 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Objectives In general, the aim of this study is to support the background study of RPJMN in Marine and Fisheries sector, especially in relation to NTN and NTPi, to gain recommendations in the formulation of objectives and policies to improve fisherman and fish cultivator welfare in RPJMN In addition, the study is particularly aimed to: 1. Describe the characteristics of fisheries resources, fisher business, and fisheries household. 2. Analyze the achievement of fisheries terms of trade (NTN) and fish cultivator terms of trade (NTPi) on national level. 3. Analyze the household consumption, production cost, and capital goods addition (BPPBM) as the base in the analysis of fisherman and fish cultivator paid index and received index. 4. Analyze factors influencing fisherman and fish cultivator welfare. 5. Formulate the government policies and incentive alternative to improve fisherman and fish cultivator welfare which support the implementation of marine and fisheries development in period. Final Report Page 4

15 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN II. METHOD 2.1 Theoretical Foundation Fisheries, Fisheries Household, Fisherman, and Fish Cultivator a. Fisheries Indonesian Republic Law No. 45 Year 2009 about The Amendment of Law No. 31 Year 2004 about Fisheries stated that fisheries is all activities related to management and exploitation of fish resources and its environment, started from pre-production, production, processing until marketing which are implemented in a fisheries business system. In short, according to Ministry of Marine and Fisheries 2012, fisheries is the economic activity in the sector of fish/other water animal/water plants capturing/cultivation. It is in line with the statement in Indonesian Republic Law No. 45 year 2009 which describes that what it means by fish is all kind of organisms which its all or partial life cycle occurred in waters. Fisheries activities are categorized into two activity group, namely fish capture activity (capture fisheries) and fish cultivation activity (cultivation fisheries). Capture fisheries is the economic activity in capture sector, namely capturing or gathering fish/other water animal/water plants which live freely in the sea/public waters and not owned by any individuals. In general, capturing is aimed for fish/other water animals/water plants which is alive. Clam collecting is also categorized into capturing activity. According to the capturing place, capture fisheries is classified into capture fisheries in sea and capture fisheries in public water. Cultivation fisheries is the economic activity in fish/other water animal/water plant sector. Fisheries cultivation is the activity of raising fish/other water animal or water plant which is owned by individual and group. Fisheries cultivation is defined as an activity to produce aquatic biota (organism) in controlled manner in order to gain profit. With the emphasis on controlled condition and orientation to gain profit, this definition contains the meaning that fisheries cultivation activity is an economic activity (based on economic principles) which is directed for industry (exact time, exact amount, exact quality, and exact price). Fish cultivation activity has several terms; among others are aquaculture, cultivation fisheries, fish farming and water cultivation. Aquaculture is derived from English s aquaculture (aqua = waters, culture = cultivation) and translated into Bahasa Indonesia into budidaya perairan or budidaya perikananan. The fisheries statistic uses the term budidaya perikanan (fish cultivation) to record data on fish cultivation, as how the perikanan tangkap (capture fisheries) term is used for fisheries production activity through Final Report Page 5

16 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN capturing activities. There is an effort, especially from academic circle, to promote the use of aquaculture term as the substitute of fisheries cultivation to make it closer to the term used worldwide, aquaculture. According to the water source used for fisheries cultivation production activity, there are freshwater cultivation, brackishwater cultivation, and marine cultivation. Freshwater cultivation is conducted by using water from fresh waters, while brackishwater cultivation and marine cultivation each uses brackish waters and sea as water sources. The existence and nature of water source influence the fisheries cultivation, including the selected commodity (biota). The raised commodities in freshwater cultivation, brackishwater cultivation and marine cultivation are species gained from the said habitats or already adapted to each freshwater, brackiswater, and marine environments. Freshwater cultivation commodity is aquatic biota which has freshwater as its natural habitat. Brackishwater cultivation and marine cultivation commodities are aquatic biotas which have brackishwater and sea as natural habitats. Brackishwater biota is generally has a high tolerance to wide salinity, from almost fresh waters to almost salty waters (sea), so that the biota can be cultivated outside its natural habitat. According to Indonesian fisheries statistic, fisheries cultivation can be classifief into six groups, namely: a) sea cultivation, b) pond cultivation, c) fishpond cultivation, d) cage (keramba) cultivation, e) floating net cultivation, and f) wetland cultivation. b. Fisheries Household Household, according to Bryant and Zick (2006) is a small group of people using the same common resource to achieve a particular objective. Differs from family, which must have blood connection, marriage bond, or adoption, household can also be a family but can be a group of people without any marriage or blood connection which live inside one house and using the same resources. For example, if there is one or more household maid that lives inside her/his employer s home, then the maid is not the employer s family member but the household member of the employer s house. In other words, household is a group of people, both with and without blood connection, that live inside one house and use the same resource to achieve particular objective. Fisheries household is a household which depend its life on or one of the members has the employment in fisheries activities. In line with the fisher definition, fisheries household is also categorized into capture fisheries household and cultivation fisheries household. Final Report Page 6

17 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Capture fisheries household Capture fisheries household is a household which conduct fish/other water animal/water plant capturing operation activities with the objective to partially or fully sell the products. This fisheries household capturing operation can be conducted only by that particular household, or by that particular household along with work force or only by work force. Thus, the fisheries household is also an economic unit. According to the level/size of business or boat used, capture fisheries household is classified as: 1) Not using any kind of boat, 2) Using boats without any motors, namely: jukung, board boat, small boat (less than 7 m long), medium sized boat (with length between 7-10m), and big boat (more than 10 m long), 3) Using boats with outboard motors, and 4) Using motor boats. Household using motor boats, according to its tonnage, can be classified into: less than 5 GT, 5-10 GT, GT, GT, GT, GT, GT, GT, GT, GT and more than 1000 GT. Cultivation fisheries household Similar with capture fisheries household, cultivation fisheries household is the household which depends its life on fish/other water animal/water plant cultivation activities with the objective to partially or fully sell the products. Thus, this fish cultivator household has the employment as fish cultivator. c. Fisherman A fisherman, according to Indonesian Republic Law No. 31 year 2004, is a person whose employment is to capture fish. Meanwhile, according to fisheries statistic, a fisherman is someone who actively do his work in fish/other water animal/water plant capturing operation. People who only does work such as creating net, transporting tools onto the boat, is not classified as a fisherman. However, mechanic and cook who are working on a fish boat is classified as fisherman, even though they are not directly doing the capturing. Indonesian Capture Fisheries Statistic classified fisherman according to the time used to capture fish, namely : 1) Full-time fisherman, namely a fisherman whose time is all used to work in fish/other water animal/plant water capturing operation. Final Report Page 7

18 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN ) Major part-time fisherman, namely a fisherman whose most of his/her time is used in fish/other water animal/plant water capturing operation. In addition to work in capturing, fisherman in this category also has other employment. 3) Minor part-time fisherman, namely a fisherman whose a small part of his/her time is used to work in fish capturing. However, in Indonesian regulation there is still no detailed definition about how much time used by the fisherman to be classified into full-time, major part-time, or minor part-time fisherman. d. Fish Cultivator Referring to article 1 Law 31/2004 and article 1 verse 6 Law 45/2009, fish cultivator is a person whose employment is conducting fish cultivation. The activities of fish cultivation includes the activity to keep, raise, and/or breed fish as well as harvesting the result in a controlled environment, including the activity of using boats to load, transport, store, chill, handle, process, and/or preserve the products. A main fish cultivator is a cultivation business operator which most or all of his/her income comes from cultivation fisheries business, while part-time cultivation business operator is a cultivation business operator that most of his/her income is not from fisheries cultivation business. Fisheries business in the form of fisheries product through cultivation is known as cultivation fisheries business or aquaculture. According to time used to conduct cultivation activities, fish cultivator can be classified as: 1) Full-time cultivator, namely a cultivator that all of her/his work time is used to conduct fish cultivation activities. 2) Part-time cultivator, namely a cultivator that only half of her/his time is used for fish cultivation activities. This study mostly focuses on full-time cultivator or main cultivator which all of her/his time and life depends on fish cultivation business Index Index or index figure is a statistic measure which shows a change of one or a group of variables related to each other in the different time or space. Index figure is typically used as measurement tools to know the change in one variable based on time. Index figure is usually in the form of ratio which is multiplied by 100, so that the basis of any index figure is always 100. Final Report Page 8

19 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN The time used in index figure calculation consists of based period and current period. Based period is the time used as the basis to compare an activity, while current period is the time which is compared based on the based period. Index figure that are mostly used consist of: 1) Price Index This index is aimed to measure price change between two time interval, for instance between years, month, quarter, and so on. 2) Quantity Index Quantity index measures the change of several quantities such as production or goods sale from time to time. 3) Value Index Value index measures the change of goods value, which is the multiplication of price with the quantity of goods, from time to time. In calculating index figure, there are four types of calculation methods, namely: 1) simple relative method, 2) simple aggregate method (unweighted index), 3) relative average method, and 4) weighted aggregative method. As the name suggests, simple relative index is the simplest index measurement method, because it only compares the price of one type of goods for two time intervals. Simple aggregate index (unweighted index) considers all measure variables to have the same index value. This method is also a simple and practical method in measuring an index. Meanwhile, in relative average method, the calculation is began with calculating every component indices, then making the average from all individual indices gained. The chain method calculates index in the chained manner, namely compares this year s index (t) to the previous year s (t-1), t-1 year s index with the previous year s (t-2), and so on. Differ from the simple and unweighted method, in weighted aggregative method the weight is used to distinguish one variable to others. This method in practice has several calculation manners; among others are Lowe, Laspayres, Paasche, Fisher and Walsh Index. The calculations for Lowe, Laspayres, and Paasche index are basically the same, and only differ on the quantity of goods and services used. Lowe index uses quantity of goods in year b, namely the year between the based year (0) with calculated year (t), Laspayres index uses quantity of goods on the based year (0), while Paasche index uses quantity of goods on the calculated year (t). Final Report Page 9

20 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN If: p 0 i = goods i price on the based year (0), p i t = goods i price on the year t q i 0 = quantity of goods i on the year 0 q i t = quantity of goods i on the year t q b i = quantity of goods i on the year b b = year between 0 and t Then the calculation formulas for the three indices are as follow (IMF, 2004): Lowe index (P LO ): P n i 1 LO n i 1 p q p t i 0 i q b i b i Laspayres index (P L ): P L n i 1 n i 1 p q p t i 0 i q 0 i 0 i Paasche Index (P P ): P P n i 1 n i 1 p q p t i 0 i q t i t i The usage of quantity of goods on the different years (Laspayres and Paasche index) turns out to produce different values of price index. Fisher refined the index by combining Laspayres index with Paasche index which is then known as Fisher price index (P F ) with the following formula: P F P xp L P Next, Walsh formulates price index which uses geometrical average of goods quantity on year 0 and year t, so that Walsh price index (P W ) is as follows: P W n i 1 n i 1 p p t i 0 i q 0 i q 0 i q q t i t i Final Report Page 10

21 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Fisherman and Fish Cultivator Terms of trade Terms of trade is an approach to know the value comparison of one commodity to another. This concept has been used and developed for various needs. According to Rachmat (2000), there are minimum five concepts of terms of trade developed especially in Indonesia to measure agricultural product terms of trade, namely: (a) Barter Terms of Trade, (b) Factorial Terms of Trade, (c) Income Terms of Trade, and (d) Subsistence Concept and (e) Regional Terms of Trade which is the forerunner of Farmers Term of Trade calculation. Barter terms of trade is the comparison between agricultural commodity price (p x ) with other commodity price (p y ). The formula from barter terms of trade (NTB) is as follow: px NTB p y Factorial terms of trade (NTF) is the refinement of barter terms of trade (NTB) because it already calculated productivity. Factorial terms of trade can be in the form of single factorial value (NFTF) which only incorporating agriculture sector productivity (z x ) and double factorial terms of trade (NTFG) namely terms of trade that already incorporating agriculture sector (z x )and other sector productivity (z y ). The formula for factorial terms of trade is as follow:: pxzx NTFT p y NTFG pxzx p z y y Income terms of trade (NTR) is the comparison between result received by farmer with the expense paid by the farmer. Income is the multiplication from production quantity (q x ) with commodity price (p x ). The formula is as follow: pxqx NTR p q y y Subsistence terms of trade (NTS) illustrates the trade ability from income result with expense which consists of consumption expense and production expense. The formula uses to calculate NTS is as follow: NTS p yi q yi p xi q xi p yj q yj Final Report Page 11

22 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Description: p xi = prices of commodity on agriculture i q xi = quantity of commodity on agriculture i p yi = price of input production on agriculture i q yi = quantity of input production on agriculture i p yj = price of household consumption goods q yj = quantity of household consumption goods Since 1983, BPS already developed Farmer Terms of Trade (NTP) as one of the proxies to measure farmer s welfare level. NTP is the comparison figure between the index of received price by the farmer (IT) with the index of paid price by the farmer (IB). The calculation of price index used is based on the Laspayres price index, namely using the quantity of goods on the based year as the basis of calculation. Meanwhile, the formula from NTP is as follow: NTP It Ib The index of price received by fisherman/fish cultivator (IT) and the index of price paid by the fisherman/fish cultivator (IB) is calculated by the formula of developed Laspayres index (Modified Laspeyres Index), namely It n i 1 P P ( t 1) i n ti i 1 P P 0i ( t 1) i Q 0i Q 0i x 100 Description: I t P ti = received index/paid index = price of goods i on year t P (t-1)i = price of goods i on year t-1 Q oi = quantity of goods i on the based year (year 0) P (t-1)i Q oi = weight value of goods i on year t-1 P oi Q oi = weight value of goods i on the based year According to the Statistic Agency, the benefit and use of NTP are: a. From Farmer s Received Price index (IT), the fluctuating price of goods produced by the farmer can be seen. This index is also used as supporting data in the agriculture sector income calculation. Final Report Page 12

23 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN b. From Farmer s Paid Price (IB), the fluctuating price of goods consumed by farmer which is the biggest part of village community, as well as the fluctuating price of goods needed to produce agriculture products can be seen. IB development can also illustrate the inflation development in village regions. c. NTP has the function to measure the trade ability of product sold by farmer with the product needed by farmer in the production and household consumption. d. NTP figure shows the competitiveness level of agriculture product compared to other product. On this basis, the effort for product specialization and product quality improvement can be carried out. NTP which is developed by BPS consists of five commodities, namely food crops, horticulture, farming, husbandry, and fisheries which consists sea and land fisheries. Along with the establishment of Ministry of Marine and Fisheries, fisheries s own terms of trade was developed which consists of fisherman terms of trade (NTP) and fish cultivator terms of trade (NTPi). Terms of trade (NTN and NTPi) is one of the main performance indicator (IKU)from Ministry of Marine and Fisheries which is perceived to be able to illustrates the development of community income and expense simultaneously in one index value. NTN and NTPi are the NTP concept adoption which is long used by Ministry of Agriculture to measure the development of farmer s welfare because it s closely related to income and expense which become the proxy for welfare (Ramadhan et al., 2012). NTN and NTPi are related to the fisherman and fish cultivator s ability and purchase ability in supporting her/his household. If the received income increases due to increase on production price is greater than increase on purchased price, then it will indicates the increase of fisherman and fish cultivator s ability and capacity or welfare. The study result of Ramadhan et al. (2012) indicates that the calculation of Fisherman Terms of Trade uses Laspayres price index turns out not able to illustrate the actual welfare of fisherman. It is because the fisheries commodity price (fish price) is highly influenced by fish availability (supply) which is highly dependent on the season. Therefore, index used in National Panel of Fisheries and Marine (Panelkanas) is Value Index which is the comparison of value formed from price and quantity. This index measures value change between times so it illustrates the ratio from the formed value. The formula for value index is as follows: VI n i 1 n i 1 p q p t i 0 i q t i 0 i Final Report Page 13

24 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Description: VI = Value Index t p i p 0 i t q i = price of goods i during observation (t) = price of goods i during initial observation = quantity of goods i during observation (t) q 0 i = quantity of goods i during initial observation Welfare One of the development objectives in almost all countries in the worlds is basically to improve the society s welfare. Welfare refers to economic wellbeing of individual, family, group, or community. Welfare can be defined as the condition of fulfillment of both material and spiritual needs. According to Behnke and Macdermid (2004), welfare is defined as an individual or other social unit life quality. Individual life quality consists of various aspects; economic, social and psychological. Siahaan (2004) stated that the proxy of life quality is the quantitative value with minimum standard (adequate food, apparels, house, and other urgent needs). Bryant and Zick (2006) gave a more universal life quality parameter, namely the magnitude of choice. The more freedom to make a choice, the quality of life will be higher. The magnitude of choice is determined by ownership and access to available resources, be it financial, material, natural, or human resources. There are several indicators to measure welfare. According to analysis unit, welfare can be measured through micro and macro approaches. Micro approach measures individual, family or household s level of welfare. Meanwhile, macro approach measures the welfare level of community in regional or national level. From data aspect, welfare can be measured through quantitative (quantitative wellbeing) and qualitative (qualitative wellbeing) approach. There are various indicators to measure welfare. From analysis unit, welfare can be measured through micor and macro approach.micro approach measures individual, family or household welfare level. While macro approach measures community welfare level on regional or national level. From data aspect, welfare can be measures through quantitative (quantitative well being) and qualitative (qualitative well being) approach. Quantitatively, individual welfare can be measured through income per capita or expense per capita. Qualitatively, individual welfare can be seen from personal experience or that particular individual s assessment, such as the perception on emotional or spiritual wellbeing, or through objective measurement such as physical health index, for instance blood pressure (Behnke and MacDermid, 2004). Final Report Page 14

25 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Meanwhile, family or household welfare measurement is becoming more complex, because family consists of a group of individuals living and interacting together to achieve a common goal, namely family welfare. There are two approaches in measuring family welfare. According to Thompson and Walker (1982), family welfare measurement with a simple approach is by measuring individual wellbeing for every family member. Family welfare is the sum of individual wellbeing. On the second approach, family welfare is seemed to be more than the sum of individual wellbeing, but a completely different thing. In this approach, in addition to individual wellbeing of family members, the dyadic relationship between family members and the family wellbeing as a whole are taken into consideration (Muflikhati, 2010). Various indicators or method of measurement are used to measure family welfare, but there is not an exact or ideal measurement to measure the level of family welfare. Muflikhati (2010) stated the result of content analysis carried out by Martinez et al. (2003) which shows that in general family welfare is illustrated in relation to health and wellness, economic factors, healthy family life, education, community life and community support, as well as culture and diversity). In Indonesia, in Law No. 10 year 1992 it is stated that a prosperous family is a family which is formed based on a legal marriage, is able to adequately fulfill spiritual and material needs, devoted to God, has a harmonious and balanced relationship between family members and between the family and its environment and community. Considering the definition, family welfare consists of various aspects and not only on physical needs fulfillment but also on psychological needs fulfillment. Referring to that, Family Planning Coordination Agency (Badan Koordinasi Keluarga Berencana BKKBN) developed the indicators for a prosperous family which consist of various aspects and categorized them into Pre-Prosperous Family, Prosperous Family (Keluarga Sejahtera KS) I, KS II, KS III, and KS III plus. Welfare measure used by various countries among others is income per capita which is issued by the World Bank. According to the World Bank, a person can be considered as very poor if he/she lives with income less that US$1 (Parity Purchasing Power/PPP) per day. Meanwhile, a person is said to be poor if her/his income is less than US$2 per day. Based on the standard, 21% of world s population is in very poor condition, and more than half of world s population is in poor condition. Therefore, individual or household with PPP income less than US$2 can be said not prosperous. From macro viewpoint, community welfare is one of the indicators of a nation s developmental success. World Bank classified countries according to national income per Final Report Page 15

26 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN capita (Gross National Income per capita) into low income, intermediate income, and high income countries. Until the year of 2012, Indonesia is still classified into a country with medium level income. United Nation Development Program (UNDP) issued human development index (HDI) to measure the success of economic development. HDI measures three dimensions on human development namely health, education and economy. Health dimension is measured from life cycle and health lifestyle which is measured by life expectancy. Education is measured from adult s literacy level and school year. Economy dimension captures the life standard which is measured from PPP. The three dimensions is calculated into index and then are averaged to gain HDI figure or HDI index. In the HDR report in 2013, Indonesia is still classified on intermediate level on human development, specifically on 121 st rank from 186 countries in the world (UNDP, 2013). BPS in the year of 2012 published the Society Welfare Indicator which consists of various aspects, namely: demographic, health and nutrition, education, labor, consumption level and pattern, residential and environment, poverty, and other social aspects. In the publication, there are various conditions related to the six aspects but there is no particular figure to measure welfare in general. In the society welfare indicator, the region or province can be distinguished but household with various employments can t be distinguished, for instance farmer household, fisherman household, trader household, civil worker and so on. A proxy to measure farmer welfare is farmer terms of trade (NTP) which is developed by BPS since At that time, it was used to measure agricultural commodities terms of trade in the wide definition (food crops, farming crops, husbandry and fisheries). Meanwhile, fisheries terms of trade that consists of fisherman and fish cultivator terms of trade is only measured since Fisherman and fish cultivator terms of trade are expected to be the indicators of welfare because this terms of trade measures household purchase ability level. The increase in terms of trade means the increase in purchase ability, which means the increase in welfare. 2.2 Study Framework and Approach Study Framework Welfare is a multidimensional concept. Conception about welfare measures many indicators. Welfare measures life quality, which reflects economic, social and psychological aspect. In economic aspect, welfare is the ability to fulfill the life needs. Final Report Page 16

27 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Source to fulfill the needs comes from the ability of their own or from outside of their capacity. From economic viewpoint, the ability to fulfill needs is illustrated from the purchase/pay ability for all life needs, so it s illustrated from the comparison between income with cost/expense to fulfill life needs. In general, if someone had the higher income compared to the cost incurred, she/he economically has a better welfare level. In the normal context, income is the productive revenue gained from work activity. In this productive process, productive income is the gap from income compared to production cost incurred. Income is the result of sale so it is the function of sale price and production volume. Therefore, productive income is the function of production. In capture fisheries, production is the function of several important variables such as fish resources, capture season which is influenced by technology, and fisherman expertise. Fish resource is highly influences production, because it influences the abandoned stock of captureable fish, with any technology and expertise. Technology will influences the duration of capture. The better the technology, the capture duration will not be harmed by unfriendly season, so that capture season will be longer. Fisherman expertise will be influenced by knowledge on fish resource, strategic capture location, as well as knowledge on technology used. It will be highly dependent on personal experience. Fisheries cultivation will also influenced by a number of factors such as natural resources which is the function of technology. In addition, fisheries cultivation production is also the function of food, energy, seed and breed, and human resource. Natural resource will influence fisheries production activity, but when the applied technology is higher, the resource characteristic factor can be reduced. Conversely, food, energy and seed/breed and human resource are factors that are very crucial for cultivation production success. All factors influencing the production need cost to be incurred for production activity, so this cost will be highly influenced by the type and amount of input/factor used as well as the input price. Based on the argument, production variability becomes important to illustrate the welfare dynamic. On productive household level, in addition to expense for productive activity (business) there is also expense for household consumption activity, because household functioned as a producer as well as a consumer. This expense in general will be very influenced by household size, household composition, prices of the consumed goods, life style and time preference. In general, the bigger the household, the expense will be Final Report Page 17

28 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN higher. Household composition (old or young members) will also influence the expense. Prices of the consumed goods will directly influence household expense. The increase in the consumption goods price, even though the amount is constant, will increase expenses. Lifestyle will also significantly influence household expense. The higher the lifestyle, the higher household expense. Time preference will also influences expense. In household with a high now time preference, the expense tends to be high because it doesn t consider the need for saving for future expense. Comparison between income with household s total expense will resulted in a ratio as household terms of trade index. In general, when the index is higher, the welfare will be higher from the economic perspective. Frequently, in some analysis, production is assumed to be constant, so that business income will be illustrated from the price dynamic. The higher the price compared to a particular year (as the based year), the income is assumed to be higher. This income is the amount received by producer (fisherman and fish cultivator). Meanwhile, the amount of expense for production and to fulfill household needs is the amount to be paid by fisheries household. If it was assumed that the amount of input goods and consumption goods is constant, the dynamic of the amount that should be paid by fisheries household depends on dynamic of the price of goods used for production and consumption activities, so that the ratio of received goods price dynamic and paid goods price dynamic becomes the indicator to measure welfare from the economic perspective. Nevertheless, the behavior of relationship between price and production is also related. In fisheries, price will be affected by production dynamic. The price will be high especially when the production experiences significant obstacles, so frequently there are conditions when the production decreases or scarce, and the price will increases. Aggregately, this price increase is unnecessarily able to increase business income. Even though it is assumed that the production cost is constant, the price increase is not distributed to be business profit increase which in turn will become business income. If this condition occurred, with the expense perceived to be constant, welfare from economic perspective is unnecessarily increase even though there is price increase. The study framework for the analysis of fish cultivator and fisherman terms of trade (NTPi/NTN) in the formulation of background study of national RPJMN is presented in Figure 2.1. Final Report Page 18

29 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN Capture Fisheries Fish Price Cultivation Fisheries Fish Production Business revenue Business Profit Input Volume Input Price Production Cost Fisheries Household Income Fisheries Household Expense Ratio of Income per Expense (Terms of Trade) Economic Welfare Indicators Figure 1.1 Figure 2.1. Study framework for analysis of fish cultivator and fisherman terms of trade (NTPi/NTN) in the formulation of background study of national RPJMN Study Approach Framework The formulation of study approach framework should reflects the work stages which will be carried out to achieve the aim of this work. In general, the work stages of Marine and Fisheries RPJMN background study can be grouped into 3 (three) stages, namely: (1) Input, (2) Process, (3) Output. The study approach framework can be seen in Figure 2.2. a) Input In input stage, namely the initial identification, we will identifies fisherman terms of trade (NTN) and fish cultivator terms of trade (NTPi) index variability on national and provincial level in the last several years, identifies the issues and problems, and identifies national fisheries development policies. Final Report Page 19

30 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN (1) Identification of NTN and NTPi index variability on national and provincial level in the last several years NTN and NTPi index variability on national and provincial level in the last several years will be identified to gain knowledge about pattern and development as well as the suitability with the current factual condition. (2) Identification of issues and problems Identification of issues and problems related to fisherman and fish cultivator welfare level, fish capture and cultivation business activities, as well as other local and national environmental conditions which influence capture and cultivation fisheries business. (3) Identification of national fisheries development policies Identification of development policies, including review of developmental programs and policies related to capture and cultivation fisheries development and growth activities. The result of this review will be used as one of the basis in formulating indication for fisherman and fish cultivator welfare improvement and monitoring policies for intermediate term. b) Process In this stage, various data analysis will be conducted, such as: variability and pattern analysis on national and provincial NTN and NTPi index, decomposition analysis, family income analysis, business feasibility analysis, and gap analysis. Next, from the analysis result, the direction for fisherman and fish cultivator welfare improvement and monitoring policies for the next five years will be formulated. (1) NTN and NTPi index variability and pattern analysis This analysis is meant to illustrate the current status of NTN and NTPi index variability and pattern on national and provincial level, which includes: developmental tendency, dynamic pattern, and suitability level with the current factual condition. This analysis will be conducted quantitatively (with simple prediction method) and qualitatively (descriptive), both in the form of tabulation and graphic or figure. (2) Fisheries business feasibility analysis Business feasibility analysis is only conducted on the main or dominant fisheries business units. In principle, this feasibility analysis is conducted to see the production coast component structure and income result. This analysis will review business income analysis, income and cost balance analysis, payback period analysis and return of investment (ROI) analysis. Final Report Page 20

31 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN (3) Gap analysis Gap analysis is an analysis conducted descriptively to compare the ideal condition with the existing condition. This analysis is aimed to formulate policy indication needed to achieve the ideal condition, which in this case is to improve fisherman and fish cultivator welfare. (4) Path analysis Path analysis is used to calculate the direct and indirect effect of NTN and NTPi components. From the regression coefficient gained from this analysis, NTN and NTPi elasticity are then calculated on each components. c) Output In the output stage, we will conduct the formulation of policy and strategic plans needed for fisherman and fish cultivator life improvement in Indonesia for the next five years ( ). The policy formulation is compiled based on the approach from various factors analyzed in this study. Final Report Page 21

32 Fishermen Terms of Trade Achievement - Background Study of Marine and Fishery RPJMN INPUT PROCESS OUTPUT VARIABILITY AND NATIONAL AND PROVINCEIAL NTN & NTPi PATTERN IDENTIFICATION ISSUE AND PROBLEM IDENTIFICATION DATA ANALYSIS: (1) VARIABILITY & INDEX PREDICTION ANALYSIS (2) ELASTICITY ANALYSIS (PATH ANALYSIS) (3) BUSINESS ANALYSIS (4) GAP ANALYSIS (5) GROWTH RATE ANALYSYS POLICY ANALYSIS DATABASE AND INFORMATION FISHERMAN AND FISH CULTIVATOR LIFE IMPROVEMENT POLICY FORMULATION RPJMN NATIONAL FISHERIES DEVELOPMENT POLICY IDENTIFICATION Figure 2.2. Study Approach Framework Final Report Page 22

33 2.3 Data Collection Method Data used in this study consists of primary and secondary data. However, the majority of analyses conducted are based on secondary data. Primary data are gathered by conducting field observation or review on representatives regions, interviews with fishermen and fish cultivators, as well as focus group discussion (FGD). Observation activity was done in Central Java, Yogyakarta and East Java. Meanwhile, FGD was done in Semarang, with different participants between fisherman and fish cultivator FGDs. FGD participants for fisherman group are as follow: a. Fishing Research Center (Balai Besar Penelitian Penangkapan Ikan BBPPPI) Semarang b. Pekalongan Archipelago Fishing Port c. Brondong Archipelago Fishing Port d. Brondong Archipelago Fishing Port e. Pekalongan and Brondong s Fisherman Figures f. Village Cooperative Center of Mina Baruna, Central Java g. Mino Pekalongan Village Cooperative, Sarono Mino Junowo Village Cooperative, and Mina Brondong Village Cooperative FGD participants for fish cultivation group are as follow. a. Brackishwater Cultivation Development Center (BBPBAP) Jepara b. Central Java Marine and Fisheries Office c. Boyolali District Fisheries Office d. Boyolali Lele Village Representatives e. Semarang Pond Farmer Representative f. Pekalongan District Marine and Fisheries Office The secondary data are gathered through literature review on relevant documents from authoritative institutions such as Ministry of Marine and Fisheries (KKP), Statistics Indonesia (BPS), Universities and other institutions. 2.4 Analysis Method Simple Prediction Analysis Simple prediction analysis is conducted to identify the pattern and development of Fisherman Terms of Trade (NTN) and Fish Cultivator Terms of Trade (NTPi), both on national and provincial level in particular time period. The analysis is carried out quantitatively using time series analysis approach, based on time series data. Final Report Page 23

34 Time series economic data is generally varied due to several factors such as secular trend, seasonal variation, irregular or random influence, and cyclical variation. Considering the limitation and data analysis goal, time series analysis is carried out with trend projection approach with simple linear regression technique. Regression breakdown is done with ordinary least square (OLS) technique application. Regression model with assumption of constant absolute amount change per period of time is as follow. S t S 0 bt Description: St = time series prediction value on t period S0 i = value with time series on based period (t=0) or regression intercept b = absolute value of growth rate per period (t) t = time series period (monthly) Business Analysis Component used in the business analysis consists of production cost, business income and revenue gained from fisheries business. In the business analysis, we also conducted business revenue analysis, income and cost balance analysis, payback period analysis, as well as Return of Investment (ROI) analysis (Hermanto, 1989). Business analysis conducted in this study is business revenue analysis. Revenue analysis is typically used to measure whether the current business activity succeed or not. Business revenue analysis is aimed to know the profit gained from a business activity (Djamin, 1984). Business revenue calculation is carried out using the following equation: = TR TC Description : = profit TR = total revenue TC = total cost With the criteria: If TR > TC, business activity gains profit If TR < TC, business activity does not gain profit If TR = TC, business activity is on the breakeven point or the business does not experience profit or loss. Final Report Page 24

35 Performance Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Gap Analysis In business and economy field, gap analysis is a tool to assess the sources which enable a particular organization to compare the current performance and ideal performance. Basically, gap analysis will ask about the current position and the expected ideal position. If an organization is on the condition of not optimally using the available resources or not invest and refine the technology, including system, the organization is possibly has production or performance level below the potential. The main goal of gap analysis is to identify the gap between optimum allocation and input-input integration with the current allocation level. It will help organization to point the areas with rooms for improvement. In this study, gap analysis is used to analyze policy gap in the effort to improve household revenue value and to reduce the expense cost. It is expected that this analysis will find the direction for the appropriate fisheries household welfare improvement. Gap analysis can be illustrated as seen in Figure Expected/Ideal Level Current Level Time Figure Gap Analysis Path Analysis Path analysis is used to know the effect of index component variable which is received and paid by fisherman and fish cultivator on NTN and NTPi. Result from this path analysis is a regression coefficient, which then used to calculate NTN elasticity on each variable. Elasticity is useful to measure the magnitude of effect (both direct and indirect) from each variable change on fisherman terms of trade. Thus, to increase fisherman and fish cultivator terms of trade, modification can be made on variables with high elasticity. The elasticity formula used is as follows: Final Report Page 25

36 E y x xi X i. i Description: Ex i = price index elasticity from x i X i = price index of variable x1, x17 y = NTN or NTPI y x i y is the regression coefficient for each variable x on NTN Component variables of NTN and NTPi are presented in Table 2.1. Because the components of received index and paid index are numerous, the components are grouped according to BPS classification. For received index, for dominant types of fish are selected for NTN and NTPi. The prices of dominant types of fish which compiles IT of NTN and NTPi gained is the fish monthly price from January 2008 to December Therefore, to calculate fishes price index the price for Januari 2008 is used as the based year calculation. The path used in this analysis is in accordance with BPS calculation, as summarized in Figure Final Report Page 26

37 X1 X2 X3 Received Index X4 X5 X6 X7 X8 X9 Household Consumption NTN/NTPi X10 X11 Received Index X12 X13 X14 X15 X16 Production Cost and Capital Goods Gain X17 Figure Path analysis of factors influencing NTN and NTPi Description: Variable Fisherman Fish Cultivator X1 Shipjack Tuna Milfish X2 Mackerel Catfish X3 Tuna Tilapia X4 Prawn Patin X5 Food Material Food Material X6 Processed Food Processed Food X7 Residence Residence X8 Apparel Apparel X9 Health Health X10 Education, Recreation, and Sport Education, Recreation, and Sport X11 Transportation and Communication Transportation and Communication X12 Rent and other expenses Seed/Breed X13 Transportation Fertilizer, Medicine,and Fish Feed X14 Capital Goods Rent and other expenses X15 Salary Transportation X16 - Capital Goods X17 - Salary Final Report Page 27

38 III. FISHERIES RESOURCE AND BUSINESS CHARACTERISTICS 3.1 Capture Fisheries Fish Resource Capture fisheries production sourced from fish capturing on the sea and public waters. In period, capture fisheries production volume increased averagely by 2.93% per year, namely in 2011 with tons to tons in Capture fisheries production volume at the sea on that period increased averagely by 3.06% per year, namely from tons in 2001 to be tons in Meanwhile, capture fisheries production volume at public waters experienced increase by 1.97% per year, namely in 2001 with tons to be tons in 2011 (Indonesian Capture Fisheries Statistics, 2011). Capture fisheries production in Indonesia is mostly (94%) contributed from fish capturing activity at the sea. Thus, the characteristic of resource and capture fisheries business described in this study is focused on national capture fisheries activity conducted at the sea. Capture fisheries resource in Indonesia consists of various types of fish. In general, capture fisheries resource is categorized into 7 groups namely big pelagic, small pelagic, big demersal, small demersal, crustacean, mollusk, and other fishing resource. In 2011, fish group with the most production is small pelagic, with production of tons. Meanwhile, fish group with the least production in 2011 is mollusk with tons. Respectively, capture fisheries productions in 2011 are: big pelagic is tons; small demersal is tons, big demersal is tons; crustacean is tons; and other fisheries resource is tons (Figure 3.1.1). Final Report Page 28

39 (Source: Indonesian Capture Fisheries Statistic, 2011) Figure Fish production according to fish group in Indonesia in 2011 Big pelagic fishes found in Indonesia consist of frigate tuna, little tuna, skipjack tuna, albacore, yellowfin tuna, southern bluefin tuna, big eye tuna, longtail tuna, black marlin, blue marlin, Indo-pacific blue marlin, swordfish, sailfish, common dolphin fish, striped bonito, spotted chub mackerel, Spanish mackerel, king mackerel, great barracuda, pickhandle barracuda, thresher shark, spinner shark, mackerel shark, scalloped hammerhead shark, longnose velvet dogfish. In Figure 3.1.2, it shows that big pelagic group with the most production in 2011 is skipjack tuna, with production tons. Meanwhile, big pelagic fish with the least production is blue marlin. Blue marlin fish production in Indonesia in 2011 is 153 tons. Small pelagic fish group has the most type of fish than other groups. There are 30 types of fish in small pelagic group, namely garfish, redbelly yellowtail fusilier, black pomfret, silver pomfret, bigeye scad, trevally, Indian scad, rainbow runner, torpedo scad, dorab wolf-herring, blue and gold fusilier, chacunda gizzard shad, tille trevally, spotted sardinella, rainbow sardine, sardine, Bali sardinella, hilsha shad, anchovy, flying fish, garfish, Singapore silver biddy, mangrove mullets, bullet tuna, mackerel, Indian mackerel, terapon, and pony fish. Among the fish types, flying fish is pelagic fish with the most production in Flying fish production in 2011 is tons. Meanwhile, hilsha shad is the one with the least production in 2011, with production of tons (Figure 3.1.3).. Final Report Page 29

40 JENIS IKAN Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Cucut Botol Cucut Martil/ Capingan Mako Cucut Lanyam Cucut Tikus/ Cucut Monyet Senuk Alu-Alu/ Manggila/Pucul Tenggiri Papan Tenggiri Slengseng Kenyar Lemadang Ikan Layaran Ikan Pedang Setuhuk Loreng Setuhuk Biru Setuhuk Hitam Tongkol abu-abu Tuna mata besar Tuna sirip biru selatan Madidihang Albakora Cakalang Tongkol komo Tongkol krai (Source: indonesian Capture Fisheries Statistic, 2011) PRODUKSI (TON) Figure Big pelagic production in Indonesia in 2011 Small demersal group in Indonesia consists of Indian halibut, barramundi, lizardfish, tongue sole, emperor, javelin, sweetlips, nomei, Napoleon, goldenbanded jobfish, sulphur goatfish, yellow-stripe goatfish, Indian goatfish, threadfin bream, four finger threadfin, threadfin, red snapper, white-spotted spinefoot, orange-spotted spinefoot, barhead spinefoot, and silver sillago. Red snapper has the most production in 2011 and sweetlips has the the least production in 2011 for small demersal group. In 2011, red snapper production is tons and sweetlips production is 942 tons (Figure 3.1.4). Final Report Page 30

41 JENIS IKAN Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Peperek Layur Kerong-Kerong Banyar Kembung Lisong Belanak Kapas-Kapas Julung-Julung Ikan Terbang Teri Terubuk Lemuru Tembang Japuh Siro Kuwe Selanget Lolosi Biru Golok-Golok Daun Bambu/ Talang-Talang Tetengkek Sunglir Layang Selar Bentong Bawal Putih Bawal Hitam Ekor Kuning/ Pisang-Pisang Cendro (Source: Indonesian Capture Fisheries Statistic, 2011) Figure Small pelagic production in Indonesia in 2011 Giant catfish, spotted-finned bulleye, croacker, blue-lined seabass, honeycomb grouper, estuary rockrod, sawfish, stingray, devilray, eagleray, shovelnose ray, and whitespotted wedgefish are fish types in the big demersal group. In 2011, giant catfish has the most production while sawfish has the least production. Giant fish production is tons and sawfish production is 67 tons (Figure 3.1.5) PRODUKSI (TON) Final Report Page 31

42 JENIS IKAN Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Rejung Beronang Kuning Ikan Beronang Beronang Lingkis Kakap Merah/ Bambangan Swanggi/ Mata Besar Kuro/Senangin Kurau Kurisi Biji Nangka Karang Biji Nangka Kuniran Pinjalo Ikan Napoleon Ikan Nomei/Lomei Ikan Gaji Gerot-Gerot Lencam Ikan Lidah Beloso/Buntut Kerbo Kakap Putih Ikan Sebelah PRODUKSI (TON) (Source: Indonesian Capture Fisheries Statistic, 2011) Figure Small demersal production in Indonesia in 2011 Crustacean group consists of endeavor prawn, banana prawn, tiger prawn, spiny lobster, mud crab, swimming crab. Among crustace group, banana prawn is has the most production in 2011, with tons. Meanwhile, king prawn has the least production in 2011, with tons (Figure 3.1.6). Mollusk is a water animal group consisting of blood cockles, green mussel, common squid, octopus, pearl oyster, scallop, cuttle fish, top shell, clam and pacific oyster. In 2011, squid has the most production with tons while topshell has the least production with 85 tons (Figure 3.1.7). Final Report Page 32

43 JENIS IKAN JENIS IKAN Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Pari Kekeh Pari Hidung Sekop Pari Burung Pari Kelelawar Pari Kembang Ikan Gergaji Kerapu Sunu Kerapu Lumpur Kerapu Balong Kerapu Bebek Kerapu Karang Gulamah/ Tigawaja Serinding Tembakau Manyung PRODUKSI (TON) (Source: Indonesian Capture Fisheries Statistic, 2011) Figure Big demersal production in Indonesia in 2011 Rajungan Kepiting Udang Lainnya Udang Barong/ Udang Karang Udang Windu Udang Ratu/Raja Udang Krosok Udang Putih/ Jerbung Udang Dogol PRODUKSI (TON) (Source: Indonesian Capture Fisheries Statistic, 2011) Figure Crustacean production in Indonesia in 2011 Final Report Page 33

44 JENIS IKAN Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN From economic viewpoint, fish resource produced from capture fisheries is mainly categorized into categories, namely: fish commodity with high economic value, medium economic value, and low economic value. Instances of fish commodity with high economic value are: tuna, Spanish mackerel, grouper, napoleon, snapper, ribbon fish, anchovy, prawn, lobster, etc. Meanwhile, instances of fish commodity with medium economic value are: shipjack tuna, mackerel tuna, mackerel scad, mackerel, trevally, pompano, pomfret, white-spotted spinefoot, etc. And for instances of fish commodity with low economic value are: pony fish, threadfin bream, sulphur goatfish, croacker, sardinella, etc. Tiram Remis Lola/ Susu Bundar Sotong Simping Kerang Mutiara/ Tapis-Tapis Gurita Cumi-cumi Kerang Hijau Kerang Darah PRODUKSI (TON) (Source: Indonesian Capture Fisheries Statistic, 2011) Figure Mollusk production in Indonesia in 2011 According to provinces, 5 (five) major contributors of capture fisheries production in 2011 are Maluku with 10.62% ( tons), North Sumatera with 8.66% ( tons), East Java with 6.78% ( tons), Papua with 5.04% ( tons) and Central Java with 4.71% ( tons). The complete list of capture fisheries production according to provinces in 2011 is presented in Table Final Report Page 34

45 Table Capture fisheries production according to provinces in 2011 Province Total Production (tons) Production contribution(%) Aceh ,69 North Sumatera ,66 West Sumatera ,68 Riau ,69 Riau Archipelago ,95 Jambi ,84 South Sumatera ,82 Bangka Belitung Archipelago ,60 Bengkulu ,75 Lampung ,89 Banten ,08 Jakarta ,37 West Java ,48 Central Java ,71 DI Yogyakarta ,07 East Java ,78 Bali ,88 West Nusa Tenggara ,62 East Nusa Tenggara ,91 West Kalimantan ,76 Central Kalimantan ,87 South Kalimantan ,16 East Kalimantan ,93 South Sulawesi ,09 West Sulawesi ,36 Southeastern Sulawesi ,25 North Sulawesi ,31 Gorontalo ,42 Central Sulawesi ,73 Maluku ,62 North Maluku ,81 Papua ,04 West Papua ,19 Total (Source: Indonesian Capture Fisheries Statistic, 2011) Another important characteristic of capture fisheries production in Indonesia is its seasonal nature, though the annual trend tends to rise. Besides the target fish type and Final Report Page 35

46 nature, fish capturing seasonal pattern in Indonesia is also determined by weather condition or windy season. Considering that Indonesian fishermen mostly use small boats and limited technologies, they only do their activities if supported by the weather. In general, fish capturing pattern in Indonesia can be represented by its quarterly production fluctuation pattern as presented in Figure Figure Quarterly production fluctuation pattern of capture fisheries in Indonesia for period In general, based on geographical condition, fish capturing seasonal pattern represented by the production fluctuation pattern can be divided into 3 patterns, which is Indonesian west region capturing season pattern (i.e. Sumatera and Java), Indonesian central region (i.e. Kalimantan, Bali-Nusa Tenggara, and Sulawesi), and Indonesian east region (i.e. Maluku-Papua). Production fluctuation pattern chart which represents fish capturing season for every regional group can be seen in Figure to Figure Final Report Page 36

47 Figure Fisheries quarterly production fluctuation pattern in Indonesian west region in period Figure Fisheries quarterly production fluctuation pattern in Indonesian central region in period Final Report Page 37

48 Figure Fisheries quarterly production fluctuation pattern in Indonesian east region in period Fisherman Fisherman in Indonesia can be categorized into 3, namely fulltime fisherman, major part-time fisherman, and minor part-time fisherman. Fulltime fisherman is a fisherman who spends all of his/her work time to conduct fish capturing activities. Major part-time fisherman is a fisherman who spends most of his/her work time to conduct fish capturing activities and little of his/her work time to do other work. Minor part-time fisherman is a fisherman who spends his/her free time to conduct fish capturing activities in order to fulfill life needs. The number of fishermen in experienced declines averagely 0.99% per year, from fishermen in 2001 to fishermen in The number of fishermen in 2005 is the lowest number in that particular period, with fishermen. Meanwhile, the highest number of fishermen is in 2003 with fishermen (Indonesian Capture Fisheries Statistics, 2011). During the last ten years, the number of fishermen is highly fluctuating. It is caused by changes in fishermen number estimation method, which is from Fisheries Household (FH)/Fisheries Company (FC) approach to be estimation according to the main fish capturing tools as well as fish capturing boat size, since Marine fishermen in the same particular period declines averagely by 0.23% per year, namely from fishermen in 2001 to fishermen in 2011; it is also Final Report Page 38

49 the case with public waters fishermen which declines averagely by 2.85% per year. The number of marine fishermen in 2005 is the lowest number in that particular period, i.e fishermen, while the highest number of marine fishermen is in 2003 with fishermen (Indonesian Capture Fisheries Statistics, 2011). The majority of marine fishermen is fulltime fisherman which all of their work time is are spent to conduct fish capturing activities. The number of marine fishermen for fulltime fisherman category declines averagely by 0.61% per year. Meanwhile, the number of major part-time and minor part-time fisherman declines averagely by 0.50% per year and 1.45% per year, respectively (Indonesian Capture Fisheries Statistics, 2011). In 2011, 5 (five) main provinces in Indonesia which have the highest number of marine fishermen, respectively, are East Java with 12.87% ( fishermen), North Sumatera with 7.18% ( fishermen), South Sulawesi with 6.05% ( fishermen), Central Java with 4.57% ( fishermen), and Maluku with 4.37% ( fishermen). The complete list on the number of fishermen in Indonesia according to the category and province in 2011 can be seen in Table In addition, it is also known that the majority or 52.24% of fishermen lives in Indonesian west region, namely in Java with fishermen (26.23%) and in Sumatera with fishermen (26.01%). Based on the category, fulltime fisherman is mostly found in East Java ( fishermen), North Sumatera ( fishermen), Central Java ( fishermen), Maluku ( fishermen), and South Sulawesi ( fishermen). Meanwhile, the highest number of major part-time fisherman is found in South Sulawesi with fishermen. Final Report Page 39

50 Table The number of fishermen in Indonesia according to the category and province in 2011 Province Provinsi Category Kategori nelayan Jumlah Amount Kontribusi Contribut Nelayan sambilan Nelayan sambilan Nelayan Nelayan penuh Major parttime Minor parttime (people) ion (%) Full-time utama tambahan (orang) JUMLAH ,00% SUMATERA ,01% ACEH ,17% SUMATERA UTARA ,18% SUMATERA BARAT ,42% RIAU ,88% KEPULAUAN RIAU ,41% JAMBI ,66% SUMATERA SELATAN ,49% BANGKA BELITUNG ,47% BENGKULU ,73% LAMPUNG ,61% JAWA ,23% DKI JAKARTA ,02% BANTEN ,43% JAWA BARAT ,24% JAWA TENGAH ,57% D.I. YOGYAKARTA ,11% JAWA TIMUR ,87% BALI - NUSATENGGARA ,28% BALI ,34% NUSA TENGGARA BARAT ,90% NUSA TENGGARA TIMUR ,04% KALIMANTAN ,27% KALIMANTAN BARAT ,72% KALIMANTAN TENGAH ,22% KALIMANTAN SELATAN ,27% KALIMATAN TIMUR ,06% SULAWESI ,46% SULAWESI UTARA ,76% GORONTALO ,06% SULAWESI TENGAH ,60% SULAWESI BARAT ,62% SULAWESI SELATAN ,05% SULAWESI TENGGARA ,36% MALUKU - PAPUA ,74% MALUKU ,37% MALUKU UTARA ,68% PAPUA ,36% PAPUA BARAT ,34% (Source: Indonesian Capture Fisheries Statistic, 2011) According to asset ownership, fishermen in general can be divided into 2 groups, namely owner fisherman (owner) and worker fishermen. In Indonesia, salary for worker fishermen is based on profit sharing system. Every region has its own profit sharing system, where in one region the ratio between owner and worker is 60 : 40 from net revenue, and in another region the ratio could be of 50 : 50, and sometimes 40 : 60 from net revenue. Final Report Page 40

51 Unit Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Capture Fisheries Business Scale Capture fisheries business scale variability can be seen from capture fisheries household (FH) business scale variability. Capture fisheries household (FH) is defined as a household where one or more of its members work as fishermen. The exact number of capture FH in Indonesia is not known and recorded. In Fisheries Statistic published by Ministry of Marine and Fisheries, fisheries household is merged with fishing company. What it meant by fishing company in fisheries statistic is legal based economic unit which conducts fish/water animal/water plant capturing activities with the goal to partially/fully sell the products. In this data, a big boat owner who has several boat crews is considered one household. Figure shows the development of capture fisheries household/fishing company based on the boat type used Tanpa Without perahu boat Perahu Unmotored tanpa boat motor Perahu Outboard motor motor tempel Kapal Motor motor boat Total Figure Development of capture fisheries household/fishing company numbers From Figure , there is a decline in FH s number during the period of In 2007, the number of capture FH is units and declines to be units in 2011 or declines averagely by 1 percent per year. The greatest decline occurred in 2009 due to the decline in FH without boat and FH with unmotored boat. In 2011, the number of FH increased by 3.4% due to the increase of FH with outboard motor boat and FH with motor boat. This decline of FH without boat or with unmotored boat and increase of FH with outboard motor boat and motor boat shows a technological development by business operators (fisherman and fishing company). Final Report Page 41

52 Capture fisheries FH consists of marine capture fisheries FH and public water capture fisheries FH. In 2011, the number of marine capture fisheries FH is units and public water fisheries FH is units. Table shows the number of marine and public water capture fisheries according to the business scale. Table The Number of Capture Fisheries Household (FH) According to Business Scale in 2011 Business Scale Marine Public Waters Total Without boat Unmotored boats: Jukung Small board Medium board Big board Outboard motor boats: Motor boats: < 5 GT GT GT GT GT GT GT GT GT GT GT Total In total, the majority of capture FH is FH with unmotored boats. However, FH on marine fish capturing is mostly use boat with outboard motor, while fish capturing in public waters mostly without boat. Typically, public waters fishermen only use net or rod to capture fish at rivers or other public waters (Figure ). Final Report Page 42

53 30-50 GT; ,0 GT; 6.873, GT; , GT; , GT; 482,0 < 5 GT; , GT; 298, GT; 126, GT; 121, GT; 88, GT; 87,0 Tanpa perahu; ,0 Perahu tanpa motor; ,0 Perahu Motor Tempel; ,0 a. Marine Fishing Perahu Motor Motor Tempel 12% Outboard Unmotored Perahu tanpa Boat motor 42% Kapal Motor Motor boat 1% Tanpa perahu 45% Without boat b. Public Waters Fishing Figure Percentage of Capture FH based on Business Scale Based on regional distribution (provinces), fish capture FHs are mostly found in East Java with FHs consist of units of marine capture FHs and units of public waters FHs. Provinces with the most fish capture FH, in order, are: South Sumatera, Central Java, East Kalimantan, South Kalimantan, Papua, North Maluku, West Java and North Sumatera. East Java province has the most marine capture FH compared to other provinces. Other provinces with the most marine capture FH are Maluku with FHs and Central Sulawesi with units. They are followed by North Sumatera, South Sulawesi, East Kalimantan, Southeastern Sulawesi, and Riau Archipelago. Meanwhile, Final Report Page 43

54 provinces with the least marine capture FHs are Yogyakarta, with units and North Maluku with units. North Maluku province does not have fish capture FH in public waters, thus the province is also become a province with the least fish capture FH (Table 3.1.4). Table The number of Fish Capturing Fisheries Household (FH) According to Provinces in 2007 and 2010 No. Province Marine Public Waters Total 1. Aceh North Sumatera West Sumatera Riau Riau Archipelago Jambi South Sumatera Bangka Belitung Archipelago 9. Bengkulu Lampung Banten Jakarta West Java Central Java DI Yogyakarta East Java Bali West Nusa Tenggara East Nusa Tenggara West Kalimantan Central Kalimantan South Kalimantan East Kalimantan South Sulawesi West Sulawesi Southeastern Sulawesi North Sulawesi Gorontalo Central Sulawesi Maluku North Maluku Papua West Papua Jumlah (Source: Ministry of Marine and Fisheries & Statistic Agency 2011) Final Report Page 44

55 Meanwhile, fish capturing FHs in public waters are mostly found in South Sumatera with units, followed by South Kalimantan, Central Java, East Java, West Java and East Kalimantan. Fishing activities in public waters mostly done by fishermen household in South Sumatera are fish capturing at rivers and the existence of swamp areas in every wet season becomes one of the biggest water resource and can be utilized by South Sumateran community to capture fish. For marine fishing, the number of Fisheries Household (FH)/Fishing Company (FC) in period increased averagely by 0.86% per year, namely units in 2001 to units in The number of FH/FC using outboard motor has the most increase, namely by 7.30% per year. FH/FC using motor boat increases averagely by 5.59% per year. Meanwhile, FH without boat and FH/FC using unmotored boat decrease averagely by 1.60% and 1.53% per year (Indonesian Capture Fisheries Statistics, 2011). In the same period of time, marine the number of FH/FC increases averagely by 1.68% per year, namely from units in 2011 to units in Five provinces in Indonesia with the greatest number of marine capture FH/FC in 2011 are East Java with 10.02% ( fishermen), Maluku with 7.48% ( fishermen), Central Sulawesi with 6.88% ( fishermen), North Sulawesi with 5.60% ( fishermen) and Papua with 5.41% ( fishermen). The complete list on the number of marine capture FH/FC in Indonesia according to provinces in 2011 can be seen in Table Table The Number of Marine Capture FH/FC in Indonesia according to provinces in Provinces FH/FC (unit) Contribution (%) Aceh ,88% North Sumatera ,60% West Sumatera ,61% Riau ,34% Riau Archipelago ,31% Jambi ,45% South Sumatera ,19% Bangka Belitung Archipelago ,94% Bengkulu ,38% Lampung ,29% Banten ,56% Jakarta ,98% West Java ,29% Final Report Page 45

56 Central Java ,69% DI Yogyakarta ,19% East Java ,02% Bali ,68% West Nusa Tenggara ,45% East Nusa Tenggara ,59% West Kalimantan ,02% Central Kalimantan ,08% South Kalimantan ,56% East Kalimantan ,65% South Sulawesi ,16% West Sulawesi ,31% Southeastern Sulawesi ,88% North Sulawesi ,38% Gorontalo ,50% Central Sulawesi ,38% Maluku ,48% North Maluku ,49% Papua ,41% West Papua ,26% (Source: Indonesian Capture Fisheries Statistic, 2011) The development of marine capture FH/FC according to business scale is as follows: the number of marine FH/FC without boat experienced -2.45% decrease per year (from units in 2001 to units in 2011), the number of marine FH/FC with unmotored boat experienced -3.26% decrease per year (from units in 2001 to units in 2011); the number of marine FH/FC using outboard motor increased by 6.62% per year (from units in 2001 to units in 2011); and the number of marine FH/FC using motor boat increased by 5.53% per year (from units in 2001 to units in 2011). Meanwhile, the details for marine capture FH/FC according to business scale and province in 2011 can be seen in Table Based on the table, capture fisheries business in Indonesia is generally experienced shifts of technology from the traditional tools to a relatively advanced technology, which is indicated by the decrease of FH/FC without boat and unmotored boat, and the increase of capture FH/FC with outboard motor and motor boat business scale. Despite the advancement of technology, the composition of capture fisheries in Indonesia is still relatively constant or unchanged, both for business with outboard motor and motor boat, which is still dominated by small business scale characterized by boat size below 5 GT. Final Report Page 46

57 3.1.4 Capture Fisheries Fleet Variability 1) Fishing boat Fishing boats in Indonesia are categorized into 3 groups, namely unmotored boat, outboard motor, and motor boat. Unmotored boats consist of jukung and board boat. Meanwhile, motor boats are divided based on the boat size, namely 5 GT, 5-10 GT, GT, GT, GT, GT, GT, GT, GT, GT >1000 GT. In the period of , the amount of fishing boats in Indonesia increases averagely by 2.45% per year, namely from boats in 2001 to boats in The greatest increase of fishing boats occurred for outboard motor, namely 7.74% per year (Indonesian Capture Fisheries Statistic, 2011). Final Report Page 47

58 Table The Number of Capture FH/FC in Indonesia according to Business Scale and Provinces in 2011 Provinsi Tanpa perahu (unit) (Source: Indonesian Capture Fisheries Statistic, 2011) Kategori besarnya usaha Dengan perahu tanpa motor Dengan Dengan kapal motor (unit) Perahu papan (unit) Ukuran kapal motor Jukung motor tempel (unit) Kecil Sedang Besar (unit) < 5 GT 5-10 GT GT GT GT GT GT GT GT GT > 1000 GT JUMLAH SUMATERA ACEH SUMATERA UTARA SUMATERA BARAT RIAU KEPULAUAN RIAU JAMBI SUMATERA SELATAN BANGKA BELITUNG BENGKULU LAMPUNG JAWA DKI JAKARTA BANTEN JAWA BARAT JAWA TENGAH D.I. YOGYAKARTA JAWA TIMUR BALI - NUSATENGGARA BALI NUSA TENGGARA BARAT NUSA TENGGARA TIMUR KALIMANTAN KALIMANTAN BARAT KALIMANTAN TENGAH KALIMANTAN SELATAN KALIMATAN TIMUR SULAWESI SULAWESI UTARA GORONTALO SULAWESI TENGAH SULAWESI BARAT SULAWESI SELATAN SULAWESI TENGGARA MALUKU - PAPUA MALUKU MALUKU UTARA PAPUA PAPUA BARAT Final Report Page 48

59 Marine fishing boats in that particular period increased by 2.30% per year, namely from boats in 2011 to boats in The number of outboard motors and motor boats respectively increases by 6.89% and 5.91% per year, while the number of unmotored boats decreases by 3.12% per year. Based on the boat size and category, the number of GT motor boats has the greatest increase with 19.01% per year. Followed by GT motorboats, GT motorboats and outboard motors, which increases 11.14%, 8.70%, and 6.89% per year. Meanwhile, the number of board boats has the greatest decrease with 3.64% per year (Indonesian Capture Fisheries Statistics, 2011). In 2011, 5 (five) provinces with the greatest number of fishing boats are East Java with 10.19% ( units), Maluku with 8.04% ( units), Central Sulawesi with 6.78% ( units), North Sumatera with 6.65% ( units) and South Sulawesi with 5.75% ( units). The complete list on the number of fishing boats in Indonesia according to boat category and size, in addition to category and province, in 2011 can be seen in Table Based on boat category, provinces with the greatest amount of motor boats are East Java ( units), North Sumatera ( units), East Kalimantan ( units), South Sulawesi ( units) and South Kalimantan ( units). Meanwhile, the greatest number of outboard motors can be found in East Java ( units), Central Java ( units), Central Sulawesi ( units), South Sulawesi ( units) and Tenggara Sulawesi ( units). For unmotored boat category, the greatest number can be found in Maluku ( units), Papua ( units), Central Sulawesi ( units), Riau Archipelago (9.860 units) ad North Sumatera (8.701 units). Final Report Page 49

60 Table The number of fishing boats in Indonesia according to category and province in 2011 Provinsi Perahu tanpa motor (unit) Kategori kapal penangkap ikan Motor tempel (unit) Kapal motor (unit) Total Kapal (unit) Kontribusi (%) JUMLAH ,00% SUMATERA ,91% ACEH ,68% SUMATERA UTARA ,65% SUMATERA BARAT ,48% RIAU ,00% KEPULAUAN RIAU ,61% JAMBI ,45% SUMATERA SELATAN ,19% BANGKA BELITUNG ,84% BENGKULU ,61% LAMPUNG ,41% JAWA ,23% DKI JAKARTA ,90% BANTEN ,14% JAWA BARAT ,94% JAWA TENGAH ,00% D.I. YOGYAKARTA ,08% JAWA TIMUR ,19% BALI - NUSATENGGARA ,01% BALI ,57% NUSA TENGGARA BARAT ,32% NUSA TENGGARA TIMUR ,12% KALIMANTAN ,85% KALIMANTAN BARAT ,60% KALIMANTAN TENGAH ,06% KALIMANTAN SELATAN ,32% KALIMATAN TIMUR ,88% SULAWESI ,13% SULAWESI UTARA ,68% GORONTALO ,43% SULAWESI TENGAH ,78% SULAWESI BARAT ,54% SULAWESI SELATAN ,75% SULAWESI TENGGARA ,94% MALUKU - PAPUA ,86% MALUKU ,04% MALUKU UTARA ,50% PAPUA ,59% PAPUA BARAT ,74% (Source: Indonesian Capture Fisheries Statistic, 2011) Final Report Page 50

61 Table The number of marine fishing boats in Indonesia according to province, motor category and size, in 2011 Provinsi Kategori kapal penangkap ikan Perahu tanpa motor (unit) Kapal motor (unit) Perahu papan Motor tempel Ukuran kapal motor Jukung (unit) Kecil Sedang Besar < 5 GT 5-10 GT GT GT GT GT GT GT GT GT > 1000 GT JUMLAH SUMATERA ACEH SUMATERA UTARA SUMATERA BARAT RIAU KEPULAUAN RIAU JAMBI SUMATERA SELATAN BANGKA BELITUNG BENGKULU LAMPUNG JAWA DKI JAKARTA BANTEN JAWA BARAT JAWA TENGAH D.I. YOGYAKARTA JAWA TIMUR BALI - NUSATENGGARA BALI NUSA TENGGARA BARAT NUSA TENGGARA TIMUR KALIMANTAN KALIMANTAN BARAT KALIMANTAN TENGAH KALIMANTAN SELATAN KALIMATAN TIMUR SULAWESI SULAWESI UTARA GORONTALO SULAWESI TENGAH SULAWESI BARAT SULAWESI SELATAN SULAWESI TENGGARA MALUKU - PAPUA MALUKU MALUKU UTARA PAPUA PAPUA BARAT (Source: Indonesian Capture Fisheries Statistic, 2011) Final Report Page 51

62 2) Fishing Gears Indonesian capture fish statistics classified fishing gears into 9 major categories, namely drag seine, pocket seine, purse seine, gill nets, lift nets, hook, trap, collectors and gears, and miscellaneous tools. The number of fishing gears in Indonesia during period is generally increased by 0.74% per year, namely from units in 2001 to units in In the same period, marine fishing gears increased by 3.13% per year, while public waters fishing gears decreased by 1.80% per year (Indonesian Capture Fisheries Statistics, 2011). Most of marine fishing gears experiences increase, except for fork and spear types, other hooks, and long lines other than tuna long lines each decreases by 5.23% per year, 4.33% per year, and 2.99% per year. Meanwhile, the greatest increase occurred for single prawn drag seine, which increased by % per year. The types of other fishing gears which also increased greatly are other lift nets, fishtraps, skipjack pole and line, and tuna long lines, with 37.34% per year, 33.90% per year, 28.65% per year, 26.20% per year and 21.77% per year (Indonesian Capture Fisheries Statistics, 2011). In 2011, quantitatively, fishing gears that are mostly used by capture fisheries fishermen in Indonesia is hooks (40.21%) and gill nets (28.27%). The numbers of each fishing gear types are units of hooks and units of gill nets. Meanwhile, fishing gears that are least used by Indonesian fishermen are drag seines with units or 1.79% from total of fishing gears used. The complete list of fishing gears in Indonesia according to the types and provinces can be seen in Table Based on the regional distribution, province with the most number of fishing gears are East Java with 13.95% ( units), Maluku with 8.80% ( units), Central Sulawesi with 7.07% ( units), Bangka Belitung with 6.29% ( units) and Tenggara Sulawesi with 5.99% ( units)). Final Report Page 52

63 Table The number of marine fishing gears according to types and provinces in 2011 Provinsi Pukat tarik (unit) Pukat kantong (unit) Pukat cincin (unit) Jaring Insang (unit) Jaring Angkat (unit) JUMLAH ,00% SUMATERA ,26% ACEH ,59% SUMATERA UTARA ,70% SUMATERA BARAT ,32% RIAU ,63% KEPULAUAN RIAU ,70% JAMBI ,29% SUMATERA SELATAN ,73% BANGKA BELITUNG ,29% BENGKULU ,08% LAMPUNG ,94% JAWA ,09% DKI JAKARTA ,13% BANTEN ,94% JAWA BARAT ,62% JAWA TENGAH ,34% D.I. YOGYAKARTA ,11% JAWA TIMUR ,95% BALI - NUSATENGGARA ,97% BALI ,98% NUSA TENGGARA BARAT ,52% NUSA TENGGARA TIMUR ,47% KALIMANTAN ,81% KALIMANTAN BARAT ,23% KALIMANTAN TENGAH ,09% KALIMANTAN SELATAN ,40% KALIMATAN TIMUR ,09% SULAWESI ,82% SULAWESI UTARA ,49% GORONTALO ,29% SULAWESI TENGAH ,07% SULAWESI BARAT ,10% SULAWESI SELATAN ,88% SULAWESI TENGGARA ,99% MALUKU - PAPUA ,05% MALUKU ,80% MALUKU UTARA ,30% PAPUA ,39% PAPUA BARAT ,56% Pancing (unit) Perangkap (unit) Alat Pengumpul dan Alat Penangkap (unit) Lain-lain (unit) TOTAL (unit) Kontribusi (%) Final Report Page 53

64 3.1.5 Capture Fisheries Infrastructure Based on data from Marine and Fisheries Book In Figure Year 2011, it is known that capture fisheries activities in Indonesia are supported by 818 fisheries ports distributed in all Indonesian provinces. Fisheries ports in Indonesia, based on Ministry of Marine and Fisheries Regulation No. PER.08/MEN/2012 about Fisheries Port, are categorized into 4 classes, namely: a) Ocean Fishing Port Class/OFP (Pelabuhan Perikanan Samudera/PPS) (Class A) Technical criteria: Able to serve fishing boats operating in Indonesian waters, Indonesian Exclusive Economic Zone (ZEEI), and open sea; Owns belay and anchor facility for fishing boats with at least 60 GT; Dock length at least 300 m, with pond depth at least minus 3 m; Able to accommodate at least 100 units of fishing boats or 6000 GT as a whole; and Utilizes and manages at least 20 ha of land. Operational criteria: Landed fishes are partially for export; There is fish loading and unloading activity and fishing product marketing averagely 50 tons per day; and There is fish processing industry and other supporting industry. b) Archipelago Fishing Port Class/AFP (Pelabuhan Perikanan Nusantara) (Class B) Technical criteria: Able to serve fishing boats operating in Indonesian waters and ZEEI; Owns belay and anchor facility for fishing boats with at least 30 GT; Dock length at least 150 m, with pond depth at least minus 3 m; Able to accommodate at least 75 units of fishing boats or 2250 GT as a whole; and Utilizes and manages at least 10 ha of land. Operational criteria: There is fish loading and unloading activity and fishing product marketing averagely 30 tons per day; and There is fish processing industry and other supporting industry. c) Coast Fishing Port Class/CFP (Pelabuhan Perikanan Pantai/PPP) (Class C) Technical criteria: Able to serve fishing boats operating in Indonesian waters; Final Report Page 54

65 Owns belay and anchor facility for fishing boats with at least 10 GT; Dock length at least 100 m, with pond depth at least minus 2 m; Able to accommodate at least 30 units of fishing boats or 300 GT as a whole; and Utilizes and manages at least 5 ha of land. Operational criteria: There is fish loading and unloading activity and fishing product marketing averagely 5 tons per day; and There is fish processing industry and other supporting industry. d) Fish Landing Terminal Class/FLT (Pangkalan Pendaratan Ikan/PPI) (Class D) Technical criteria: Able to serve fishing boats operating in Indonesian waters; Owns belay and anchor facility for fishing boats with at least 5 GT; Dock length at least 50 m, with pond depth at least minus 1 m; Able to accommodate at least 15 units of fishing boats or 75 GT as a whole; and Utilizes and manages at least 1 ha of land. Operational criteria: There is fish loading and unloading activity and fishing product marketing averagely 2 tons per day. The majority of fishing port class in Indonesia is PPI, with 749 units. While fishing port class with the least number is PPS, with 6 units (Table 3.1.8). In addition to fishing ports established by the government, there are also fishing ports established by private parties (2 units). Table The Number of Fishing Ports in Indonesia in 2011 No. Fishing Port Type Amount (unit) 1. Ocean Fishing Port (PPS) 6 2. Archipelago Fishing Port (PPN) Coast Fishing Port (PPP) Fish Landing Port (PPI) Private Fishing Port 2 Total 818 (Source: Marine and Fisheries in Figures, 2011) Other capture fisheries infrastructures which also not less important in supporting capture fisheries activities are ice and coldstorage factory. In the last 5 years, between , Ministry of Marine and Fisheries had established 61 units of ice factory and 40 units of coldstorage factory. In addition, there are also ice and coldstorage factories Final Report Page 55

66 established by private parties. The complete list of ice and coldstorage factories growth established by Ministry of Marine and Fisheries is shown in Table Table The growth of Ice and Coldstorage Factories established by Ministry of Marine and Fisheries, Infrastructure Year Ice Factory ColdStorage (Source: Marine and Fisheries in Figures, 2011) Market In general, fish market can be defined as fish trade area (alive, fresh or processed) with more than one seller, both in shopping centers, traditional markets, shops, department stores, plazas, trade centers or other names. Fish market holds an important position to provide secure fishes in the framework of food security and health. The existence of fish market is clearly aimed to facilitate the fisheries products trade and to enable fisheries products distribution and allocation in the community. The things to be considered as the main factors which influence the dynamic of capture fisheries products in Indonesia are the characteristics of capture fisheries itself, namely: a) Product s seasonal nature with small scale business and the locations are spread on many places. b) Products from capture fisheries products are perishable. c) The amount of capture fisheries products is difficult to predict or tends to fluctuate. The fact shows that the amount and quality of fisheries products are not always constant, and tend to change over time. d) Consumption of fisheries product in the form of food material is relatively stable all year. The condition of fisheries products marketing system can be identified through market operationalization traits, as identified by Hanafiah and Saefudding (1983): a) Most of fisheries products absorbed by end consumer is relatively stable all year, while the supply is highly dependent on production which is influenced by weather and climate state. b) Typically, collector traders give advanced payment to the fishermen as some kind of insurance to gain the biggest part of fisheries products in a particular time. Final Report Page 56

67 c) The channel of fisheries products trading system is typically consist of: producer (fishermen), middle-man traders as the collectors, major traders or wholesalers, retailers, and consumers (processing industries and end consumers. d) The most important position in capture fisheries products trading system or marketing is held by the collector traders which functioned as products gatherer, due to the wide-spread production areas, small production scales, and seasonal production. e) Marine capture fisheries products trading system or marketing is seasonal in nature. Fish marketing system in Indonesia can be classified into 3 types, namely domestic direct marketing, export direct marketing, and marketing through processing industry. Domestic direct marketing is usually used on fish commodities which are consumed directly by common society in the form of fresh products (alive), such as: rabbitfishes, goatfishes, pomfrets, croackers, pompanos, mullets, anchovy, trevallies, mackerel scads, mackerels, mackerel tunas, squids, etc. Meanwhile, export direct marketing is usually used for fish commodities which have high economic value in the form of fresh product, such as: tunas, groupers, prawns, lobsters, anchovies, etc. Marketing through processing industries is typically used for fish commodities which are abundant on particular times to the point that they cannot be fully absorbed by domestic direct marketing, or fish commodities which have added economic value if processed. Instances of fish commodities for this type of marketing are sardines, shipjack tunas, mackerel tunas, Spanish mackerels, giant catfishes, red snapper, threadfin breams, squids, swimming crabs, etc. Marketing through processing industries is divided into two sub-types, namely domestic processed fish marketing and export processed fish marketing. In general, there are 7 (seven) types of fish processing industries known in Indonesia, namely: drying, steam salt, fermentation (shrimp paste, fish soysauce, etc), fumigation, canning, freezing, and fish meal. As mentioned before, seasonal production, perishable, fluctuating, and relatively stable consumption will cause dynamic of capture fisheries products market which is indicated by fish commodities price dynamic. Fish price in Indonesia, especially for capture fisheries products, in addition to the fish types and locations, is also determined by production availability in the market. Illustration of price dynamic of several main fish commodities at several market locations in December 2011 is as follow (source: Fish Market News, Januari 2012 edition, vol. 101): Final Report Page 57

68 Shipjack Tuna During December 2011, shipjack tuna s price variation in several regional markets has significant differences. The lowest price ranged around Rp and the highest price reached Rp The lowest price is found in PPN Prigi which is stable from 1 st week to 4 th week. Meanwhile, the highest price is found in three markets, namely Cakalang Bulat Market (Rp ), Manonda Palu Market (Rp ), and Masomba Palu Market (Rp ). In the three markets, shipjack tuna s price increased from the 1 st week to the 3rd week. Figure Graph of Shipjack Tuna s Price in December 2011 in Several Locations Mackerel Tuna With the exception of PPN Prigi and Kampar District Market, the price of mackerel tuna in several regional markets is not significantly different, namely ranges between Rp to Rp Price fluctuation rate in every market is also relatively stable from week to week during December 2011, except for Brebes District Market where on the 1 st week reached Rp and then declined slightly to Rp on the 2 nd and 3 rd week, then declined to Rp on the 4 th week. As the exception, in PPN Prigi Market, mackerel tuna s price is very low, namely Rp during December Meanwhile, price of mackerel tuna in Kampar District Market is very high and reached Rp on the 4 th week, which is higher than weeks before with only Rp on the 1 st week of December 2011 Final Report Page 58

69 Figure Graph of Mackerel Tuna s Price in December 2011 in Several Locations Mackerel Mackerel s price in several regional markets is varied, with lowest price ranges around Rp and the highest price reached Rp The lowest price is found on PPN Prigi during December, while the highest price is found in Masomba Market on the 3 rd week. Even though mackerel s price is varied in every regional market, the fluctuation rate is relatively stable during four weeks of December However, there is an exception in two markets, namely Manonda Market and Masomba Market. In Manonda Market, price fluctuation rate is high, where on the i-week it reached Rp then increased to be Rp on the 2 nd week and declined on the 3 rd week to Rp Meanwhile, in Masomba Market, mackerel s price fluctuation is also strong, where in the 1 st week it reached Rp , while on the i-week it declined to Rp , and drastically increased on the 3 rd week to Rp Figure Graph of Mackerel s Price in December 2011 in Several Locations Final Report Page 59

70 Mackerel Scad In several regional markets, during December 2011, the price of mackerel scad is varied, with a keen difference of price. Lowest price ranged on Rp and highest price reached Rp The lowest price is found on PPN Prigi, while the highest price is found in Masomba Palu Market on the 3 rd week. Fluctuation rate of mackerel scad s price is relatively stable during four weeks of December in each regional market. However, there are exceptions in two markets, namely Manonda Palu Market and Masomba Palu Market. In Manonda Market, the price on the 1 st week reached Rp then increased to Rp on the 2 nd week, and declined to Rp on the 3 rd week. Meanwhile, in Masomba Palu Market, price fluctuation experienced a major rise on the 3 rd week which reached Rp after stayed on Rp level during the previous two weeks. Figure Graph of Mackerel Scad s Price in December 2011 in Several Locations Banana Prawn In several regional markets, the price of banana prawn during December 2011 is greatly varied, with a keen difference of price range. The lowest price ranged on Rp and the highest price reached Rp The lowest price is found in Serang District Market on the 1 st and 2 nd week, while the highest price of banana prawn is found in Madonga Kendari Market during December Even though the price of banana prawn is varied in every regional market, the fluctuation rate is relatively stable during four weeks of December 2011, except in Masomba Palu Market and Brebes District Market. Final Report Page 60

71 Figure Graph of Banana Prawn s Price in December 2011 in Several Locations Tiger Prawn Similar with banana prawn, during December 2011, the price of tiger prawn in several regional markets is varied, with a very keen price difference. The lowest price ranged on Rp and the highest price reached Rp The lowest price is found in Palu Old Market, while the highest price is found in Madonga Kendari Market during December Even though the price of tiger prawn is varied in each regional market, the fluctuation rate is relatively stable during four weeks of December However, there is an exception in Manonda Palu Market, where in the 1 st week it reached Rp , then declined to Rp on the 2 nd week, and increased once more on the 3 rd week to Rp As an illustration of average fish price dynamic on the quarterly amount of capture fisheries production during , several graphs are presented below (source: Indonesian Capture Fisheries Statistics, year of 2010 and 2011). The average fish price dynamic in Indonesia can be seen in Figure Meanwhile, the average fish price dynamics in Sumatera, Java, Bali-Nusa Tenggara, Kalimantan, Sulawesi and Maluku- Papua are presented in Figure to Final Report Page 61

72 Figure Graph of Tiger Prawn s Price in December 2011 in Several Locations Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Indonesia in Final Report Page 62

73 Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Sumatera in Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Java in Final Report Page 63

74 Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Bali-Nusa Tenggara in Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Kalimantan in Final Report Page 64

75 Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Sulawesi in Figure Fish Price Dynamic on Capture Fisheries Quarterly Production Fluctuation in Maluku-Papua in Final Report Page 65

76 Based on above graphs, if the amount of capture products production increased, fish price will tends to decline. Therefore, it is important to note that fish price increase does not always represent or reflect increase on fishermen s income, but should be viewed from volume or productivity level perspective, whether it increases, constant or declines. 3.2 Cultivation Fisheries Cultivation Fisheries Resource Cultivation fisheries production gained from marine cultivation, pond cultivation, fishpond cultivation, cage (keramba) cultivation, floating net cultivation, and wetland cultivation businesses. The increase on total cultivation land area since 2007 to 2011 is 45.8% with average increase of 11.5% per year. Cultivation business with the greatest total land increase from 2007 to 2011 is marine cultivation with 360.9% followed by floating net cultivation (92.0%), cage (keramba) cultivation (46.1%), pond cultivation (34.8%), wetland cultivation (25.1%), and fishpond cultivation (18.4%). Total area of cultivation fisheries according to category from 2007 to 2011 can be seen in Table (Indonesian Cultivation Fisheries Statistics, 2011). Table Total area of cultivation fisheries land according to category, (in Ha) Cultivation Type Marine Cultivation Pond Cultivation Fishpond Cultivation Keramba Cultivation Floating Nets Cultivation Wetland Total (Source: Indonesian Cultivation Fisheries Statistic, 2011) Distribution of marine cultivation, pond cultivation, fishpond cultivation, keramba cultivation, floating net cultivation, wetland cultivation business according to the main island can be seen in Table Cultivation fisheries is a sector where the growth can still be accelerated, considering the low potential exploitation in comparison to the available land areas. Cultivation land potential in Indonesia is estimated to reach Ha which consists of fishpond, marine, public waters, wetlands, and brackishwater cultivation lands (Ministry of Marine and Fisheries Data and Information Center, 2011). The existing condition of fishponds utilization is recorded to be 22.6%, wetlands 7.5%, while public Final Report Page 66

77 waters utilization for keramba or KJA is 1.1%. Land utilization level for brackishwater cultivation reaches 36%, while for marine cultivation is still on 1.1%. Land provision for cultivation areas can be implemented through new land establishment or utilizing idle lands. The establishment of new cultivation space or idle land utilization for cultivation activities should be planned based on the information gathered through a feasibility study. Particularly for prawn and milkfish ponds, land provision should be prioritized on the revitalization of old ponds with idle status. Infrastructure provision in the form of new cultivation lands is also implemented by considering environmental sustainability. Table Cultivation fisheries land total area according to the main islands, No Island % 1 SUMATERA Marine (M2) Pond (Ha) Fishpond (Ha) Keramba (M2) Floating nets (M2) Wetland(Ha) JAVA Marine (M2) Pond (Ha) Fishpond (Ha) Keramba (M2) Floating nets (M2) Wetland(Ha) BALI-NUSA T. Marine (M2) Pond (Ha) Fishpond (Ha) Keramba (M2) Floating nets (M2) Wetland(Ha) KALIMANTAN Marine (M2) Pond (Ha) Fishpond (Ha) Keramba (M2) Final Report Page 67

78 Produksi Perikanan Budidaya (juta ton) Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Floating nets (M2) Wetland(Ha) SULAWESI Marine (M2) Pond (Ha) Fishpond (Ha) Keramba (M2) Floating nets (M2) Wetland(Ha) MAL.-PAPUA Marine (M2) Pond (Ha) Fishpond (Ha) Keramba (M2) Floating nets (M2) (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) 10,00 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0, *) Produksi Budidaya 1,14 1,22 1,47 2,16 2,68 3,19 3,86 4,71 6,28 7,90 9,45 Figure Cultivation fisheries production from (million tons) Indonesian cultivation fisheries production in 2012 (temporary figure) is 9.45 million tons (temporary figure), or 61.92% from national fisheries production which is predicted to be million tons. The composition of cultivation fisheries production according to business types is freshwater cultivation with 2.07 million tons, brackishwater cultivation with 1.79 million tons, and marine cultivation (including seaweed) with 5.59 million tons. Final Report Page 68

79 Commodities are the traded goods or products. Thus, aquaculture commodities are fish types (including prawns, mollusks, echinoderms, and algae) produced in aquaculture activities and become traded goods or products. There are more than species cultivated commercially in large quantities. The main cultivation fisheries commodities in Indonesia consist of prawns, groupers, snappers, milkfishes, patins, tilapias, goldfishes, catfishes, carps, seaweeds, clams, crabs, and others. Fish production data according to commodities in Indonesia for period is presented in the following table. Table Fish production according to commodities in Indonesia for period No. COMMODITY Production (Tons) Year Validation 2012* 2012Projection TOTAL Prawn Tiger prawn Vanamei Other Grouper Snapper Milkfish Patin Tilapia Goldfish Catfish Carp Seaweed Shells Crab Other (Source: Directorate General of Cultivation Fisheries, 2013) The highest production of cultivation fisheries in 2012 is achieved by South Sulawesi, and followed by East Java and Central Sulawesi. Papua, Bangka Belitung and Jakarta are provinces with the lowest production of cultivation fisheries. Cultivation fisheries production in 2012 according to provinces is presented in the following Figure. Final Report Page 69

80 CAPAIAN PRODUKSI PERIKANAN BUDIDAYA TAHUN 2012 BERDASARAKAN PROVINSI* Provinsi PABAR 46,8 PAPUA 3,9 ACEH MALUT 122,7 SUMUT MALUKU 516,7 SUMBAR SULTERA 638,9 SULSEL 1.953,4 RIAU SULBAR 49,7 KEPRI SULTENG 917,8 JAMBI GORONTALO 111,8 SUMSEL SULUT 212,9 BABEL KALTIM 201,0 KALSEL 88,9 BENGKULU KALTENG 42,3 LAMPUNG KALBAR 35,2 DKI JAKARTA NTT 458,8 BANTEN NTB 547,0 JABAR BALI 155,9 JATENG JATIM 938,2 DI YOGYAKARTA 51,7 DI YOGYAKARTA JATENG 254,6 JATIM JABAR 862,3 BALI BANTEN 102,2 DKI JAKARTA 28,8 NTB LAMPUNG 110,9 NTT BENGKULU 48,5 KALBAR BABEL 4,8 KALTENG SUMSEL 382,8 KALSEL JAMBI 37,8 KEPRI 50,4 KALTIM RIAU 75,0 SULUT SUMBAR 210,2 GORONTALO SUMUT 154,5 SULTENG ACEH 35,2 SULBAR 6-200,0 400,0 600,0 800, , , , , , ,0 Ribu Ton *) angka sementara Figure Cultivation fisheries production in 2012 according to provinces The highest production of cultivation fisheries according to cultivation types is in marine cultivation (including seaweed), pond cultivation, fishpond cultivation, floating net cultivation, keramba cultivation, and wetland cultivation. Cultivation fisheries production in according to cultivation types is presented in the following Figure. Final Report Page 70

81 TOTAL Sawah KJA Karamba Kolam Tambak Budidaya laut 0 Tahun 2007 Tahun2008 Tahun2009 Tahun2010 Tahun2011 Figure Cultivation fisheries production according to business types (in tons) Production dynamic according to quarter periods and main islands is presented in the following Figure. Sulawesi Island which is the biggest cultivation fisheries producer in Indonesia shows continual production increase except on the end of 2010 quarter and on the beginning of 2011 quarter, which shows production decline. Figure Cultivation fisheries production according to yearly quarter and Islands (in tons) Final Report Page 71

82 Production dynamics according to yearly quarter for Sumatera Island, Java Island and Bali-Nusa Tenggara Island are presented in the following Figure. Java Island recorded the highest production in the first quarter of 2011, Bali Island on the second quarter of 2011 and Sumatera Island on the last quarter of Figure Cultivation fisheries production according to yearly quarter for Sumatera, Java and Bali-Nusa Tenggara (in tons) Production dynamics according to yearly quarter for Kalimantan Island and Sulawesi Island are presented in the following Figure. Kalimantan s production dynamic is relatively flat while Sumatera reached its peak on the last quarter of Figure Cultivation fisheries production according to yearly quarter for Kalimantan and Sulawesi (in tons) Final Report Page 72

83 Production dynamic according to yearly quarter for Maluku-Papua is presented in the following figure. The peak of Maluku-Papua s production is reached on the last quarter of Figure Cultivation fisheries production according to yearly quarter for Maluku- Papua (in tons) Programs for cultivation fisheries production improvement that had been implemented are (1) Fish Cultivation Production System Development (2)Fish Breeding System Development (3) Fish Health and Cultivation Environment System Development (4) Fish Cultivation Business System Development (5) Fish Cultivation Infrastructure System Development (6) Cultivation Fisheries Adaptive Applied Technology Application and Assistance, and (7) Other Technical Duties Implementation and Management Support Improvement on Directorate General of Cultivation Fisheries Fish Cultivator Main fish cultivators are fish cultivation business operators that most or all of their income are gained from cultivation fisheries business, while part-time cultivation business operators are cultivation business operators that most of their income are not gained from cultivation business. A fisheries business in the form of fisheries commodities production through cultivation is known as a cultivation fisheries business or an aquaculture business. Final Report Page 73

84 RTP PEMBUDIDAYA Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN According to time used to operate cultivation activities, fish cultivators can be classified into (1) fulltime cultivators, that is cultivators which most of their working time are only used for fish cultivation activities, and (2) Part-time cultivators, that is cultivators which only partial of their time are used for fish cultivation activities. The number of cultivator FHs during time period experienced an increase of 18% or averagely 4% per year. The number of cultivator FHs in 2007 is FHs and in 2011 it reached FHs. The only cultivator FHs to decrease are Wetland Cultivation FHs, namely -6% during time period. The number of cultivation fisheries FHs according to business types is presented in the following Figure Figure The number of cultivation fisheries FHs according to business types During the last five years, the total number of cultivators increases by 43%. The highest percentage of increase is 123% in marine cultivation business. The number of fish cultivators according to cultivation types is presented in Table Final Report Page 74

85 Table The number of fish cultivators according to cultivation types in (unit: person) Type % Total Amount Marine Pond Fishpond Keramba Floating nets Wetland (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The distribution of fish cultivator FHs according to the island shows that the majority of fish cultivator FHs is Fishpond Cultivation FHs in Java, while Wetland FHs in Maluku-Papua have the lowest number. The number of cultivation fisheries FHs according to island distribution is presented in the following Figure Sumatera Jawa Bali - Nusatenggara Kalimantan Sulawesi Maluku - Papua Figure The number of cultivation fisheries FHs according to island distribution The number distribution of fish cultivators according to island shows that the majority of fish cultivators is Fishpond Cultivators in Java island, while Wetland Cultivators in Maluku-Papua have the lowest number. The number of cultivation fisheries operators according to island distribution is presented in the following Figure. Final Report Page 75

86 Maluku - Papua Sulawesi Kalimantan Bali - Nusatenggara Jawa Minapadi Jaring Apung Karamba Kolam Tambak Laut Sumatera Figure The number of cultivation fisheries operators according to island distribution (unit: person) The number of cultivator FHs in 2012 according to island distribution is dominated by Java Island with 52%, followed by Sumatera (21%), Sulawesi (13%), Kalimantan (7%), Bali-Nusa Tenggara (5%), and Maluku-Papua (2%). The number of cultivators in detail is presented in the following Figure. Kalimantan 7% Kontribusi Contribution (%) Sulawesi 13% Maluku - Papua 2% 0% Sumatera 21% Bali - Nusatenggara 5% Jawa 52% Figure Cultivation fisheries FHs contribution in 2012 according to island distribution (%) The distribution of fish cultivators in 2012 is proportional with cultivator FHs distribution according to island, namely mostly found in Java Island (54%) and followed Final Report Page 76

87 by Sumatera (17%), Sulawesi (14%), Kalimantan (8%), Bali-Nusa Tenggara (5%) and Maluku-Papua (2%). The distribution of cultivators according to island is presented in the following Figure.. Jumlah Numbers Pembudidaya of Cultivators Sumatera Jawa Bali - Nusatenggara Kalimantan Sulawesi Maluku - Papua 2% 8% 5% 14% 17% 54% Figure Fish cultivators distribution in 2012 according to island (%) Cultivation Fisheries Business Scale The magnitude of cultivation fisheries business scale can be categorized into the business size category and technology application category. The category of business size is related to the total area used, while technology application category is based on intensive, semi-intensive as well as traditional technology system. The following table presents the cultivation fisheries business scale according to business size category. Table Cultivation fisheries business scale according to business size category Cultivation Type Business Size Category Marine Cultivation < 50 m m m m2 >500 m2 Pond Cultivation < 1 Ha 1-2 Ha 2-5 Ha 5-10 Ha > 10 Ha Fishpond Cultivation < 0,1 Ha.0,1-0,3 Ha 0,3-0,5 Ha 0,5-1 Ha >1 Ha Keramba Cultivation < 50 m m m m2 >500 m2 Floating Nets Cultivation < 50 m m m m2 >500 m2 Wetland Cultivation < 0,5 Ha 0,5-1 Ha 1-2 Ha 2-3 Ha > 3 Ha (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The highest number of Marine Cultivation Fisheries Household (FH) is in < 50 m 2 business scale which reaches 56.3% from the total of Marine Cultivation Fisheries Final Report Page 77

88 >500 TOTAL % Household. The number of marine cultivation FHs according to business scale category is presented in the following Table Table The number of Marine Cultivation FHs according to business scale category Island < 50 m 2 m 2 m 2 m 2 m 2 Sumatera ,0 Java ,8 Bali-NusaT ,1 Kalimantan ,5 Sulawesi ,9 Mal. Papua ,7 TOTAL % 56,3 22,0 4,5 5,1 12,2 100 (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The highest number of Pond Cultivation Fisheries Household (FH) is in 1-2 Ha business scale which reaches 45.2% from the total of Pond Cultivation Fisheries Household. The number of pond cultivation FHs according to business scale category is presented in the following Table. Table The number of Pond Cultivation FHs according to business scale category Island < 1Ha 1-2Ha 2-5Ha 5-10Ha > 10Ha TOTAL % Sumatera ,6 Java ,2 Bali-NusaT ,0 Kalimantan ,2 Sulawesi ,8 Mal. Papua ,2 TOTAL % 19,5 45,2 20,3 11,1 3,9 100 (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The highest number of Fishond Cultivation Fisheries Household (FH) is in < 0.1 Ha business scale which reaches 71.7% from the total of Fishpond Cultivation Fisheries Household. The number of fishpond cultivation FHs according to business scale category is presented in the following Table. Final Report Page 78

89 Table The number of Fishpond Cultivation FHs according to business scale category Island < 0,1Ha 0,1-0,3Ha 0,3-0,5Ha 0,5-1Ha >1 Ha TOTAL % Sumatera ,9 Java ,2 Bali-NusaT ,9 Kalimantan ,8 Sulawesi ,5 Mal. Papua ,7 TOTAL % 71,7 11,3 10,7 4,6 1,7 100 (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The highest number of Keramba Cultivation Fisheries Household (FH) is in < 50 m 2 business scale which reaches 97.3% from the total of Keramba Cultivation Fisheries Household. The number of Keramba cultivation FHs according to business scale category is presented in the following Table. Table The number of Keramba Cultivation FHs according to business scale category Island < 50 m m m m 2 >500 m 2 TOTAL % Sumatera ,0 Java ,6 Bali ,9 NusaT. Kalimantan ,6 Sulawesi ,2 Mal ,7 Papua TOTAL % 97,3 2,0 0,2 0,5 0,0 100 (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) Final Report Page 79

90 The highest number of Floating Nets Cultivation Fisheries Household (FH) is in < 50 m 2 business scale which reaches 95.5% from the total of Floating Nets Cultivation Fisheries Household. The number of Floating Nets Cultivation FHs according to business scale category is presented in Table Table The number of Floating Nets Cultivation FHs according to business scale category Island < 50 m m m m 2 >500 m 2 TOTAL % Sumatera ,9 Java ,1 Bali-NusaT ,2 Kalimantan ,6 Sulawesi ,7 Mal. Papua ,4 TOTAL % 95,5 2,6 1,8 0,1 0,1 100 (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The highest number of Wetland Cultivation Fisheries Household (FH) is in < 0.5 Ha business scale which reaches 95.5% from the total of Wetland Cultivation Fisheries Household. The number of wetland cultivation FHs according to business scale category is presented in the following Table. Table The number of Wetland Cultivation FHs according to business scale category Island < 0,5 Ha 0,5-1,0 Ha 1-2 Ha 2-3 Ha > 3 Ha TOTAL % Sumatera ,7 Java ,5 Bali-NusaT ,0 Kalimantan ,2 Sulawesi ,5 Mal. Papua ,1 TOTAL % 57,2 33,8 5,8 2,1 1,1 100 (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) Final Report Page 80

91 3.2.4 Cultivation Fisheries Input and Technology Variability Fisheries cultivation system is defined as the production coordinating organization along with its component and technology applied in the organization which operate synergistically resulting in production. Components inside the fisheries cultivation system work synergistically to create controlled and optimized environment to maintain fish survival and encourage fish growth and reproduction. In Indonesia, there are at least 13 fisheries cultivation systems to be implemented to produce fishes. The aforementioned systems are calm water fish pond, running water fish pond, pond, floating net, stationary net, cage (keramba), kobongan, penculture, enclosure, longline, raft, aquarium, and ranching (via restocking). Each system has its own components, such as pond with dyke, bottom of the pond, inlet, outlet, water input and drainage channels as its components. Fisheries cultivation systems can also categorized into 2, namely: 1) land-based aquaculture, and 2) water-based aquaculture. In land-based fisheries cultivation system, cultivation institution is located on land and separated from waters as the source of the system. Water channeling from waters is conducted by the use of sewers or pipes, and the influence of those waters on fish could be manipulated or eliminated (e.g. via water treatment), so that the system is a closed system. Land-based fisheries cultivation systems among others are calm water pond, running water pond, pond, basin, aquarium and tank. Water-based fisheries cultivation system is one with an open system and has a very strong interaction and almost no limitations between cultured fishes with external environment; instances of this system are floating net, stationary net, keramba, kombongan, longline, raft, penculture and enclosure. Different with land-based system, this water-based system is located in the waters bodies. Given the condition, waterbased system is highly influences and influenced by external factors. Cultivation fisheries input variability includes cultivation location, production facility, breed, seed, food, fertilizer, medicine, pesticide, aquaculture tools, work force and so on. Meanwhile, cultivation fisheries technologies can be divided into intensive, semiintensive and traditional technologies. The difference on technological systems is mainly on the seed spread density, the number of artificial food as well as water management and cultivation institution. Final Report Page 81

92 Table Food needs according to the main commodity (in tons) No Details % Prawn , ,93 2. Tilapia ,09 3. Patin Catfish ,1 5. Goldfish ,6 6. Carp ,9 7 Snapper ,12 8. Grouper , Milkfish , Other ,72 Amount ,63 (Source: Directorate of Production, Directorate General of Cultivation Fisheries, 2012) Cultivation Fisheries Infrastructure Infrastructure establishment becomes an important aspect of cultivation fisheries development, considering its great role as a multiplier factor. In order to increase production, support and readiness are needed; one of them is from cultivation fisheries infrastructure. Regional infrastructure establishment is closely related to economic development of that particular region, due to the positive correlation of infrastructure with regional development level. A more developed regional is expected to has a more adequate infrastructure. The problem of cultivation fisheries development in Indonesia is the limited access of support and distribution areas that tend to be widely spread with highly varied infrastructure availability. An important supporting infrastructure for cultivation fisheries production improvement is cultivation institution (fishpond, floating net, pond, etc, irrigation channel network, Fish Seed Agency, connecting road and production road, food factory, as well as energy provision infrastructure such as electricity network and gas station). Cultivation fisheries is a sector which growth can be continuously accelerated, considering that the exploitation is still lower than the production. The existing condition of fishpond potential exploitation is recorded to be 22.6%, wetland 7.5%, while public waters exploitation for keramba and floating net is only 1.1%. Land exploitation level for brackishwater cultivation reaches 36%, while for marine cultivation reaches 1.1%. Final Report Page 82

93 Fish Seed Agency (FSA) distribution in Indonesia is still unequal and centered in Java, while the cultivation fisheries potential mostly exists outside of Java. For irrigation channels, only ha (26%) from existing ponds with well-managed irrigation channels, the rests are still in alarming conditions. Other supporting infrastructures such as production road, water channel, and connecting road between production areas and processing-marketing areas need to re-arranged, especially in relation to the cultivation fisheries production improvement plan. Table General Data of Unit Scope Laboratories, Directorate General of Cultivation Fisheries NO ACCREDITED LABORATORY NO IN ACCREDITATION PROCESS 1 BBPBAT - SUKABUMI 1 BBAP UJUNG BATTEE - ACEH 2 BBPBAP - JEPARA 2 BBAT TATELU - SULUT 3 BBPBL - LAMPUNG 3 BBL LOMBOK - NTB 4 BBAP - SITUBONDO 4 BBL AMBON 5 BBAT - MANDIANGIN 5 BLUPPB KARAWANG 6 BBL - BATAM 6 BROODSTOCK CENTRE KARANGASEM 7 BBAP - TAKALAR 7 LPPIL SERANG 8 BBAT - JAMBI (Source: Directorate of Fish Health and Environment, Directorate General of Cultivation Fisheries, 2011) Given the aforementioned problems, the government seeks to optimize the development of cultivation fisheries through development region/center approach which is called minapolitan. Minapolitan also means a region s economic development which is based on integrated fisheries business. Challenges faced in developing cultivation fisheries is how to optimize the existing potential to improve production and prosper fish cultivator communities as well as other fisheries communities. In minapolitan development plan, infrastructure to be established must be comprehensive and in a complete design which clearly illustrating the relation/integration of infrastructure function in supporting the optimization fisheries resources exploitation Market The total of cultivation production value in 2007 is Rp , in 2008 is Rp , in 2009 is Rp , in 2010 is Rp , and in 2011 is Rp Cultivation production values in 2007 to 2013 are presented in the following Figure. Final Report Page 83

94 Figure Cultivation fisheries production total value according to business types (x Rp million) Increase of cultivation fisheries production total value according to cultivation types in 2007 to 2011 is 138%. The highest increase of cultivation fisheries production total value according to business types in 2007 to 2011 is found in fishpond cultivation (303%), followed by floating net cultivation (288%), keramba cultivation (237%), marine cultivation (189%), wetland cultivation (91%), and pond cultivation (65%). Table Fish production values according to cultivation types in (x Rp 1000.) Type % Total Marine Pond Fishpond Keramba Floating ne ts Wetland (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) The main commodities of cultivation fisheries are prawns, groupers, seaweeds, tilapias, goldfishes, milkfishes, snappers, patins, catfishes, and carps. There are 7 (seven) commodities which experience increases of production value in , while the other commodities experience decrease of production value. Fish total production values according to cultivation commodities in are presented in the following Table. Final Report Page 84

95 Table Fish production values according to cultivation commodities in (x Rp 1000) Commodity % Prawn Grouper Seaweed Tilapia Goldfish Milkfish Snapper Patin Catfish Carp Other (Source: Processed from Indonesian Cultivation Fisheries Statistic, 2011) Cultivation commodities which experience decrease of production value are groupers (-49%), tilapias (-9%), seaweeds (-8%), and carps (-8%). The highest positive growths of production value according to cultivation commodity in are achieved by catfish commodity with 43%, groupers (38%), patins (33%), other fishes (22%), goldfishes (12%), prawns (3%), and snappers with 2%. The following Figure presents cultivation fisheries production values according to commodities. Final Report Page 85

96 Nilai Produksi (dalam juta Rp) Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Komoditi Udang Kerapu Rumput Laut Nila Ikan Mas Bandeng Kakap Patin Lele Gurame Lainnya Figure Cultivation fisheries production values according to commodities (x Rp 1000) Final Report Page 86

97 IV. FISHERIES BUSINESS CHARACTERISTICS 4.1 Capture Fisheries Business The main characteristics of capture fisheries in Indonesia are varied, depend on the fishing unit size and fishing gears used. To the date, there is no exact standardization of fishing boat size. It is also the case with fishing gears utilization, both in types or dimension. Consequently, it is difficult to describe the characteristics of capture fisheries business in Indonesia, and it can be approached with the fishing unit size dominantly used in several fishing center regions. The following is the illustration of capture fisheries characteristics from several kinds of fishing business dominantly found in Indonesian waters Capture Fisheries Business Profile 1) Coping Fisheries Business In general, coping fisheries business needs several investment components to conduct fishing activities. The mentioned investment components are boats, machineries, and fishing gears. In 2012, the estimated total of investment needed for coping fisheries business in 10 GT scale is Rp (Table 4.1.1). Table Investment components for coping fisheries business in 10 GT business scale for year of 2012 No Description Amount (Rp) 1 Boat Main engine Supporting engine Fishing gears Total investment Costs incurred for almost all activities of fishing operation using coping are similar. The costs are divided into two, namely fixed cost and unfixed cost. Fixed cost consists of costs for maintenance and investment component depreciation; by other words, fixed cost is cost incurred even though there are no fishing activities. Meanwhile, unfixed cost is cost incurred for sailing operational needs fulfillment. Costs incurred for coping fisheries business activities is approximately Rp per year (Table 4.1.2). Final Report Page 87

98 Table Cost components for coping fisheries business in 10 GT business scale in 2012 No. Description Amount (Rp) Fixed Cost 1 Boat maintenance Main engine maintenance Supporting engine maintenance Fishing gears maintenance Boat depreciation Main engine depreciation Supporting engine depreciation Landing/anchoring Total of Fixed Cost Unfixed Cost 1 Diesel fuel Oil Logistic Ice Worker salary Total of Unfixed Cost Total Cost Revenue gained in coping fisheries business is highly varied for every fishing trip, and even more varied for every fishing unit. It is highly depends on fishing location and the types of fish captured with coping. It is important to note that not all units of coping fishing operate in west monsoon or dry season. There are several coping units which only operate only in peak and moderate season. In Table 4.1.3, revenue gained from coping fisheries business is presented. Table Revenue gained from coping fisheries business in 10 GT business scale in 2012 No Fishing Season Revenue (Rp) 1 Peak season Moderate season Dry season Total Revenue Business analysis for coping fisheries activities shows that coping is a profitable business. Analysis result on coping can be seen in Table Net profit gained from coping fisheries is Rp R/C value on coping fisheries is 1.17 which means that every Rp 1 cost incurred will result in Rp 1.17 of revenue. In addition, ROI value Final Report Page 88

99 from coping fisheries shows that Rp 1 of investment will result in Rp of profit. Meanwhile, time needed for return of investment is approximately months. Table Business analysis for coping fisheries business in 10 GT business scale in 2012 No Business Analysis Value 1 Net profit Rp R/C 1,17 3 PP 1,87 year or 22,42 months 4 ROI 53,52 2) Usaha Perikanan Tangkap Pancing Tonda Similar with coping fisheries business, investment components needed for trolling line fisheries business are boats, machineries, and fishing gears. Typically, trolling line business needs greater investment cost compared to coping business, it is due to the bigger boat used in trolling line fisheries business. Total of investment needed for trolling line fisheries in 15 GT business scale is approximately Rp (Table 4.1.5). Table Investment components for trolling line fisheries business in 15 GT business scale in 2012 No Description Amount (Rp) 1 Boat Main engine Supporting engine Fishing gears Total investment Fixed cost incurred every year for trolling line fisheries business is Rp Meanwhile, unfixed cost incurred is Rp per year. The detail of cost components for trolling line fisheries is presented in Table Table Cost components for trolling line fisheries business in 15 GT business scale in 2012 No Description Amount (Rp) Fixed Cost 1 Boat maintenance Main engine maintenance Supporting engine maintenance Fishing gears maintenance Boat depreciation Final Report Page 89

100 6 Main engine depreciation Supporting engine depreciation Fishing gears depreciation Anchoring FAD rent Total of Fixed Cost Unfixed Cost 1 Fuel Oil Logistic Total of Unfixed Cost Total Cost In general, trolling line fisheries business captures tunas, so that the revenue gained from this business is relatively high. Similar with coping fisheries business, not all units of trolling line fisheries business operate in dry or monsoon season. Total of revenue gained from trolling line fisheries business is approximately Rp The details of revenue gained in trolling line fisheries business are presented in Table Table Revenue gained in trolling line fisheries business in 15 GT business scale in 2012 No Fishing Season Revenue (Rp) 1 Peak season Moderate season Dry season Total revenue Trolling line fisheries business is profitable in almost all of its activities. The result of business analysis for trolling line fisheries business shows that net profit gained in 1 year is Rp R/C value for trolling line fisheries business also indicates profit because for everty Rp 1 cost incurred, there will be Rp 1.79 of revenue gained. ROI value for trolling line fisheries business is which means that Rp 1 of investment made at the beginning of business will result in Rp of profit. Trolling line fisheries business only needs approximately 6.28 months to return the total investment made at the beginning of business (Table 4.1.8). Final Report Page 90

101 Table Business analysis for trolling line fisheries business in 15 GT business scale in 2012 No Business Analysis Value 1 Net profit Rp R/C 1,79 3 PP 0,52 year or 6,28 months 4 ROI 191,20 3) Usaha Perikanan Tangkap Bubu Investment components needed for portable trap fisheries business are boats, machineries, and fishing gears. Total of investment needed for the initial business capital of 15 GT portable trap fisheries business in 2012 is approximately Rp Table shows the details of investment components for portable trap fisheries business in 15 GT business scale. Table Investment components for portable trap fisheries business in 15 GT business scale in 2012 No Description Amount 1 Boat Main engine Supporting engine Fishing gears Total Investment Fixed cost for portable trap fisheries business consists of maintenance cost and costs for boats, machinery, and fishing gears depreciation, added with belay and anchor cost. Meanwhile, unfixed cost for portable trap fisheries business consists of costs for fuel, oil, logistic, ice, and work force salary. The total of cost incurred to operate portable trap fisheries business is Rp per year (Table ). Table Cost components for portable trap fisheries business in 15 GT business scale in 2012 No Description Amount (Rp) Fixed Cost 1 Boat maintenance Engine maintenance Navigation tools maintenance Fishing gears maintenance Boat depreciation Main engine depreciation Final Report Page 91

102 7 Supporting engine depreciation Landing/anchoring Total of Fixed Cost Unfixed Cost 1 Diesel Fuel Oil Logistic Ice Worker salary Total of Unfixed Cost Total Cost The amount of revenue gained from portable trap fisheries business is varied for every unit of portable trap fishing. However, the revenue gained from portable trap fisheries business can be estimated by averaging it. Revenue of portable trap fisheries business could reach Rp per year. The amount can be more or less than Rp per year for each fishing unit (Table ). Table Revenue gained from portable trap fisheries business in 15 GT business scale in 2012 No Fishing Season Revenue(Rp) 1 Peak season Moderate season Dry season Total Revenue The result of business analysis shows that portable trap fisheries business gives profit after 1 year period. Net profit gained is approximately Rp , with R/C of 2.07 which means that in Rp 1 of cost incurred in the business there will be Rp 2.07 profit gained. ROI value for portable trap fisheries business is which means that every rupiah of investment made will give Rp of profit. Thus, time needed for return of investment is 5.29 months (Table ). Tabel Analisis usaha untuk usaha perikanan tangkap bubu skala usaha 15 GT tahun 2012 No Business Analysis Value 1 Net profit Rp R/C 2,07 3 PP 0,44 year or 5,29 months 4 ROI 226,85 Final Report Page 92

103 4) Gillnet Fisheries Business Investment components needed for gillnet fisheries business are boats, machineries, and fishing gears. Total of investment needed for the initial business capital of 2 GT gillnet fisheries business in 2012 is approximately Rp Table shows the details of investment components for gillnet fisheries business in 2 GT business scale. Table Investment components for gillnet fisheries business in 2 GT business scale in 2012 No Description Amount 1 Boat Main engine Supporting engine Fishing gears Total investment Fixed cost for gillnet fisheries business consists of maintenance cost and costs for boats, machinery, and fishing gears depreciation. Meanwhile, unfixed cost for portable trap fisheries business consists of costs for fuel, oil, logistic, ice, and work force salary. The totals of cost incurred to operate gillnet fisheries business is Rp per year (Table ). Table Cost components for gillnet fisheries business in 2 GT business scale in 2012 No Description Amount (Rp) Fixed Cost 1 Boat maintenance Engine maintenance Navigation tools maintenance Fishing gears maintenance Boat depreciation Main engine depreciation Supporting engine depreciation Total of Fixed Cost Unfixed Cost 1 Diesel fuel Oil Logistic Ice Final Report Page 93

104 Total of Unfixed Cost Total Cost The amount of revenue gained from gillnet fisheries business is varied for every unit of gillnet fishing. However, the revenue gained from gillnet fisheries business can be estimated by averaging it. Revenue of gillnet fisheries business could reach Rp per year. The details for revenue is presented in Table Table Revenue gained from gillnet fisheries business in 2 GT business scale in 2012 No Fishing Season Revenue (Rp) 1 Peak season Moderate season Dry season Total Revenue The result of business analysis shows that gillnet fisheries business does not give profit in 1 year period. Revenue R/C ratio is 0.64 which means that in Rp 1 of cost incurred in the business there will be Rp 0.64 revenue gained. It means that this gillnet fisheries business experienced loss. ROI value for gillnet fisheries business is also negative, which means that every rupiah of investment made results in loss. Business analysis for gillnet fisheries business in 2 GT business scale is presented in Table Table Business analysis for gillnet fisheries business in 2 GT business scale in 2012 No Business Analysis Value 1 Net profit Rp R/C 2,07 3 PP 0,44 year or 5,29 months 4 ROI 226,85 5) Cantrang Fisheries Business The amount of investment needed for cantrang fisheries in 20 GT business scale in 2012 is approximately Rp Investment components of this business include boats, main machinery, and cantrang (Table ). Final Report Page 94

105 Table Investment components for cantrang fisheries business in 20 GT business scale in 2012 No Description Amount 1 Boat Main engine Supporting engine Fishing gears Total investment The total amount incurred for cantrang fisheries business is Rp per year. Fixed cost incurred includes costs for maintenance and investment component s depreciation. Meanwhile, unfixed cost includes costs for diesel fuel, fishermen consumption, licensing, auction, sedekah laut (giving offering to the sea), as well as work force s salary and bonus (Table ). The average revenue gained from cantrang fisheries business in 2012 during a year is Rp Based on the revenue, as well as investment and cost from the business, it is known that the net profit gained from cantrang fisheries is Rp , with R/C value of 1.32 and ROI value of The relatively high ROI value means that the time needed for return of investment is shorter, namely less than a year or approximately 11.8 months (Table ). Table Cost components for cantrang fisheries business in 20 GT business scale in 2012 No Description Jumlah Fixed Cost 1 Boat maintenance Main engine maintenance Supporting engine maintenance Fishing gears maintenance Boat depreciation Main engine depreciation Supporting engine depreciation Fishing gears depreciation Total of Fixed Cost Unfixed Cost 1 Diesel Consumption Worker salary and bonus Licensing fee Sea offering Auction cost Final Report Page 95

106 Total of Unfixed Cost Total cost Table Business analysis for cantrang fisheries business in 20 GT business scale in 2012 No Business Analysls Value 1 Net profit Rp R/C 1,32 3 PP 0,98 year 4 ROI 101,72 6) Pole and Line Fisheries Business Investment components needed for pole and line fisheries business is also similar with other fishing units, namely: boats, machinery, and fishing gears. Total of investments needed for pole and line fisheries business capital in 35 GT business scale in 2012 is Rp Table shows the details of investment components for pole and line fisheries business in 35 GT business scale. Table Investment components for pole and line fisheries business in 35 GT business scale in 2012 No Description Amount 1 Boat Main engine Supporting engine Fishing gears Total investment Fixed cost for pole and line fisheries business consists of maintenance cost and costs for boats, machinery, and fishing gears depreciation, added with belay and anchor cost, business license, and fishing license. Meanwhile, unfixed cost for pole and line fisheries business consists of costs for fuel, oil, logistic, ice, and work force salary. The total of cost incurred to operate pole and line fisheries business is Rp per year (Table ). Final Report Page 96

107 Table Cost components for pole and line fisheries business in 35 GT business scale in 2012 No Description Amount (Rp) Fixed cost 1 Boat maintenance Engine maintenance Navigation tools maintenance Fishing gears maintenance Boat depreciation Main engine depreciation Supporting engine depreciation Pas biru/laik laut (pas kecil) SIUP SIPI/SPI Anchoring and Retirbution Total of Fixed Cost Unfixed Cost 1 Diesel fuel Oil Ice Logistic Bait Worker salary Total of Unfixed Cost Total Cost The amount of revenue gained from pole and line fisheries business is relatively varied for each units, thus is estimated using average revenue approach. Average revenue of pole and line fisheries business in 35 GT business scale is approximately Rp per year, the details are presented in Table Table Revenue gained by pole and line fisheries business in 35 GT business scale in 2012 No Fishing Season Revenue(Rp) 1 Peak season Moderate season Dry season Total Revenue The result of business analysis shows that pole and line fisheries business gives an adequate profit. Net profit gained is approximately Rp , with R/C of 1.77 which means that in Rp 1 of cost incurred in the business there will be Rp 1.77 profit Final Report Page 97

108 gained. ROI value for pole and line fisheries business is which means that every rupiah of investment made will give Rp of profit. Thus, time needed for return of investment is 8.13 months (Table ). Table Business analysis for pole and line fisheries business in 35 GT business scale in 2012 No Business Analysis Value 1 Net profit Rp R/C 1,77 3 PP 0,68 tahun 4 ROI 147, Capture Fisheries Business Revenue Structure Capture fisheries business revenue is highly influenced by 2 (two) main factors, namely: fish sell price and the amount of production. Meanwhile, the two factors are influenced by fishing season. The following is the illustration of revenue structure for capture fisheries business per season in 2012 for several kinds of marine capture fisheries business. 1) Coping Fisheries Business Coping fisheries business revenue structure for 10 GT business scale is mostly derived from moderate season, namely 38.7% from total annual revenue. Meanwhile, the lowest contribution is derived from dry season with 23.7% from total annual revenue. Considering this condition, it can be said that dry season, when the fish price is high, does not give a considerable revenue contribution. It means that in coping fisheries business for 10 GT business scale, the increase of production volume factor is more valuable in contributing to revenue compared to the increase of fish price factor. Revenue structure of coping fisheries business for 10 GT business scale is presented in Table Table Revenue structure of coping fisheries business in 10 GT business scale No Fishing Season Contribution (%) 1 Peak season 37,6 2 Moderate season 38,7 3 Dry season 23,7 Total Revenue 100,0 Final Report Page 98

109 2) Trolling Line Fisheries Business Trolling line fisheries business revenue structure for 15 GT business scale is mostly derived from peak season, namely 47.0% from total annual revenue. Meanwhile, the lowest contribution is derived from dry season with 7.0% from total annual revenue. Considering this condition, it can be said that dry season, despite the relatively high increase of fish price, clearly does not give a considerable revenue contribution. It means that in trolling line fisheries business for 15 GT business scale, the increase of production volume factor is highly valuable in contributing to revenue compared to the increase of fish price factor. Revenue structure of trolling line fisheries business for 15 GT business scale is presented in Table Table Revenue structure of trolling line fisheries business in 15 GT business scale No Fishing Season Contribution(%) 1 Peak season 47,0 2 Moderate season 46,0 3 Dry season 7,0 Total Revenue 100,0 3) Portable Trap Fisheries Business Portable trap fisheries business revenue structure for 15 GT business scale is mostly derived from peak season, namely 48.0% from total annual revenue. Meanwhile, the lowest contribution is derived from dry season with 24.0% from total annual revenue. Considering this condition, it can be said that dry season, despite the relatively high increase of fish price, clearly does not give a considerable revenue contribution. It also means that in portable trap fisheries business for 15 GT business scale, the increase of production volume factor is highly valuable in contributing to revenue compared to the increase of fish price factor. Revenue structure of portable trap fisheries business for 15 GT business scale is presented in Table Table Revenue structure of portable trap fisheries business in 15 GT business scale No Fishing Season Contribution (%) 1 Peak season 48,0 2 Moderate season 28,0 3 Dry season 24,0 Total Revenue 100,0 Final Report Page 99

110 4) Gillnet Fisheries Business Gillnet fisheries business revenue structure for 2 GT business scale is mostly derived from peak season, namely 78.4% from total annual revenue. Meanwhile, the lowest contribution is derived from dry season with 7.0% from total annual revenue. Considering this condition, it can be said that dry season, despite the relatively high increase of fish price, clearly does not give a considerable revenue contribution. It means that in gillnet fisheries business for 2 GT business scale, the increase of production volume factor is highly valuable in contributing to revenue compared to the increase of fish price factor. Revenue structure of gillnet fisheries business for 2 GT business scale is presented in Table Table Revenue structure of gillnet fisheries business in 2 GT business scale No Fishing Season Contribution (%) 1 Peak season 78,4 2 Moderate season 16,4 3 Dry season 5,2 Total revenue 100,0 5) Cantrang Fisheries Business Cantrang fisheries business revenue structure for 20 GT business scale is mostly derived from peak season, namely 46.0% from total annual revenue. Meanwhile, the lowest contribution is derived from dry season with 15.0% from total annual revenue. Considering this condition, it can be said that dry season, despite the relatively high increase of fish price, clearly does not give a considerable revenue contribution. It means that in cantrang fisheries business for 20 GT business scale, the increase of production volume factor is considerately important in contributing to revenue compared to the increase of fish price factor. Revenue structure of cantrang fisheries business for 20 GT business scale is presented in Table Table Revenue structure of cantrang fisheries business in 20 GT business scale No Fishing Season Contribution (%) 1 Peak season 46,0 2 Moderate season 39,0 3 Dry season 15,0 Total Revenue 100,0 Final Report Page 100

111 6) Pole and Line Fisheries Business Pole and line fisheries business revenue structure for 35 GT business scale is mostly derived from peak season, namely 61.0% from total annual revenue. Meanwhile, the lowest contribution is derived from dry season with 4.8% from total annual revenue. Considering this condition, it can be said that dry season, despite the relatively high increase of fish price, clearly does not give a considerable revenue contribution. It means that in pole and line fisheries business for 35 GT business scale, the increase of production volume factor has an important role in contributing to revenue compared to the increase of fish price factor. Revenue structure of pole and line fisheries business for 35 GT business scale is presented in Table Table Revenue structure of pole and line fisheries business in 35 GT business scale No Fishing Season Contribution (%) 1 Peak season 61,0 2 Moderate season 34,3 3 Dry season 4,8 Total Revenue 100, Capture Fisheries Business Cost Structure Cost structure for every capture fisheries business is different, depends on the fishing methods and fishing gears used. A more active fishing gears operation will have a greater cost component percentage, especially for fuel cost component, and vice versa. The number of fishermen and fishermen salary also influence the cost structure for every capture fisheries business. 1) Coping Fisheries Business In a 10 GT coping fisheries business, the cost component with the greatest percentage is diesel fuel, namely 39.37% from total cost incurred in every fishing activity. The next component with a considerable percentage is work force salary, namely 26.25% from total unfixed cost. Meanwhile, component with the lowest percentage is cost for ice, namely 0.26% from total unfixed cost (Table ). Table Cost structure of coping fisheries business in 10 GT business scale in 2012 No Unfixed Cost Component Percentage (%) 1 Diesel fuel 39,37 2 Oil 13,12 3 Logistic 21,00 4 Ice 0,26 Final Report Page 101

112 5 Worker salary 26,25 2) Trolling Line Fisheries Business Trolling line is an active fishing gear, thus the cost structure for diesel fuel component in trolling line fisheries business with 15 GT business scale could reaches 61.45% from total of operational cost incurred in one fishing trip. Logistic cost for fishermen in every fishing trip needs 35.12% from total of operational cost. Meanwhile, component with the lowest cost percentage is oil, namely only 3.43% from total of operational cost (Table ). Table Cost structure of trolling line fisheries business in 105GT business scale in 2012 No Unfixed Cost Component Percentage (%) 1 Diesel fuel 61,45 2 Oil 3,43 3 Logistic 35,12 3) Portable Trap Fisheries Business Portable trap fisheries business in 15 GT business scale spends a lot of cost for diesel fuel for every fishing trip. Diesel fuel spends 43.67% from total of operational cost. Fishermen salary for portable trap fisheries business needs 13.10% from total of operational cost. Component with the lowest cost percentage is ice, namely only 4.37% from total of operational cost. Table presents the percentage for each cost components in a 15 GT portable trap fisheries business. Table Cost structure for portable trap fisheries business in 15 GT business scale in 2012 No Unfixed Cost Component Percentage (%) 1 Diesel fuel 43,67 2 Oil 21,40 3 Logistic 17,47 4 Ice 4,37 5 Worker salary 13,10 Final Report Page 102

113 4) Gillnet Fisheries Business Gillnet is a passive fishing gear, but in the cost structure, fuel component in gillnet fisheries business with 2 GT business scale still holds the biggest portion of cost percentage with 72.26% from total of operational cost incurred in each fishing trip. The next biggest portion of cost is for logistic cost which needs 16.06% in every fishing trip. Meanwhile, component with the lowest cost percentage is oil, namely only 4.46% from total of operational cost (Table ). Table Cost structure of gillnet fisheries business in 15 GT business scale in 2012 No Unfixed Cost Component Percentage (%) 1 Diesel fuel 72,26 2 Oil 4,46 3 Ice 7,23 4 Logistic 16,06 5) Cantrang Fisheries Business In a 20 GT cantrang fisheries business, fishermen salary and bonus are components with the greatest cost percentage, namely 46.38% from total of operational cost. Meanwhile, fuel component needs 37.17% from total of operational cost. Components with the lowest cost percentage in cantrang fisheries business are licensing and sea offering (sedekah laut), namely 0.03% and 0.14% from total of operational cost (Table ). Table Cost structure of cantrang fisheries business in 20 GT business scale in 2012 No Unfixed Cost Component Percentage (%) 1 Diesel fuel 37,17 2 Consumption 12,48 3 Worker salary and bonus 46,38 4 Licensing fee 0,03 5 Sea offering 0,14 6 Auction cost 3,81 6) Pole and Line Fisheries Business In a 35 GT pole and line fisheries business, fishermen salary is also a component with the greatest cost percentage, namely 58.3% from total of operational cost. The second greatest portion for this fisheries business is for bait, namely 22.7%. It is followed by fuel or diesel, namely 10.9% from total of operational cost. Components with the Final Report Page 103

114 lowest cost percentage in pole and line fisheries business are oil and ice, namely 0.6% and 1.5% from total of operational cost (Table ). Table Cost structure of pole and line fisheries business in 35 GT business scale in 2012 No Unfixed Cost Component Percentage (%) 1 Diesel fuel 10,9 2 Oil 0,6 3 Ice 1,5 4 Logistic 6,1 5 Bait 22,7 6 Worker salary 58,3 4.2 Cultivation Fisheries Business Cultivation Fisheries Business Profile Cultivation fisheries business has an enormous opportunity for development, with world market target total of US$150 billion in 2010 (FAO, 2012). Cultivation fisheries business is not only to fulfill domestic food needs, but also contributes significantly to world s food provision. Cultivation fisheries business is a relatively profitable business, and is able to absorb a lot of work force. Cultivation fisheries business since the last two decades has and in the future will play an increasingly important role in fulfilling mankind food needs in line with the increase of population and increase of society s purchase ability. The magnitude of cultivation fisheries business in general can be divided according to business scale size category and technology used category. Business scale category of cultivation fisheries business is related to the total area used, while the technology category is based on intensive, semi-intensive, and traditional technology systems. Commodities determination in cultivation fisheries business should be based on the current market demands. Meanwhile, technology application can be adjusted to the condition of land used. Aquaculture commodities are species or fish types (in the general meaning) which are produced in aquaculture activities, and become traded goods/products. There are 465 species which consist of 28 and 107 families for water plants and animals in the cultivated aquatic organism catalog, but only 20 to 25 species that are commercially cultivated in large quantities. In fact, all aquatic organisms (more than types of fish in the world) can be cultivated. Final Report Page 104

115 The main commodities in Indonesian cultivation fisheries are prawns, groupers, seaweeds, tilapias, goldfishes, milkfishes, snappers, patins, catfishes, and carps. According to the data processed from Cultivation Fisheries Statistic (2011), commodities with production value decline during are groupers (-49%), tilapias (-8%) and carps )-8%). The highest positive growths of production value according to cultivation commodities in are reached by catfishes with 43%, milkfishes (38%), patins (33%), other fishes (22%), goldfishes (12%), prawns (3%) and snappers with 2%. The categorization of cultivation fisheries business is presented in the following Table. Table The categorization of aquaculture commodities according to morphological characters and habitat along with several examples of known commodities Habitat Karakter Morfologi Ikan Udang Moluska Ekinodermata Alga Fresh water goldfish, carp, tilapia, Mujair, Patin, catfish, Tambakan, Bawal lobster Cherax prawn Sea barnacle - Ornamental plants Brackish water Milkfish, mullet Tiger prawn, Vannamei prawn, blue shrimp, mangrove crab Sea Water grouper, Kakap Putih, cod, Kobia, Napoleon (Source : Effendi, 2011) Lobster Green mussel, pearl oyster, Abalone Sea urchin, sea cucumber Euchema cottonii, Gracilaria sp. Chlorella sp. Total of cultivation production value in 2007 is Rp , in 2008 is is Rp ,-, in 2009 is Rp ,-, in 2010 is Rp ,-, and in 2011 is Rp According to the data processed from Cultivation Fisheries Statistic (2011) book, the number of Cultivator FHs during experienced increase of 18% or 4.4% per year. The number of cultivator FHs in 2007 is FHs and in 2011 the number reached FHs. The only cultivation FHs that experienced decrease is Wetland Cultivation FHs, namely -6% decrease during The distribution of fish cultivator FHs according to island shows that the greatest number of cultivator FHs is Fishpond Cultivation FHs in Java Island, while Wetland Cultivation FHs in Maluku-Papua is the FHs with the lowest number (Cultivation Fisheries Statistic, 2011). The number and type Final Report Page 105

116 of companies operating in aquaculture field in Indonesia from 2007 to 2010 are presented in Table Table The number of Fisheries Cultivation Companies according to Cultivation Type, Company according to Cultivation Type Pond cultivation Seeding Freshwater Marine Amount (Source : Cultivation Fisheries Statistic, 2011) Cultivation Fisheries Business Revenue Structure The greatest percentage of vannamei prawn production is for food cost, namely 57% from total of production cost. Vannamei prawn business funding for 3 (three) swaths of m 2 /planting season is presented in the following Table. Table Vannamei prawn business funding for 3(three) swaths of m 2 /planting season No Description Amount Unit Price(Rp) Amount % (Rp) Cost 1 5 people worker 25 OB Seed ekor Fish feed kg Diesel energy liter Raw material 1 paket Land rent 1 paket Total cost Total harvest kg Gross profit (Source: processed from primary data) The greatest percentage of milkfish production is for food cost, namely 61% from total of production cost. Milkfish business funding is presented in Table Table Milkfish business funding / Ha/Planting Season No Description Amount Unit Price(Rp) Amount (Rp) % Cost 1 1 person worker 6 OB Seed ekor Fish feed kg Fuel 100 liter Other raw material 1 paket Final Report Page 106

117 6 Land rent 1 paket Total cost Total harvest kg Gross profit (Source: processed from primary data) The greatest percentage of patin fish production is for food cost, namely 75% from total of production cost. Patin fish business funding is presented in the following Table. Table Patin fish business funding /swath of 50 m 2 floating net / Planting Season No Description Amount Unit Price Amount % (Rp) (Rp) Cost 1 1 person worker 8 OB Seed 130 kg Fish feed kg Fuel 50 liter Other raw material 1 paket Depreciation 1 paket Total cost Total harvest kg Gross profit (Source: processed from primary data) The greatest percentage of tilapia fish production is for food cost, namely 77% from total of production cost. Tilapia fish business funding is presented in the following Table. Table Tilapia fish business funding /swath of 100m 2 /planting season No Description Amount Unit Price Amount (Rp) % Cost (Rp) 1 1 person worker 4 OB Seed ekor Fish feed kg Fuel 15 liter Other raw material 1 paket Depreciation 1 paket Total cost Total harvest 900 kg Gross profit (Source: processed from primary data) Final Report Page 107

118 The greatest percentage of catfish production is for food cost, namely 77% from total of production cost. Catfsih business funding is presented in the following Table. Table Catfish business funding / swath of 50 m 2 / planting season No Description Amount Unit Price (Rp) Amount (Rp) % Cost 1 1 person worker 3 OB Seed ekor Fish feed kg Fuel 20 liter Other raw material 1 paket Depreciation 1 paket Total cost Total harvest kg Gross profit (Source: processed from primary data) Cultivation Fisheries Business Cost Structure The cost structure for every cultivation fisheries business is different according to the cultivation types. Table Cultivation Fisheries Business Cost Structure Description Fishpond Pond Marine Public waters Value % Value % Value % Value % cost cost cost cost Production value Production cost , , , ,3 1. Fish seed , , , ,62 2. Fish breed , , , ,04 3. Fertilizer , , , ,13 a. Urea/Za 946 0, , , ,05 b. NPK 29 0, ,11 9 0, ,12 c. KCL 16 0, , , d. ISP(SP36) 555 0, , , e. Lime 174 0, , , ,31 f. Compost , , , ,82 g. Other fertilizer 128 0, , , Fish feed , , , ,13 a. Pelet , , , ,18 b. Fresh fish 816 0, , , ,37 c. Dedak , ,4 66 0, ,25 Final Report Page 108

119 d. Artemia 174 0,1 44 0, ,08 e. Other feed , , , ,25 5. Pesticide/Medicine/etc , , , ,67 a. Pesticide/medicine 613 0, , , ,26 b. Fuel/electricity/water 870 0, , , ,45 c. Land maintenance , , , ,8 d. Tax, etc 376 0, , , ,06 e. Interest, indirect tax , , , ,18 f. Transportation , , , ,56 g. Other 931 0, , , ,37 6. Worker salary , , , ,71 a. Paid worker salary , , , ,37 b. Unpaid worker salary , , , ,76 (Spurce : Pusdatin, 2011) Final Report Page 109

120 V. CHARACTERISTICS OF FISHERIES HOUSEHOLD 5.1. Fisherman Household Fisherman Household Total Membership Household or family total membership is frequently called family size. Household total membership is the amount of family or household dependents which must be funded by the fisherman household. House membership is typically consists of head of household (father), mother, children and other household members who live in the house and eat from the same kitchen. Household total membership is an important variable to note because according to many research results, family size has a significant influence on family welfare (Muflikhati, 2010; Fahey et al., 2012). Family or household with lesser dependents has a greater chance to be welfare than family or household with more dependents. The result of a research conducted by Ministry of Marine and Fisheries with Statistic Agency 2011 shows that during three years period, fisherman household total membership average had decreased from 4.67 in 2007 to 4.55 in 2010 (Figure 5.1.1). Despite the slight decrease, it illustrates a relieving condition. It is expected that in the future years fisherman communities awareness of the importance of small family will increase, so that fisherman families are no longer having many children. A greater number of children implies a greater amount of burden to be borne by the family. In order to foster high quality children, parents should fulfill child s daily life needs that are not only in the form of physical matter or money but also child s spiritual or psychological needs in the form of nurturance. Lesser amount of child will give an opportunity for parents to give good physical matters and nurturance time in order to foster high quality human resources. Final Report Page 110

121 Besar keluarga (orang) 4,67 4, Figure Indonesian fisherman family size average in 2007 and 2010 In contradiction, Saptanto et al. (2011) on their research in Sibolga, North Sumatera found that the average of fisherman household size is categorized as a big family due to the average membership of 7 people. This result contradict the result from Ministry of Marine and Fisheries and Statistic Agency 2011 which states that the average number of fisherman household members in North Sumatera coastal areas is 5.11 people in 2007 and 4.98 people in Families with 5 people as members categorized as medium sized family. Table 5.1 shows the average number of fisherman FHs total membership in every province. FHs with the lowest average membership are FHs in Yogyakarta and South Sulawesi with less than 4 members or categorized as small family. Meanwhile, fisherman FHs in 31 out of 33 provinces in Indonesia have average membership of 4 to 6 people. Provinces with the most FH members are West Sulawesi (5.70), Maluku (5.56), North Maluku (5.31), West Sumatera (5.20) and East Nusa Tenggara (5,16). Table Average numbers of Fisheries Household (FH) Membership according To Provinces in 2007 and 2010 No. Province Household members in 2007 Household members in Aceh North Sumatera West Sumatera Riau Jambi South Sumatera Bengkulu Lampung Bangka Belitung Final Report Page 111

122 10. Riau Archipelago DKI Jakarta West Java Central Java DI Yogyakarta East Java Banten Bali West Nusa Tenggara East Nusa Tenggara West Kalimantan Central Kalimantan South Kalimantan East Kalimantan North Sulawesi South Sulawesi Central Sulawesi Southeastern Sulawesi 28. Gorontalo West Sulawesi Maluku North Maluku West Papua Papua Indonesia (Source:Ministry of Marine and Fisheries & Statistic Agency, 2011) Education Education is an indicator of developmental success, especially to measure human resource quality. Fisherman head of household s education level in Indonesia is considerably low. It can be seen from the last degree of education in Figure Eventhough the percentage of middle school education experienced an increase (13.1% in 2007 to 13.92% in 2010), the majority still holds elementary school education level (more than two thirds). Final Report Page 112

123 ,59 66,01 18,31 20,07 13,10 13, SD SMP SMA Figure Percentage of fisherman household according to head of household s education level in 2007 and Fishermen Household s Income and Expense a. Household Income Household income is the sum of all income received by fisherman and his/her family members, which is gained from fishing activities or other activities. Secondary data on fisherman household income in Indonesia is not available. According to various research results, there is a significant relationship between household income and household expense. Therefore, to measure poverty level, Statistic Agency uses household income approach. Fisherman households are generally depend their life on fishing activities. It is seen from the extent of fishing activities contribution on household income. Fishing activities give more than 60 percent contribution on household income (Table 5.1.4). Fisherman household that is most dependent on fishing business activities is FHs in Riau Archipelago, followed by fisherman FHs in Gorontalo. Fishing business contributes 90.66% on fisherman household income in Riau Archipelago, and 88.19% in Gorontalo. Riau Archipelago province is the only province with more than 90% contribution on fisherman household income. Other provinces with contribution of 80-90% on household income are: Aceh, Riau, Bangka Belitung, East Nusa Tenggara, East Kalimantan, Southeastern Sulawesi, Central Sulawesi, West Sulawesi, Gorontalo, Maluku and North Maluku. Meanwhile, provinces with less than 80% contribution on fisherman household income are: Jakarta, Central Kalimantan, North Kalimantan, North Sulawesi, Papua and West Papua (Table 5.1.2). Final Report Page 113

124 Table Fishing Activities Contribution on Household Income No. Province Contribution on Income(%) Fishing Other 1. Aceh 83,95 16,05 2. Riau 84,82 15,18 3. Jambi 69,15 30,85 4. Bangka Belitung 84,79 15,21 5. Riau Archipelago 90,66 9,34 6. DKI Jakarta 78,13 21,87 7. East Nusa Tenggara 83,05 16,95 8. Central Kalimantan 77,58 22,42 9. East Kalimantan 85,10 14,9 10. North Sulawesi 76,64 23, Central Sulawesi 86,03 13, Southeastern Sulawesi 86,56 13, Gorontalo 88,19 11, West Sulawesi 83,29 16, Maluku 83,74 16, North Maluku 84,26 15, West Papua 79,64 20, Papua 77,37 22,63 (Source:Ministry of Marine and Fisheries & Statistic Agency 2011) In 2012, Marine and Fisheries Social Economic Research Center through National Marine and Fisheries Panel Research gives an analysis result on capture fisheries household income structure in several locations. The analyzed capture fisheries household income is derived from fisheries and non-fisheries sector income. Income from fisheries sector is derived from employments such as fisherman, fisheries labor, and fisheries product processor, while income from non-fisheries sector is derived from employments such as trader, entrepreneur, industrial labor, and transportation service provider (ojeg). The analysis result is then categorized into 2 categories, namely intermediate scale fisheries household and small scale fisheries household. The following is the illustration of fisherman household income structure for each category. 1) Intermediate Scale Capture Fisheries Household Location being analyzed is Bitung City. Intermediate scale capture fisheries households are distinguished based on the ownership status, namely: boat owner and captain or boat crew (work force). According to research result, monthly average income of intermediate fisheries household in Bitung City is not constant. The amount of income gained by fisheries household is highly influenced by fishing season. Income percentage Final Report Page 114

125 from the biggest fishing sector for boat owner occurred in April and August, or during fishing season. Meanwhile, for captain/boat crew, the income is relatively equal all year. Income contribution from fisheries sector on intermediate scale boat owner fisheries household total income is 78.1%, while on captain/boat crew household is 66.19%. It shows that income from fisheries sector is still the main source that influences intermediate scale capture fisheries household in Bitung City. Household welfare is still depends on the existing fish resource condition. The details for intermediate scale capture fisheries household per month in Bitung City are presented in Table Table Intermediate Scale Capture Fisheries Household Income per Month in Bitung City according to Ownership Status in 2012 Owner Captain/Fishermen Fisheries Non-Fisheries Fisheries Non Fisheries Month Total Total Value (%) Value (%) (Rp/Mth) Value (%) Value (%) (Rp/Mth) (Rp/Mth) (Rp/Mth) (Rp/Mth) (Rp/Mth) January ,6 634,615 1, ,174 6,05 219,130 2,89 678,304 February ,6 728,462 1, ,109 6,97 178,261 2,35 707,370 March ,6 461,538 0, ,000 3,91 146,522 1,93 443,522 April , , ,365 7,77 172,826 2,28 762,191 May ,2 715,385 1, ,435 3,83 133,696 1,76 424,131 June , , ,609 3,07 336,739 4,44 569,348 July ,9 753,846 1, ,565 5,53 339,130 4,47 758,695 August ,6 907,692 1, ,435 6,99 183,913 2,42 714,348 September , , ,461 5,52 213,777 2,82 632,238 * October* , , ,461 5,52 213,777 2,82 632,238 November* , , ,461 5,52 213,777 2,82 632,238 December* , , ,461 5,52 213,777 2,82 632,238 Total , , , , Description : * is the average annual value from January August. Source: National Marine and Fisheries Panel Research - Marine and Fisheries Social Economic Research Center, ) Small Scale Capture Fisheries Household Location being analyzed is Sibolga City, Sambas District, Cirebon District, and Sampang District. In general, small scale capture fisheries household income from fisheries sector is not constant for each month (Table ). Household income from fisheries sector is highly influenced by fishing season, fish sell price, weather, and the amount of fishing trip. Typically, during fishing season which is accompanied by production increase, fish price will decline; and vice versa, during fish dry season, fish price will be higher. Final Report Page 115

126 In small scale capture fisheries household in Sibolga City, household income structure has a considerable difference between fisheries and non-fisheries. Income proportion from fisheries is 70.77# (Rp /year) and from non-fisheries is 29.23% (Rp /year). Meanwhile, in small scale capture fisheries household in Sambas district, the household income structure is also shows considerable difference between fisheries and non-fisheries, with 79% (Rp /year) income contribution from fisheries sector and 21% (Rp /year) from non-fisheries sector. In small scale capture fisheries household in Cirebon district, household income structure has a considerable difference between fisheries and non-fisheries, with 92.2% income contribution from fisheries sector and 7.8% from non-fisheries sector. The total amount of respondent s household income in 2012 is Rp /year. It is also the case with capture fisheries household in Sambas district, the household income structure shows considerable difference between fisheries and non-fisheries, with 98.7% (Rp /year) income contribution from fisheries sector and 1.3% (Rp /year) from non-fisheries secto. Based on the aforementioned result, it can be said that income from fisheries sector on small scale capture fisheries household is still the main source that highly influenced fisheries household income. Therefore, the welfare of fisherman household with small scale business is highly depends on the condition of existing fish resource. Final Report Page 116

127 Table Small Scale Capture Fisheries Household Income per Month in 2012 Month Kota Sibolga Kabupaten Sambas Kabupaten Cirebon Kabupaten Sampang Fisheries Non Fisheries Fisheries Non Fisheries Fisheries Non Fisheries Fisheries Non Fisheries Value (Rp/Mth) (%) Value (Rp/Mth) (%) Value (Rp/Mth) (%) Value (Rp/Mth) (%) Value (Rp/Mth) (%) Value (Rp/Mth) (%) Value (Rp/Mth) (%) Value (Rp/Mth) January ,57 863,563 2, , ,7 183,250 0, , ,1 February ,03 868,401 2, , ,6 215,750 0, , ,1 March ,06 941,103 2, , ,1 276,250 0,8 361,974 2, ,1 April ,93 976,886 2, , ,0 0 0, , ,1 May * 5,90* * 2,44* , ,4 255,250 0, ,9 - June * 5,90* * 2,44* 892, , ,5 241,500 0, , ,1 July * 5,90* * 2,44* 843, , ,8 191,000 0, * 8,2* * 0,1* August * 5,90* * 2,44* , ,3 268,500 0, * 8,2* * 0,1* Septembe * 5,90* * 2,44* , * 8,0* * 0,7* * 8,2* * 0,1* r October * 5,90* * 2,44* , * 8,0* * 0,7* * 8,2* * 0,1* November * 5,90* * 2,44* , * 8,0* * 0,7* * 8,2* * 0,1* December * 5,90* * 2,44* , * 8,0* * 0,7* * 8,2* * 0,1* Total , , , , , ,3 Description : - Figures with * on Sibolga City are the average figures from January April. - Figures with * on Cirebon City are the average figures from January August. - Figures with * on Sampang City are the average figures from January July Source: National Marine and Fisheries Panel Research - Marine and Fisheries Social Economic Research Center, 2012 (%) Final Report Page 117

128 b. Fisherman Household Expense The general composition of fisherman household is still dominated by food expense, namely about two thirds from total expense. Figure 5.5 shows that the average expense per capita on fisherman household experienced increase from Rp in 2007 to Rp in According to Engel law, household with greater expense will decrease the proportion for food expense. It is also found in fisherman household. By the increase of fisherman household per capita income in 2010, the food expense proportion declines from 67.4% in 2007 to 66.7% in ,6% 67,4% 33,3% 66,7% Bukan pangan Pangan Figure Amount and proportion of food and non-food expenses in fisherman household Five provinces with the greatest average expense per capita fisherman household are Jakarta, East Kalimantan, Banten, and Bangka Belitung. Fisherman household in each provinces has average expense per capita greater than Rp /month. Meanwhile, five provinces with the lowest average expense per capita are Southeastern Sulawesi, Central Sulawesi, East Nusa Tenggara, West Sulawesi, and South Sulawesi. Specifically in Southeastern Sulawesi, the average expense per capita of fisherman household is lesser than Rp per month (Table 5.1.5). Table Average expense per capita and food expense percentage in fisherman household and poverty threshold according to provinces in 2010 Final Report Page 118

129 No. Province Expense per capita (Rp/Month) Food expense percentage (%) Poverty threshold (PT) Ratio expense per capita-pt 1. Aceh , ,62 2. North Sumatera , ,77 3. West Sumatera , ,94 4. Riau , ,55 5. Jambi , ,62 6. South Sumatera , ,69 7. Bengkulu , ,26 8. Lampung , ,41 9. Bangka Belitung , , Riau Archipelago , , DKI Jakarta , , West Java , , Central Java , , DI Yogyakarta 58, , East Java , , Banten , , Bali , , West Nusa Tenggara , , East Nusa Tenggara , , West Kalimantan , , Central Kalimantan , , South Kalimantan , , East Kalimantan , , North Sulawesi , , South Sulawesi , , Central Sulawesi , , Southeastern , ,97 Sulawesi 28. Gorontalo , , West Sulawesi , , Maluku , , North Maluku , , West Papua , , Papua , ,41 Indonesia , ,98 (Source: Ministry of Marine and Fisheries & Statistic Agency, 2011) The amount of expense per capita is able to indicate community welfare. However, the figures cannot be compared between regions, because living expense for each region is different. Therefore, to compare prosperity level for each region, the amount of regional s living expense is used as an approach which is represented by poverty threshold issued by Statistic Agency. Final Report Page 119

130 If compared to the poverty threshold established by the Statistic Agency in 2010 for village areas, namely Rp , then the average of fisherman household in Indonesia has expense per capita above the poverty threshold and cannot be categorized as poor. However, as long as the expense per capita does not reach one half or two times of the poverty threshold, the household is still vulnerable and can fall to poverty if the price of consumption goods fluctuated or increased. Table indicates that fisherman households which are relatively safe from poverty are the ones with expenses per capita two times of the poverty threshold. Thus, there are 12 (twelve) provinces with considerably welfare fisherman households, namely: Banten, Riau Archipelago, Bangka Belitung, Bali, Bengkulu, Central Java, East Kalimtan, Gorontalo, South Kalimantan, West Java, West Sulawesi, and East Nusa Tenggara. Provinces with fisherman household expense per capita less than one half of the poverty threshold are only two provinces. The two provinces are Lampung and Papua with average expense per capita of 1.41 times of the poverty threshold. The average expense per capita of fisherman household is probably higher compared to the existing data. It is based on the result of field observation and interview with fishermen in Central Java and East Java which said that not all of them give their income to their wives. It is not seldom that after go back from the sea they spend their money for their personal entertainment such as drinking or eating outside, watching art performance ( nyawer ), etc, which don t count as household expenses. Even buying alcohol is no longer a taboo thing to do, due to the cold, harsh and boring life on the sea which needs stamina and entertainment so that they can keep feel energized to do their works Fish Cultivator Household Fish Cultivator Household Total Membership Fish cultivator households averagely have 4 to 5 household members (family size). There is a decline of average number of fish cultivator household members during three years (2007 to 2010 period). Figure shows that in 2007 fish cultivator household had a 4.57 family size and declined to 4.51 in It indicates that fish cultivator already aware of the importance of a small family, so that in that particular three years there is a decline of birthrate. Even though the family size on fish cultivator household had decreased, if categorized according to BKKBN, fish cultivator families are still categorized in medium sized family (has more than four to six family members). If the awareness about small Final Report Page 120

131 family keeps on increasing, it is expected that fish cultivator household will has averagely four family members (small family). 4,57 Besar keluarga (orang) 4, Figure Fish Cultivator Household Membership in 2007 and 2010 Compared to fisherman household, the average membership of fish cultivator household is lower. In 2007, the average membership of fisherman household is 4.67 while fish cultivator is only It is also similar in 2010, when the average membership of fisherman household is 4.55 while fish cultivator is According to provinces, cultivator households with the lowest membership are found in Yogyakarta and Jakarta. The average memberships of fish cultivator household in both provinces are categorized as small families, due to less than 4 household members. The average membership of fish cultivator household in Yogyakarta is 3.13 and Jakarta is 3.56 (Table 5.2.1). Meanwhile, province with the greatest average number of fish cultivator household members is Maluku. Fish cultivator households in Maluku have an average number of 6.27 or categorized as big family. The condition shows that fisherman household and fish cultivator household have different characteristics. Table Average Numbers of Fish Cultivator Fisheries Household (FH) Membership according to Provinces in 2007 and 2010 No. Province Household members in 2007 Household members in Aceh 5,16 4,85 2. North Sumatera 4,99 4,87 3. West Sumatera 4,89 4,28 4. Riau 4,71 4,35 5. Jambi 4,74 4,47 Final Report Page 121

132 6. South Sumatera 4,66 4,96 7. Bengkulu 4,26 4,37 8. Lampung 4,84 4,43 9. Bangka Belitung 4,77 4, Riau Archipelago 4,41 4, DKI Jakarta 4,87 3, West Java 4,49 4, Central Java 4,12 4, DI Yogyakarta 3,69 3, East Java 4,17 4, Banten 4,79 5, Bali 4,26 4, West Nusa Tenggara 4,08 4, East Nusa Tenggara 5,22 4, West Kalimantan 4,96 4, Central Kalimantan 4,06 4, South Kalimantan 4,56 4, East Kalimantan 4,62 4, North Sulawesi 4,27 4, South Sulawesi 4,27 4, Central Sulawesi 5,21 5, Southeastern 5,14 4,73 Sulawesi 28. Gorontalo 4,42 5, West Sulawesi 4,65 5, Maluku 8,31 6, North Maluku 4,95 4, Papua 4,80 5, West Papua 4,30 5,24 Indonesia 4,57 4,51 (Source: Ministry of Marine and Fisheries & Statistic Agency 2011) Fish Cultivator Household Education The majority of fish cultivator head of household has low education level. It is seen in Figure which shows that the percentage of head of household with elementary school education or below is percent in Meanwhile, head of households with middle school education are only percent. Therefore, percent of fish cultivator head of household with low education level (elementary education). It also means that only one fifth or less than 80 percent with middle education. Final Report Page 122

133 70 68,18 67, ,13 17,69 15,31 16, SD SMP SMA Figure Fish cultivator household proportion according to the head of household s education level One s education level is known to influence one s mind and act. Ones with higher education are able to access information and technology which surely will be very helpful in running business. It is also the case with fish cultivation business. Cultivators with formal or informal high education have higher chance to improve productivity by the use of technology or more effective and efficient production means. It clearly improves production and increases business revenue. Therefore, one indirect way to improve fisherman and fish cultivator income is through education, both formal and informal Fish Cultivator Household Income and Expense Table shows the average of fish cultivation business contribution on fish cultivator household income in various Indonesian provinces. From eighteen studied provinces, fish cultivation business gives 63.65% to 89.02% contribution. It shows that the average of fish cultivator households still depend their lives on fish cultivation business. Cultivation business contribution which is less than 100% also proves that the business is not the only income source of fish cultivator household. In several provinces, other businesses even contribute more than 30 percent on fish cultivator household income. Provinces with fish cultivation businesses contributing less than 70 percent on cultivator household income average are Bangka Belitung, Jakarta, and Bengkulu. Final Report Page 123

134 Meanwhile, in East Kalimantan, Southeastern Sulawesi, and Gorontalo, fish cultivation business contribution on household income is more than 80 percent. Table Fisheries Sector Contribution on Fish Cultivator Household Income per Province No. Province Percentage (%) Year Source 1. Aceh 76, MMF and SA 2. Riau 64, MMF and SA 3. Bengkulu 64, MMF and SA 4. Bangka Belitung 63, MMF and SA 5. Riau Archipelago 79, MMF and SA 6. DKI Jakarta 64, MMF and SA 7. East Nusa Tenggara 72, MMF and SA 8. Central Kalimantan 69, MMF and SA 9. East Kalimantan 89, MMF and SA 10. North Sulawesi 68, MMF and SA 11. Central Sulawesi 74, MMF and SA 12. Southeastern Sulawesi 82, MMF and SA 13. Gorontalo 81, MMF and SA 14. West Sulawesi 73, MMF and SA 15. Maluku 77, MMF and SA 16. North Maluku 72, MMF and SA 17. Papua 65, MMF and SA 18. West Papua 71, MMF and SA *MMF and SA :: Ministry of Marine and Fisheries & Statistic Agency Revenue from fish cultivation business is varied depends on the cultivation business conducted. The following is the analysis of fish cultivation business income conducted by Apriliani et al., (a) Freshwater Cultivation Analysis result on freshwater cultivator household conducted in Cianjur and Subang is presented in Table Table Freshwater fish cultivator household income in Cianjur and Subang in 2012 Source of Income Cianjur: Fisheries Non Fisheries Total Rp/year % Rp/year % Rp/year % Head of Household , , ,5 Wife , , ,8 Children 0, , ,7 Final Report Page 124

135 Other 0,0 0,0 0 0,0 Total , , ,0 Subang: Head of Household , , ,7 Wife , , ,1 Children , , ,2 Other 0 0,0 0 0,0 0 0,0 Total , , ,0 (Source: Aprilliani et.al. 2012) In general, families hang their lives on the head of household as the main breadwinner. In freshwater fish cultivator household in Cianjur, cultivation fisheries business gives 67.8% contribution on household income. This figure is smaller than cultivation business contribution in Subang which is 83.7%. In nominal terms, cultivator household income in Subang is also greater than in Cianjur. The amount of income from cultivation business is highly depends on the business scale, fish types, as well as technology used. Freshwater cultivation businesses in Cianjur are mostly floating net and keramba cultivations. The types of fish being cultivated are pomfret, tilapia and goldfish. (b) Brackishwater Cultivation Table shows that in Gresik, brackishwater cultivation business conducted by head of household still gives the biggest contribution on household income (62.4%). However, in Pangkep, fish cultivator household income is dominated by income from nonfisheries business. Brackishwater cultivation business in Pangkep only gives 16.2% contribution on household income. Meanwhile, fisheries activities in general contribute 29.3%. These fisheries activities include fishing and fish processing by the wives. The low income from milkfish cultivation business force the head of household to find other income from nonfisheries. Final Report Page 125

136 Table Brackishwater fish cultivator household income in Gresik and Pangkep in 2012 Source of Income Gresik: Fisheries Non Fisheries Total Rp/year % Rp/year Rp/year % Head of Household , , ,1 Wife , , ,1 Children , , ,2 Other , , ,6 Total , , ,0 Pangkep: Head of Household , , ,8 Wife ,1 0, ,1 Children , , ,1 Other ,1 0, ,1 Total , , ,0 (Source: Aprilliani et.al. 2012) (c ) Marine Cultivation Example by the research team of Marine and Fisheries Social Economic Research Center (Apriliani, et al., 2012), which is marine cultivator household, shows that the main income doesn t come from cultivation business. It is indicated by greater income contribution from non-fisheries sector, namely 70%. Meanwhile, fisheries sector (marine cultivation) income is less than 30%. Fisheries sector income is dominated by seaweed cultivation business and only a small part from fishing activities. Table Marine cultivation household income in Klungkung in 2012 Source of Income Fisheries Non Fisheries Total Rp/year % Rp/year Rp/year % Head of Household , , ,8 Wife , , ,4 Children , , ,6 Other ,2 0 0, ,2 Total , , ,0 (Source: Aprilliani et.al. 2012) Final Report Page 126

137 b. Household Expense Similar with fisherman household, the average expense per capita for fish cultivator household is also experience increase. In 2007, the average expense per capita increased from Rp to Rp in Based on the nominal during the three years, expense per capita increased by 32.85% or averagely 10.6% per year. The increase on expense per capita is caused by at least two things, namely increased consumption goods price or increased income. If the increase on expense per capita is caused by price increase, the increase on expense per capita doesn t indicate an increased welfare. However, if expense per capita is caused by increased income, it safe to say that there is an increase on welfare. This is in accordance with consumption function in economic law which states that the amount of consumption is determined by the amount of income. The amount of consumption change due to income change depends on the amount of marginal propensity to consume or the slope of consumption function. Engel Law states that a higher income level indicates a lower proportion for food expense. In the case of fish cultivator household, a 32.85% increase of expense per capita turns out to only decrease food expense proportion by 0.1%, namely from 65% in 2007 to 64.9% in The high proportion of food expense compared to non-food expense indicates that fish cultivator households are still on the level to fulfill their primary needs (Figure 5.2.3) ,1% 35,0% 64,9% 65,0% Bukan pangan Pangan Figure Amount and proportion of food and non-food expenses in fish cultivator household Final Report Page 127

138 The average proportions for food in fish cultivator household in each province are varied from 44.7% to 74.85%. Province with the lowest food expense proportion is Jakarta, while the highest are Banten and East Nusa Tenggara. It indicates that cultivator households in Jakarta are relatively more prosper than other provinces because they spend more proportion to fulfill non-food needs. Non-food needs consist of apparel, education, transportation, residential, etc. Compared to Indonesian poverty threshold in 2007, namely Rp , the average of fish cultivator households are not categorized as poor. It is similar in 2010, when the average of fish cultivator household expense is far above the poverty threshold for Indonesian village areas which is Rp Meanwhile, the average expense per capita for fish cultivator household has reached Rp or more than two times of the poverty threshold. Therefore, the average of fish cultivator households in Indonesia are safe from poverty. According to provinces, the average of fish cultivator households in Yogyakarta is categorized as middle economic or not poor category. It is indicated by the average of household expense which is already four times (4.22) the Yogyakarta s poverty threshold. Table Average expense per capita and percentage of food expense on fish cultivator household and poverty threshold according to provinces No. Province Expense per capita (Rp/Month) Food expense percentage (%) Poverty threshold (PT) Ratio expense per capita-pt 1. Aceh , ,51 2. North Sumatera , ,92 3. West Sumatera , ,14 4. Riau , ,40 5. Jambi , ,44 6. South Sumatera , ,86 7. Bengkulu , ,83 8. Lampung , ,30 9. Bangka Belitung , , Riau Archipelago , , DKI Jakarta , , West Java , , Central Java , , DI Yogyakarta , , East Java , , Banten , , Bali , , West Nusa Tenggara , ,83 Final Report Page 128

139 19. East Nusa Tenggara , , West Kalimantan , , Central Kalimantan , , South Kalimantan , , East Kalimantan , , North Sulawesi , , South Sulawesi , , Central Sulawesi , , Southeastern , ,08 Sulawesi 28. Gorontalo , , West Sulawesi , , Maluku , , North Maluku , , West Papua , , Papua , ,33 Indonesia , ,09 Final Report Page 129

140 Jan-08 Mar-08 Mei-08 Jul-08 Sep-08 Nop-08 Jan-09 Mar-09 Mei-09 Jul-09 Sep-09 Nop-09 Jan-10 Mar-10 Mei-10 Jul-10 Sep-10 Nop-10 Jan-11 Mar-11 Mei-11 Jul-11 Sep-11 Nop-11 Jan-12 Mar-12 Mei-12 Jul-12 Sep-12 Nop-12 Jan-13 Mar-13 Mei-13 Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN VI. ANALYSIS OF FISHERMAN TERMS OF TRADE (NTN) AND FISH CULTIVATOR TERMS OF TRADE (NTPi) 6.1. NTN Growth and Achievement Based on the data issued by Statistic Agency, fisheries terms of trade (fisherman terms of trade) is the combination of fisherman terms of trade and fish farmer terms of trade. Fisheries terms of trade, in period, is generally increased even though the level of increase is not constant for each period. Fisheries terms of trade index increased from in January 2008 to in May The highest index of fisheries terms of trade is reached in June 2011 with , and then slightly declined to in May Based on the constituent components, fisheries received index shifts higher than paid index. Received Price Index (IT) shifts from in January 2008 to in May Meanwhile, Paid Price Index (IB) shifts from in January 2008 to in May Household consumption index shifts from in January 2008 to in May The growth of terms of trade index is presented in Figure ,00 140,00 130,00 120,00 110,00 100,00 90,00 80,00 Nilai Tukar Perikanan (NT) Indeks diterima (IT) IT-penangkapan IT-Budidaya Indeks bayar (IB) Figure The growth of Fisheries and Its Components Terms of Trade The growth rate of terms of trade index s components shows that the received index coefficient of fisheries business operators is times higher than paid index coefficient Final Report Page 130

141 (IB) with On paid index component, household consumption index growth rate coefficient (0.0201) is higher than BPPBM index growth rate coefficient. Considering that the terms of trade index is based on the price dynamic, the inflation on household consumption goods is higher than the production cost component. Growth rate and fisheries terms of trade s components index coefficients are presented in the following Table. Table Growth rate and fisheries terms of trade s components index coefficients, January 2008-May 2013 Index Description Equation Coefficient of Determination Farmer Received Index y = 0,0180x - 596,39 R² = 0,9295 Capture y = 0,0188x - 629,05 R² = 0,9241 Cultivation y = 0,0138x - 439,51 R² = 0,9179 Farmer Paid Index y = 0,0149x - 476,89 R² = 0,9684 Household Consumption y = 0,0201x - 682,63 R² = 0,9860 Food Material y = 0,0238x - 825,31 R² = 0,9805 Processed Food y = 0,0207x - 709,81 R² = 0,9952 Residence y = 0,0198x - 669,21 R² = 0,9642 Clothing y = 0,0180x - 604,49 R² = 0,9927 Health y = 0,0127x - 393,88 R² = 0,9781 Education, recreation, sports y = 0,0106x - 311,02 R² = 0,9669 Transportation & Communication y = 0,0043x - 62,058 R² = 0,4205 BPPBM (Production cost-capital y = 0,0067x - 154,37 R² = 0,7911 goods) Seed y = 0,0018x + 30,212 R² = 0,5248 Medicine & Fertilizer y = 0,0098x - 281,44 R² = 0,8997 Transportation y = 0,0017x + 41,9 R² = 0,0597 Land rent, Tax & Other y = 0,0108x - 316,71 R² = 0,8961 Capital Goods Gain y = 0,0073x - 182,31 R² = 0,8962 Labor Salary y = 0,0048x - 85,433 R² = 0,8501 Farmer Terms of Trade y = 0,0021x + 20,489 R² = 0,3867 (Source : Statistic Agency Data, processed, 2013) Description : Based period : January 2008 X = time in monthly unit Based on the Table, paid index (IB) on household consumption, food material and processed food are components with the highest growth rate with coefficients of and Meanwhile, in production cost and capital goods change (BPPBM) Final Report Page 131

142 component, land rent, tax and others, as well as medicine and fertilizer are components with the highest growth rate with coefficient. However, the mentioned indices are the fisheries indices which are the combination of capture and cultivation fisheries. Contributions of each component (received and paid index) will be different between capture fisheries and cultivation fisheries. This contribution is illustrated in received index (IT) weight diagram which is stated in production weight diagram, as well as IB weight diagram which is stated in household commodity and production cost group weight diagram. These weight diagrams are created for each province, where it will be different for each province. As an example, IT weight diagram which is approached from cultivation and fishing production in Aceh shows that in capture fisheries the biggest weighing is mackerel tuna (13.96%) from 37 commodities and the smallest weighing is sea crab with 0.005%. It is different with Riau where prawn is the biggest weighing commodity with 29.08% from existing commodities. It is also the case with cultivation fisheries, in Aceh the biggest weighing from 7 commodities is prawn (66.48%) and the smallest is catfish (0.279%). Conversely, in Riau the biggest weighing from 6 commodities is patin with 0.283% (Ministry of Marine and Fisheries & Statistic Agency, 2011). Paid index (IB) component on capture fisheries and cultivation fisheries is also different for each province. For instance, in Aceh, food material has the biggest weighing contribution with 30.44% but in cultivation fisheries is 31.91% from household total consumption. It also occurred in cultivation fisheries, where in Riau food material also weighs 28.2% in capture fisheries and 28.82% in cultivation fisheries. An instance from other case is in production cost and capital goods increase; transportation in Riau gives 12.20% contribution on capture fisheries, but only 0.129% in cultivation fisheries. Analysis of National Terms of Trade Components Growth Rate In order for the dynamic of terms of trade to illustrate the actual condition, fisheries terms of trade is distinguished into fisherman terms of trade (NTN) and cultivator terms of trade (NTPi). According to this segregation analysis, NTN index shifts with a higher rate than NTPi in period. NTN shifts from (January 2008) to (December 2012), while NTPi shifts from (January 2008) to (December 2012). Monthly NTN index growth rate coefficient is , while NTPi s is , or monthly index growth rate for NTN increased 3 times of NTPi index growth rate. It can be explained from NTN and NTPi components as illustrated in Figure 6.1. Final Report Page 132

143 150,00 140,00 Dinamika NTN dan NTPi dan Komponennya 2007=100 IT Nelayan 130,00 IT Budidaya 120,00 IB Budidaya IB Nelayan 110,00 NTPi NTN 100,00 90,00 Jan 08 Mar 08 Mei 08 Juli 08 Sep 08 Nov 08 Jan 09 Mar 09 Mei 09 Juli 09 Sep 09 Nov 09 Jan 10 Mar 10 Mei 10 Juli 10 Sep 10 Nov 10 Jan 11 Mar 11 Mei 11 Juli 11 Sep 11 Nov 11 Jan 12 Mar 12 Mei 12 Juli 12 Sep 12 Nov 12 Indeks Harga yang Diterima Nelayan NTN Indeks Harga yang Dibayar Pembudidaya Indeks Harga yang Dibayar Nelayan Indeks Harga yang Diterima Pembudidaya NTPI (Sumber : diolah dari data BPS, 2013) Figure The growth and dynamic of NTN, NTPi, and the components. In components of NTN and NTPi, fisherman received index (IT) shifts with a higher rate than cultivation s IT. Meanwhile, the divider factor (numerator) i.e paid index (IB) for cultivation fisheries is higher than fisherman s IB. Thus, the fisherman IT ratio divided by fisherman IB (as terms of trade index) is higher than the ratio of cultivation IT divided by cultivation IB. It causes NTPi to shifts without ever surpassing 110, even from January to March 2008 it stays below 100. It is important to note that NTN and NTPi values are the comparison of index figures, which in the calculation it is assumed only from received price index and paid price index. Received index is influenced by the produced product, while paid index is influenced by the consumed products both for household consumption and for production cost and capital goods gain. In accordance with estimation method used by the Statistic Agency, with modified Laspeyers Index calculation, which requires a firm assumption. The important assumption is that the production and consumption amount is assumed to be constant, in accordance with with based year condition in 2007 (year of 2007=100). Thus, the received and paid index are only influenced by price change on produced or consumed commodities. In index calculation, both for received index and paid index, price on t-time is always compared to price on t-1 time. It shows the growth of commodities inflation over time. Final Report Page 133

144 However, if index from the based year is used, where there is a positive inflation over time, then the longer the duration from the based year the index will be higher. Factually, it is shown clearly where the dynamic pattern is cyclical, where the index will continue to shift as the function of time and reaches its peak on the longest time (monthly in the same year occurred in December) and annual will be gained on the longest time (December as the longest time from based year). It is because the t month index is shifted from t-1 month price simultaneously. A positive index shows that price on t month is always higher than the price on t-1 month. Thus, it indicates a continuous inflation on product price, as seen in Figure ,00 145,00 140,00 135,00 130,00 125,00 120,00 115,00 110,00 105,00 100,00 Dinamika IT Nelayan (tahun 2007=100) Jan Feb Mar Apr Mei Juni Juli Ags Sep Okt Nov Des IT Nelayan 2008 IT Nelayan 2009 IT Nelayan 2010 IT Nelayan 2011 IT Nelayan 2012 Figure Dynamic of Fisherman Terms of Trade Index Value According to the Figure, fisherman received index in December is always higher than January for every year. The pattern implies on the monthly or annual NTN dynamic pattern, as seen in Figure Final Report Page 134

145 118,00 116,00 114,00 112,00 110,00 108,00 106,00 104,00 102,00 100,00 Jan Feb Mar Apr Mei Juni Juli Ags Sep Okt Nov Des NTN 2008 NTN 2009 NTN 2010 NTN 2011 NTN 2012 Figure Monthly NTN growth dynamic Growth dynamic of terms of trade factors both for fisherman or fish cultivator has different characteristics. Time series analysis with (x) monthly time shows that the growth rate for fishermen terms of trade index (NTN) is higher than growth rate for fish cultivator terms of trade index (NTP). Monthly NTN index rate coefficient (0.2151) is far higher than NTPi index rate coefficient (0.0593). Monthly index rate coefficient for fisherman received price is higher (0.6138) than monthly rate coefficient for fish cultivator (0.5044). Conversely, monthly rate coefficient for fish cultivator paid index (0.4251) is higher than monthly rate coefficient for fisherman paid index (0.3519). It explains the NTN condition that shifts higher than NTPi. The growth dynamic of each NTN and NTPi index is presented in the following Table. Table The Growth Rate of Fisherman and Fish Cultivator Terms of Trade Components, January 2008 December FAKTOR NELAYAN (NTN) PEMBUDIDAYA IKAN (NTPI) PERSAMAAN R 2 PERSAMAAN R 2 1. Indeks Harga yang Y= x Y = x Diterima 2. Indeks Harga yang Y=0.3519x Y = x Dibayar 3. Indeks Konsumsi Rumah Y=0.4903x Y = x Tangga 4. Indeks BPPBM Y = x Y = x Nilai Tukar Y = x Y = x (Sumber : Hasil Analisis, 2013) Final Report Page 135

146 Description : x = time in monthly unit Based year : January 2008 Analysis of National Terms of Trade Component Index Elasticity Analysis can also carried out by observing the change of terms of trade component variables on the terms of trade amount. This concept measures the change of terms of trade caused by the change in its components, which refers to elasticity concept. Elasticity is indicated by received price index (IT) and paid price index (IB). Paid price index is calculated from two main components, namely household consumption index and production cost and capital goods increase (BPPBM) index. Elasticity analysis is based on the assumption that terms of trade is compositely influenced by several factors. The concept used is in compliance with the initial conception that the terms of trade compositely influenced by received price index (IT) factor and consumer paid index (IB). Where IB is also the composite from household consumption and production and capital goods change (BPPBM) index. Elasticity is presented in the following Table. Table Received Index (IT) and Paid Index (IB) Elasticity on Terms of Trade NTN NTPi Komponen Perubahan Elastisitas Perubahan Elastisitas Marginal Marginal Indeks Harga Yang Diterima (IT) Indeks Harga Yang Dibayar (IB) (Sumber : Diolah berdasar data BPS, 2013) According to the Table, received price index (IT) change has a positive influence on terms of trade index both for NTN and NTPi. IT index elasticity on terms of trade is more than one or elastic on NTN and closer to one or single elastic on NTPi. It means that the proportion (percentage) of NTN index change caused by the proportion (percentage) of IT change is slightly higher than the IT index change itself. Meanwhile, proportion (percentage) of IT change will influence the proportion (percentage) of the same change on NTPi. Based on the data, NTN is more responsive of IT change compared to NTPi. Received price index (IT) is the composite index constituted by several components namely the fish types sold by fishermen and fish cultivators. Considering the Final Report Page 136

147 enormous number of fish, this analysis describes dominant and important fish types in national fisheries both in capture and cultivation fisheries. Given the limited data about fish price, the price index analysis is based on price on January 2008 as the based year. According to the data from Statistic Agency (Statistic Agency, 2013), the data is data on producer level (farm gate price) and is the current nominal price on that particular month and year. In capture fisheries, as the components of NTN index, in this analysis tuna, shipjack tuna, mackerel and prawn are simulated. Meanwhile, in cultivation fisheries, as the commodities of NTN index, milkfish, catfish, tilapia, and patin. The elasticity of IT components index on IT-NTN and IT-NTPi is presented in the following Table. Table IT Components Index Elasticity on IT-NTN Index Komponen Perubahan Elastisitas Komponen Perubahan Elastisitas IT-NTN Marginal IT-NTPi Marginal IHCakalang IHBandeng IHKembung IHLele IHTuna IHNila IHUdang IHPatin (Sumber : Diolah berdasar data BPS, 2013) According to the table, based on the simulated commodities price index, all is inelastic though the model as a whole is significant. It is probably due to the aggregation strong influence where there are a lot of commodities Meanwhile, the elasticity for each component of IT index on terms of trade (NTN and NTPi) is presented in the following table. According to the result analysis, all components are inelastic, so the NTN and NTPi are unresponsive to the commodity change. It is similar on IT, probably due to the enormous component/commodity amount. Table IT Components Index Elasticity on NTN and NTPi Komponen Indeks Harga Terima (IT) Langsung Perubahan Marginal Tidak Langsung Total Elastisitas NTN IHCakalang IHKembung IHTuna IHUdang Final Report Page 137

148 NTPi IHBandeng IHLele IHNila IHPatin (Sumber : Diolah berdasar data BPS, 2013) Paid index (IB) negatively influences the terms of trade, in accordance with the assumption and approach model. Similarly with IT case, IB elasticity on terms of trade is one (elastic) on NTN and closer to one (single elasticity) on NTPi. Thus, NTN is more responsive to IB change compared to NTPi. This is in line with a priori theory which states that IT positively influences NTN and NTPi, while IB change negatively influences NTN and NTPi. In paid price, household consumption and capital goods change index elasticity on IB (both for NTN and NTPi) is less than one or inelastic. It means that the proportion of terms of trade index change (NTN and NTPi) which is caused by household consumption and capital goods change index change is lower than the change of household consumption and capital goods change index itself. The signs or influences of household consumption and production cost-capital goods gain are positive on IB, complies with the assumption and approach. According to the equation model, household consumption index and capital goods change index are the composite from several components index. Thus, if household consumption index and capital goods change index are elaborated to be its component index, it can be organized into multiple indices. Thus, the influence of each index on NTN and NTPi as a whole can be shown. The elasticity of IB component index on NTN and NTPi is presented in the following Table. Table Elasticity of IB Component Index on Terms of Trade Indeks Komponen Langsung Konsumsi Rumah Tangga NTN NTPi Perubahan Marginal Elastisitas Perubahan Marginal Elastisitas Tidak Langsung Total Langsung Tidak Langsung Bahanmakan Makanan jadi Rumah Sandang Sehat Pnddkn Total Final Report Page 138

149 Trans & komnks Biaya Produksi dan Perubahan Barang Modal Benih Obat-obatan, Pupuk, dan Pakan Ikan Sewa Transportasi Modal Upah (Sumber : diolah dari data BPS, 2013) According to the table, the analysis result is in line with the proposed model that IB has a negative influence on NTN and NTPi. Both in NTN and NTPi, three components with the greatest elasticity are processed food, food material and residential. The 100% change (increase) on residence price index, food material and processed food index will cause change (decline) on NTN by 69.4%, 53.2%, and 36.4%, respectively; and will cause change (decline) on NTPi by 97.7%, 65.8% and 31.6%. Several IB components index have influences that are not as predicted in model and a priori theory, thus excluded from the analysis. Analysis of Inter-regional Terms of Trade Dynamic In fact, the dynamics of NTN and NTPi are also varied between regions or provinces. As a whole, 20.59% from 33 provinces experiences negative NTN increase rate and 70.59% experiences negative NTPi increase rate. NTN growth rates in January 2008-December 2012, three provinces with the highest rate (according to rank) are South Sumatera, Jambi and Yoyakarta. Meanwhile, for the same period, provinces with the highest NTPi growth rates are Riau, North Maluku, and Central Java. The development of NTN and NTPi growth rates for each province is presented in the following Table. Table Fisherman and Fisheries Terms of Trade Index Growth rate, January 2008 December No. Propinsi Persamaan Laju Nilai Tukar Nelayan (NTN) Persamaan Laju Nilai Tukar Perikanan Budidaya (NTPi) Sumatera 1 Aceh y = x y = x Sumatera Utara y = x y = x Sumatera Barat y = x y = x Riau y = x y = x Jambi y = x y = x Final Report Page 139

150 6 Sumatera Selatan y = 0.929x y = x Bengkulu y = x y = x Lampung y = x y = x Kepulauan Bangka Belitung y = x y = x Kepulauan Riau y = x y = x Jawa 11 DKI Jakarta y = x y = x Jawa Barat y = x y = x Jawa Tengah y = x y = x DI Yogyakarta y = x y = x Jawa Timur y = x y = x Banten y = x y = x Bali-Nusa Tenggara 17 Bali y = x y = x Nusa Tenggara Barat y = x y = x Nusa Tenggara Timur y = x y = x Kalimantan 20 Kalimantan Barat y = x y = x Kalimantan Tengah y = x y = x Kalimantan Selatan y = x y = x Kalimantan Timur y = x y = x Sulawesi 24 Sulawesi Utara y = x y = x Sulawesi Tengah y = x y = x Sulawesi Selatan y = x y = x Sulawesi Tenggara y = x y = x Gorontalo y = 0.109x y = x Sulawesi Barat y = x y = x Maluku-Papua 30 Maluku y = x y = x Maluku Utara y = x y = x Papua y = x y = x Papua Barat y = x y = x (Sumber : diolah dari data BPS, 2013) Description : Y = monthly time Based Year: January According to the table on NTN in Sumatera, the highest increase rate is found in South Sumatera and the lowest is found in Riau. Meanwhile in Java, the lowest rate is found in Jakarta and Yogyakarta. According to the site visit, fishermen in Yogyakarta are Final Report Page 140

151 operating in Java South Coast water areas. Their fishing products consist of pelagic and demersal fishes. Pelagic products consist of fishes with high economic values such as big pelagic (tuna, shipjack tuna), while demersal products consist of lobster and coral reef fish. Compared to other regions, the commodities are far higher in price. The price tends to be stable or increase. Meanwhile, the price of local necessities (especially consumption foods price) is relatively constant. Thus, the production price increases higher than consumption goods price. In Bali and Nusa Tenggara, the lowest NTN rate is found in East Nusa Tenggara and the highest is found in West Nusa Tenggara. In East Nusa Tenggara, commodities with dominant influence on the weight diagram structure in 2011 are mackerel (10.70%), sardine (9.41%), grouper (8.62%) and red snapper (7.04%). Meanwhile, the biggest weighing expenses on household consumption are food material (27.14%), processed food (14.24%) and residence (12.51%) (Statistic Agency, 2011). In general, price level and dynamic for consumption goods in East Nusa Tenggara are relatively high. In Kalimantan, the highest rate is found in East Kalimantan and the lowest is in South Kalimantan. In East Kalimantan, marine capture fisheries contribute 71.01% and public waters fisheries contribute 28.98% (Statistic Agency, 2011). In capture fisheries, the biggest weighing is prawn (17.85%) and in public waters fisheries the biggest weighing is snakehead (9.37%). However, living expense in East Kalimantan is generally high and the price dynamic is also high. In Sulawesi, the lowest is found in Central Sulawesi and the highest is found in Southeastern Sulawesi. According to 2011 survey, capture fisheries in Central Sulawesi dominates 99.89% from the total commodity value. The dominant commodities are pelagic fishes such as trevally (14.20%), mackerel scad (16.66%) and shipjack tuna (10.98%); and demersal fish such as red snapper (11.14%) from the total of fish product value. For consumption, household consumption reaches 65.23% compared to consumption for capital goods change (34.76%). Food material and processed food contribute 31.10% and 10.51%, respectively. In the same year in Southeastern Sulawesi, the main commodities are shipjack tuna (17.77%), tuna (9.73%) and mackerel (8.89%) (Statistic Agency, 2011). While for consumption commodities, household consumption contributes higher (72.14%) than consumption for capital goods change (27.85%). Similar with Central Sulawesi, two components with the highest contribution are food material (36.22%) and processed food (11.83%). In Maluku and Papua, the lowest NTN rate is found in Papua and the highest in Maluku. In 2011 survey, the dominant commodities in Maluku are shipjack tuna (11.93%) Final Report Page 141

152 and red snapper (12.69%). While based on the expense index of commodities group, household consumption commodities contribute 62.31% and capital goods change commodities contribute 37.68% (Statistic Agency, 2011). Similarly with other regions, food material and processed foods contribute 12.92% and 12.37%. Capital goods change commodities, i.e land rent and other expenses contribute 12.81% and transportation contributes 11.39%. In Papua, received index of 97.79% is gained from marine fishing. Other important commodities are snapper (14.79%) and crab (10.00%). For paid index, household consumption reaches 65.09%, and capital goods change commodities is 34.90%. In household consumption group, the main expense is for food material, processed food, and apparel which contribute 26.4%, 13.71% and 12.60%, respectively. The growth dynamic of NTPi rate in Sumatera is the lowest in Aceh and the highest in Riau. According to 2011 survey, brackishwater cultivation contributes 66.48% and freshwater cultivation contributes 33.52%. In brackishwater cultivation, prawn and milkfish contribute 46.08% and 16.05% each. While for paid index, 65.24% and 34.75% each contributed by household consumption and capital goods change. Important components of household consumption are food material and processed food with 31.91% and 13.23%, respectively. Meanwhile, the biggest contribution of capital goods change is 12.53%. In the same year, in Riau, marine cultivation contributes 98.35% from cultivation received index; with grouper contribution of 97.42%. For paid index, household consumption contributes 66.93% on the weight diagram compared to capital goods change with 32.73%. Important household consumption commodities are food material, processed food and residence with 23.29%, 12.39%, and 11.85% on the weight diagram. In capital goods change group, capital goods give 21.05% contribution. In Java, the lowest NTPi rate is in Jakarta and the highest is in Central Java. In Jakarta, in 2011, grouper and seaweed contributions are 50.15% and 49.84% on fisheries cultivation commodities weight diagram. While in paid index, consumption and capital goods contribute 58.81% and 41.18% on the weight diagram. On consumption, food material and processed food commodities weigh 25.27% and 10.83% on the weight diagram. While on capital goods change, seed and fertilizer, medicine and fish food weigh 21.79% and 10.72% on the weight diagram. In Bali and Nusa Tenggara, all commodities have negative increase rate, but the lowest occurred in Bali and the highest in West Nusa Tenggara. In Kalimantan, the lowest rate of NTPi occurred in East Kalimantan and the highest occurred in Central Kalimantan. In East Kalimantan, in 2011, marine cultivation, brackiswahter and freshwater cultivation weigh 4.77%, 82.75% and 12.47% on the cultivation commodity weight diagram. Prawn Final Report Page 142

153 and milkfish contribute 70.96% and 11.79%, respectively, on cultivation commodities (Statistic Agency, 2011). On household consumption and capital goods change, household consumption and capital goods change weigh 63.98% and 36.01%. On consumption commodities group, food material, processed food and residence weigh 28.27%, 10.69% and 10.15%. The phenomenon of NTPi rate decline is also occurred in Sulawesi, where in all regions there are negative rate. The highest decline rate (lowest increase rate) is found in North Sulawesi and the lowest decline rate (highest increase rate) is found in Southeastern Sulawesi. In North Sulawesi, marine, brackishwater and freshwater cultivations weigh 2.24%, 28.5% and 94.89%. Tilapia and goldfish are the important commodities which contribute 57.04% and 37.85% on the weight diagram. While for paid index, household consumption and capital goods change weigh 67.59% and 32.43% on the weight diagram. Food material, processed food and residence weight 30.61%, 10.39% and 13.07%, respectively. In Southeastern Sulawesi, marine and brackishwater cultivation weigh 35.28% and 64.71%. Seaweed weighs 26.99%, while milkfish and prawn weigh 42.60% and 22.10% on the cultivation fisheries product commodities weight diagram. From paid index components viewpoint, household consumption and capital goods weigh 72.14% and 27.85%. Food material and processed foods weigh 36.22% and 11.88% on the weight diagram. Meanwhile, in Maluku-Papua, the lowest NTPi rate occurred in Maluku and the highest in North Maluku. In Maluku, based on 2011 survey, marina and freshwater cultivations weigh 91.40% and 8.59% on fisheries commodities weight diagram. Grouper, seaweed and sea cucumber weigh 49.10%, 30.52% and 11.78% from the total of cultivation fisheries commodities (Statistic Agency, 2011). From paid index viewpoint, consumption and capital goods change group weigh 64.73% and 35.25%. Food material and processed food weigh 30.0% and 13.52% from commodity value on the paid index. For capital goods change, capital foods have the greatest weigh with 14.96%.. For cultivation fisheries commodities behavior in North Maluku, marine cultivation, brackishwater cultivation and freshwater cultivation weigh 77.30%, 1.55% and 21.14%, respectively. Seaweed and grouper weigh 51.38% and 16.91%, while tilapia weigh 13.05% on cultivation fisheries production weight diagram. From paid index viewpoint, household consumption and capital goods change weigh 68.49% and 31.50% from the total. Similarly with other regions, food material and processed foods have the greatest weigh with 34.23% and 12.60%, while capital goods (in capital goods change category) weigh 14.84% from the total of paid index weighing (Statistic Agency, 2011). Final Report Page 143

154 Based on the elaboration, it is indicated that while the paid index is varied according to the region (province) but in general household consumptions has a greater weigh compared to capital goods change expenses. The frequently found pattern in provinces with highest or lowest index rate is that food material and processed food have greater weighs than other commodities. This finding should be considerate in formulating and prioritizing policies to improve welfare, especially based on the price index dynamic and contribution of each commodity on paid and received index components Household Consumption Index National household consumption index is a composite index of provincial index. National composite index is compiled by combining (with particular weighing) provincial household consumption index figures. Household consumption index is index compiled from all kinds of commodities which is consumed by cultivation and fisherman household. The number of commodities is varied for every province in Indonesia. For instance, in Jakarta, the number of weighing commodities for household consumption is 302 commodities, in East Nusa Tenggara is 172 commodities, in Southeastern Sulawesi is 187 commodities and in Papua is 169 commodities (Statistic Agency, 2013). The commodities then categorized into food material, processed food, residence, apparel, health, education-recreation-sport, and transportation-communication. Thus, the household consumption index is established from food material, processed food, residence, apparel, health, education-recreation-sport and transportation-communication components indices. In the period of January 2008 December May 2013, the most prominent growth rates of fisheries household consumption index are food material and residence rates. The two components have higher index figures than household consumption index and other components indices. Analysis of Component Index Rate In the period of May to November 2008, transportation and communication index increased drastically and then declined. The increase is predicted to be caused by the increase of fuel price. However, the established price level is not able to go back to the initial price, because transportation cost does not follow the market mechanism, because it is determined by the government policy. Final Report Page 144

155 Jan-08 Mar-08 Mei-08 Jul-08 Sep-08 Nop-08 Jan-09 Mar-09 Mei-09 Jul-09 Sep-09 Nop-09 Jan-10 Mar-10 Mei-10 Jul-10 Sep-10 Nop-10 Jan-11 Mar-11 Mei-11 Jul-11 Sep-11 Nop-11 Jan-12 Mar-12 Mei-12 Jul-12 Sep-12 Nop-12 Jan-13 Mar-13 Mei-13 Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN ,00 150,00 Indeks Konsumsi Rumah Tangga Perikanan 140,00 130,00 120,00 110,00 100,00 Konsumsi Rumah Tangga Bahan Makanan Makanan Jadi Perumahan Sandang Kesehatan Pendidikan, Rekreasi & Olah raga Transportasi dan Komunikasi Figure Fisheries Household Consumption Index Therefore, even if fuel price declined, transportation and communication index is on a new balance which is higher than the previous index (Figure 6.2.2). The figure is the condition when fisheries household consumption index value as the composite of fisherman household and fish cultivator household. If fisherman and fish cultivator households are separated, there is a slight difference in household consumption index behavior Indeks Harga BBM (2007=100) Transportasi dan Komunikasi Konsumsi Rumah Tangga Figure The dynamic of Fuel Price Index, Household Consumption Index and Transportation and Communication Index from Fisheries Terms of Trade. Final Report Page 145

156 In general, household consumption index growth rate is higher than capital goods change index growth rate, both for fisherman and fish cultivator. It can be interpreted that household consumption will has a greater influence on paid index than consumption for operational and capital gain. Non-productive consumption growth rate is higher than consumption rate for productive goods. However, fish cultivator household consumption index rate (coefficient of ) is higher than fisherman s (coefficient of ). It means that the increase of fish cultivator household consumption index is higher than of fisherman household in the same period of time. Table Index Growth Rate for Household Consumption and Its Components FAKTOR NELAYAN PEMBUDIDAYA IKAN PERSAMAAN R2 PERSAMAAN R2 Indeks Konsumsi Rumah Y=0.4903X y = x Tangga Bahan Makanan Y=0.6002X y = 0.603x Makanan Jadi Y=0.5684X y = x Perumahan Y=0.3824X y = x Sandang Y=0.4768X y = x Kesehatan Y=0.3538X y = x Pendidikan, Rekreasi, dan Y=0.2588X y = x Olahraga Tranportasi dan Komunikasi Y=0.1318X y = x Keterangan : X = waktu dalam bulanan Tahun dasar : Januari 2008 In fisherman household consumption, food component which includes food material and processed food has a higher index than household consumption index and other components indices. Growth rate coefficient for each component is higher than other components. On the third position is apparel consumption price index rate. While the behavior pattern of transportation and communication index rate is equal with fisheries household consumption index (composite index) but the magnitude is not as high as fisheries index condition. As a whole, transportation and communication component has an index with the lowest growth rate, as seen in the following Figure. Final Report Page 146

157 Jan 08 Mar 08 Mei 08 Juli 08 Sep 08 Nov 08 Jan 09 Mar 09 Mei 09 Juli 09 Sep 09 Nov 09 Jan 10 Mar 10 Mei 10 Juli 10 Sep 10 Nov 10 Jan 11 Mar 11 Mei 11 Juli 11 Sep 11 Nov 11 Jan 12 Mar 12 Mei 12 Juli 12 Sep 12 Nov 12 Jan 08 Mar 08 Mei 08 Juli 08 Sep 08 Nov 08 Jan 09 Mar 09 Mei 09 Juli 09 Sep 09 Nov 09 Jan 10 Mar 10 Mei 10 Juli 10 Sep 10 Nov 10 Jan 11 Mar 11 Mei 11 Juli 11 Sep 11 Nov 11 Jan 12 Mar 12 Mei 12 Juli 12 Sep 12 Nov 12 Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN ,00 140,00 135,00 130,00 125,00 120,00 115,00 110,00 105,00 100,00 Dinamika Indeks Konsumsi Rumah Tangga Nelayan Indeks Konsumsi Rumah Tangga Nelayan Makanan Jadi Sandang Pendidikan, Rekreasi, dan Olahraga Bahan Makanan Perumahan Kesehatan Tranportasi dan Komunikasi Figure Index Dynamic for Fisherman Household Consumption and Its Components. Similar with fisherman household, analysis on fish cultivator household also shows that the important components of household consumption are foods which include food material and processed food. Apparel index component is on the third position, while the lowest growth rate is on transportation and communication component. Dynamic pattern of transportation and communication is similar with the case on fisherman household, as seen in the following Figure. 145,00 140,00 Dinamika Indeks Konsumsi Rumah Tangga Pembudidaya Ikan 135,00 130,00 125,00 120,00 115,00 110,00 105,00 100,00 Indeks Konsumsi Rumah Tangga Pembudidaya Makanan Jadi Sandang Pendidikan, Rekreasi, dan Olahraga Bahan Makanan Perumahan Kesehatan Tranportasi dan Komunikasi Figure Index Dynamic for Fish Cultivator Household Consumption and Its Components. Final Report Page 147

158 Analysis of Component Index Elasticity The analysis can also be developed based on the behavior of relationship between household consumption index change and its components indices. This concept is the elasticity concept, namely the elasticity of component index elasticity on the household consumption index. It means that it measures the proportion of household consumption index change which is caused by the proportion change of its components indices. According to the analysis, all elasticity values are positive, which means that influence of component index change will be in line with household consumption index change. It complies with the assumption and analysis in the NTN and NTPi index components. The complete variability can be seen in the following Table. Table Household Consumption Component Index Elasticity on Household Consumption Index Indeks KRT-NTN Indeks KRT-NTPi Komponen KRT Perubahan Elastisitas Perubahan Elastisitas Marginal Marginal Bahanmakanan Makanan jadi Rumah Sandang Sehat Pendidikan Transportasi dan komunikasi (Sumber : Hasil analisis data BPS, 2013) According to the elasticity analysis, we can derive some conclusions. First, the clear pattern is that the entire component index has elasticity < 1 (inelastic) on household consumption index. It means that household consumption index change which is influenced by its component index change is lower than the component index change. The second pattern is that the household consumption component index on NTPi is more inelastic than household consumption component index on NTN. In general, household consumption index for NTN is more responsive on the component index change compared to NTPi household consumption index. Final Report Page 148

159 Boks 1. Household Consumption Index Household consumption index is an index compiled from several component indices namely food material, processed food, apparel, residence, education-recreation-sport, health, and transportationcommunication. Based on the analysis of NTN and NTPi data from January 2008 to December 2012, the following conclusions are derived. 1. Household consumption index monthly rate coefficient is higher than production cost-capital goods gain monthly rate coefficient 2. NTPi household consumption index monthly rate coefficient is higher than NTN household consumption index. 3. Three components of household consumption index with the greatest monthly rate coefficient are food material, processed food and apparel. 4. Household consumption index elasticity is negatively inelastic on NTN and NTPi, in accordance with the assumption and calculation approach. 5. Household consumption component index elasticity is positively inelastic on household consumption index, both for NTN and NTPi, in accordance with the assumption and calculation approach. 6. NTPi household consumption component index elasticity is more inelastic than NTN-household consumption component index. 7. Three component indices with the greatest elasticity value on household consumption are food material, processed food and residence. According to the table above, three component indices with the greatest elasticity on household consumption index both for NTN and NTPi are food material, processed food and residence. The mentioned indices elasticity on NTN household consumption are 0.448, 0.184, and It means that 100% change on each index is predicted to cause change on NTN household consumption index by 44.8%, 18.43%, and 16.3%. Meanwhile, for NTPi, indices elasticity on NTPi are 0.425, 0.157, and It means that 100% change on each index is predicted to cause change on NTPi household consumption index by 42.5%, 15.7% and 17.0%. This component analysis is in line with the analysis result on monthly index rate coefficient for the mentioned household consumption index components. Final Report Page 149

160 Jan-08 Mar-08 Mei-08 Jul-08 Sep-08 Nop-08 Jan-09 Mar-09 Mei-09 Jul-09 Sep-09 Nop-09 Jan-10 Mar-10 Mei-10 Jul-10 Sep-10 Nop-10 Jan-11 Mar-11 Mei-11 Jul-11 Sep-11 Nop-11 Jan-12 Mar-12 Mei-12 Jul-12 Sep-12 Nop-12 Jan-13 Mar-13 Mei-13 Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN Production Cost and Capital Goods Gain (BPPBM) Index Production cost and capital goods gain (BPPBM) is an index which illustrates fisheries household expense for production activities both for capture fisheries and cultivation fisheries. The composite of fisheries BPPBM index includes (1) seed, (2) fertilizer, food and medicine, (3) transportation, (4) land rent, tax, etc, (5) capital goods gain, and (6) farmer salary. Analysis of Component Index Rate In the period of January 2008-May 2013, land rent, tax and others are the components of BPPBM with the highest index rates. Meanwhile, medicine, fertilizer and food are initially have low index but then significantly increased in a consistent manner until May An interesting phenomenon is that in June-December 2008, where the transportation index increased drastically, and then declined but still higher than the period before June This transportation index increase pattern is followed by BPPBM index pattern but with a smaller magnitude in the same period. The dynamic BPPBM growth index is presented in the following figure. 130,00 125,00 Indeks BPPBM Perikanan 120,00 115,00 110,00 105,00 100,00 95,00 BPPBM Obat-obatan & Pupuk Sewa Lahan, Pajak & Lainnya Upah Buruh Tani Bibit Transportasi Penambahan Barang Modal Figure Index dynamic for Fisheries BPPBM and Its Components The illustration above is the fisheries illustration as a whole as the combination between capture fisheries and cultivation fisheries. In fact, BPPBM for fishing activities will be different between capture fisheries and cultivation fisheries. BPPBM components on capture fisheries is fewer, which only consists of rent cost and other expenses, Final Report Page 150

161 transportation, capital goods and work force salary. Seed and fertilizer, medicine and fish food components are not categorized as BPPBM components in capture fisheries. Thus, the cost component for cultivation fisheries is greater. Table BPPBM and Its Component Index Growth Rate FAKTOR NELAYAN PEMBUDIDAYA IKAN PERSAMAAN R2 PERSAMAAN R2 Indeks BPPBM y = x y = x Benih - - y = x Obat-obatan, Pupuk, - - y = x dan Pakan Ikan Biaya Sewa dan y = x y = x Pengeluaran Lain Transportasi y = x y = x Barang Modal y = x y = x Upah Buruh y = x y = x Keterangan : X = waktu dalam bulanan Tahun dasar : Januari 2008 Fish cultivator BPPBM index growth rate coefficient (0.2812) is higher than fisherman BPPBM index growth rate coefficient (0.1605) on time (monthly). It means that cultivation fisheries BPPBM increases higher (almost two folds) compared to capture fisheries BPPBM in the same particular time. Capture fisheries (fisherman) BPPBM components with the highest rate is rent cost and other expenses and capital goods with coefficients of and Meanwhile, transportation has the lowest rate coefficient (0.080), a little below workforce salary (0.0925). However, from the magnitude viewpoint, transportation is still higher than workforce salary. Rent cost and other expenses consistently show a high magnitude and rate compared to other components from January 2008 December Meanwhile, capital goods index rate is higher than BPPBM index since January 2009, even though the magnitude and growth rate of capital goods index is lower than rent cost and other expenses. The dynamic of transportation index increased significantly since June to December 2008, then stabilized but with a higher index magnitude than before June Final Report Page 151

162 Jan 08 Mar 08 Mei 08 Juli 08 Sep 08 Nov 08 Jan 09 Mar 09 Mei 09 Juli 09 Sep 09 Nov 09 Jan 10 Mar 10 Mei 10 Juli 10 Sep 10 Nov 10 Jan 11 Mar 11 Mei 11 Juli 11 Sep 11 Nov 11 Jan 12 Mar 12 Mei 12 Juli 12 Sep 12 Nov 12 Jan 08 Mar 08 Mei 08 Juli 08 Sep 08 Nov 08 Jan 09 Mar 09 Mei 09 Juli 09 Sep 09 Nov 09 Jan 10 Mar 10 Mei 10 Juli 10 Sep 10 Nov 10 Jan 11 Mar 11 Mei 11 Juli 11 Sep 11 Nov 11 Jan 12 Mar 12 Mei 12 Juli 12 Sep 12 Nov 12 Fisherman Terms of Trade Achievement - Background Study of Marine and Fisheries RPJMN ,00 Dinamika Indeks BPPBM Perikanan Tangkap 115,00 110,00 105,00 100,00 Indeks BPPBM Nelayan Transportasi Upah Buruh Biaya Sewa dan Pengeluaran Lain Barang Modal Figure Dynamic of Fisherman BPPBM and Its Components For fish cultivator BPPBM, the highest component is medicine, fertilizer and fish food component. Meanwhile, seed is significantly increased after January Component with the lowest index magnitude is rent cost and other expenses, as seen in the following Figure. 125,00 120,00 Dinamika Indeks BPPBM Perikanan Budidaya 115,00 110,00 105,00 100,00 Indeks BPPBM Pembudidaya Obat-obatan, Pupuk, dan Pakan Ikan Transportasi Upah Buruh Benih Biaya Sewa dan Pengeluaran Lain Barang Modal Figure Dynamic of Fish Cultivator BPPBM and Its Components For fishing transportation, the dynamic pattern is similar with capture fisheries BPPBM. In the period of June-December 2008, the pattern observed is similar as fisherman BPPBM. Final Report Page 152

163 The difference on BPPBM components which become parts of paid index caused the cultivation paid index to be higher than fisherman paid index. Two BPPBM components are: seed; fertilizer, medicine and fish food, have significant contributions. Though it s varied between provinces, based on the weight diagram, fertilizer, medicine and fish food, and seed have considerably high weigh composition. In the production cost structure, seed cost ranges between 5 to 12% from total cost. Meanwhile, food is far higher in the range of 40-80% from total cost. Higher proportion of fish food cost on the total cost is found in cultivation fisheries with high non-economic commodity such as catfish. Analysis of Component Index Elasticity In addition to coefficient rate analysis, the analysis is also expanded with elasticity concept. In this concept, component index elasticity on BPPBM index is estimated, both for NTN and NTPi. The analysis result shows that the entire component index elasticity have positive coefficient, which is in line with the assumption and analysis method developed, as seen in the following Table. Table Component Index Elasticity on BPPBM Index Indeks Komponen BPPBM Indeks BPPBM-NTN Perubahan Elastisitas Marginal Indeks BPPBM-NTPi Perubahan Elastisitas Marginal Benih Obat-obatan, Pupuk, dan Pakan Ikan Sewa Transportasi Modal Upah (Sumber : Hasil analisis data BPS, 2013) Based on the table, the following patterns are derived. First, even though the entire component index elasticity is positive, but it s inelastic (< 1). As a whole, BPPBM-NTPi component index elasticity is more inelastic than BPPBM-NTN component index elasticity. This is in line with index rate coefficient analysis. Referring to the table above, three component indices with the highest elasticity value on BPPBM-NTN index are transportation, rent cost and capital, each with 0.325, 0.300, and It means, if there is a 100% change proportion on each index it will Final Report Page 153

164 cause BPPBM-NTN index change proportion of 32.5%, 30.0% and 26.0%, respectively. Meanwhile, for BPPBM-NTPi index, three component indices with the highest elasticity value are medicine, fertilizer and fish food; seed; and rent cost and other expenses with values of 0.325, and 0.190, respectively. Thus, if there is a 100% change on the component index, it is expected to cause BPPBM-NTPi index change of 32.5%, 32.2% and 19.0%, respectively. This is also in line with the previous analysis on BPPBM component index monthly rate Refinement on Fisherman Welfare Measurement The welfare concept including fisherman welfare is a complex concept, and consists of various variables with different dimensions. Some parts of the dimensions are tangible and empirical, but the rest are intangible and non-empirical concepts which would be different between individuals. For the importance of developmental policies, welfare measurement can only be applied on measureable dimensions, namely on tangible and empirical dimensions. Boarini, Johanson and d Ercole (2011) categorized welfare measurement indicators into monetary indicators and non-monetary indicators. Monetary indicator consists of indicators that can directly and indirectly measured. Meanwhile, nonmonetary indicator couldn t be valued in monetary form such as social condition, environmental quality, happiness and life satisfaction. For the importance of developmental policies, welfare measurement can only be applied on measureable and empirical approach, which is based on monetary indicator. Based on monetary indicator (economic), welfare measurement can be conducted with macro aggregate approach and micro aggregate approach on individual level. In macro aggregate approach, there is a social welfare measurement which measures economic efficiency by analyzing economy inefficiency by calculating deadweight loss. Meanwhile, economic welfare measurement on micro-individual level is done with per capita measurement approach such as income per capita or gross national revenue per capita (GNP per capita), or expense per capita. The per capita measurement is then used to produce calculation per household by totaling individual income or expense in one family average, and is an effort to measure community welfare in an economic manner from revenue viewpoint. Welfare measurement with partial approach, both for income or expense, is frequently used due to the relative convenience. However, interpretation and representation of measurement is still considered less comprehensive due to the lack of comparison. A particular income per capita (x rupiah) cannot illustrates the actual welfare Final Report Page 154

165 due to the lack of comparison of expense that is borne by the individual. It is also the case with single household expense measurement; it cannot illustrate the plenary welfare because it cannot illustrate whether the expense can be fulfilled by individual s income. Therefore, Boarini, Johanson and d Ercole (2011) proposed that measurement with any monetary indicator selected as a single measurement is unable to provide an exact measurement. A comprehensive economic welfare measurement based on monetary indicator can be achieved by simultaneously measuring the income indicators and expense indicators per capita or in household units. If these indicators are gained, the ratio which indicates income adequacy to fulfill needs can be derived. Conceptually, fisherman terms of trade (NTN) and fish cultivator terms of trade (NTPi) measurement seeks to answer this measurement concept. However, there are several things which make NTN and NTPi less appropriate to illustrate the actual condition of fishermen and fish cultivators welfare, both in concept and interpretation. 1. Assumption of constant production which is not in accordance with the empirical condition Terms of trade index calculation formula seeks to accommodate this concept by incorporating received price index (IT) and paid price index (IB) which are two approaches on income and expense. However, because the formula is based on price index approach (modification of Laspeyers index), the index dynamic is only influenced by price dynamic. It is because the calculation formula is based on the assumption that production dynamic (volume) is considered constant. This assumption is predicted to be impossible and irrelevant to fisheries (cultivation and capture) production dynamic, where the production system (technology) is unable to control exogenous factors such as environmental and seasonal factors. Consequently, production is highly influenced by nature (environment and season) and is not constant in nature, as een in the previous chart. As terms of trade concepts, fisherman terms of trade (NTN) and fish cultivator terms of trade (NTPi) is now illustrating the value of commodities terms of trade which illustrates the substitution magnitude (price) of that a particular goods with other goods, such as household consumption or production goods. This concept is a subsistent or barter terms of trade. It means that, according to the price, how many products can be exchanged with fisheries product commodities. Even though this is not in line with the concept of competitive price, it shows the power of fisheries commodities exchange value with other goods or services. Final Report Page 155

166 2. The existence of carrying capacity obstacle Production and price dynamics found in fisheries commodities (with most of the production patterns influenced by exogenous factors), don t always follow production utility function, where supply will increase due to the increase of product price. In fact, on the condition where the postulate is relevant, the dynamic of resource in the form of carrying capacity emerges as an obstacle. It caused a backward bending supply curve proposed by Copes (1970), where to the point after the carrying capacity, production will decline even without any price increase (Purnomo and Taryono, 2005). It means that production is not always in line with price change incentive. Thus, on the condition after the surpassing of carrying capacity, production (especially captured products) will declines along with the price increase. It indicates that production is not merely influenced by the price factor. Therefore, price index measurement which assumes that price is continuously increase doesn t reflect the supply/production condition. 3. Price change on fisheries commodities is a supply driven phenomenon In empirical viewpoint, economic law is realized in the form of market balance (with constant capacity and symmetric market information assumption). Namely, the production price increases along with price decline. Conversely, on condition where the production declines there will be price increase. It is important to note that the price dynamic is a supply driven phenomenon. It means that price change is highly influenced by supply change, considering that fisheries commodities are inelastic on income. It is seldom to be found that price dynamic is significantly influenced by demand (capacity) change. Even for global commodities such as prawn and tuna, price dynamic is also heavily influenced by production factor. As seen in the current condition, increase on cultivated prawn price is caused by production decline factor on the main producer countries due to early mortality syndrome (EMS) which caused global production to decline, not because of the increase of demand. It caused production factor and its dynamic to be highly significant in forming price. It means that embedded price dynamic is strongly influenced by supply, not the other way around. It strongly indicates that a high price is found on declined supply or production condition. In capture fisheries, this phenomenon is prominent, where the highest price is found when fishermen are unable to sail, and doesn t show the Final Report Page 156

167 highest economic welfare. In fact, economic welfare is on the lowest point, because fishermen cannot produce any products. Based on the concept and empirical phenomenon, and supported by relation between production chart and production value chart, terms of trade measurement is deemed inappropriate to measure welfare. However, it is robust for commodities terms of trade measurement. 4. The complexity of interpretation, price index control and ideal value determination. Based on the field observation, there are a lot of wrong interpretations on the concept of NTN and NTPi which are calculated and become indicators of welfare measurement. In calculation formula, there are two main components namely received price index (IT) and paid price index (IB). A lot of respondents interpret IT as received index and IB as payment index. Thus, if they were given an illustration of 120% NTN, there is an assumption that the received index is 20% higher than payment/expense. It can be misguiding due to the assumption that higher NTN and NTPi are better. Index is something that continuously shifts, where the value of good and bad is a relative appraisal according to the based year. Therefore, the measurement would be highly vulnerable, because it depends on the based year as the measurement base. If the based year changed, NTN and NTPi values will also change. In fact, control on price index which constitutes NTN and NTPi is also highly difficult to do. Considering that commodity price is the result of market mechanism, and government has a very limited capacity to control it. In addition, received price index (IT) and paid price index (IB) constituent commodities are also highly varied. According to the calculation method, the index is calculated over time. Price index on t month will influence the price index on t+1 month. Therefore, ratio of IT and IB is index ratio, which is complicated to control. In this stage, policies to determined the magnitude of index ratio with a particular value will be hard to accomplished, considering that ratio elements in NTN and NTPi are almost impossible to be controlled by the government. In order to gain an illustration of welfare level on individual level and a better interpretation of NTN and NTPi measurement results, the following refinements are needed. 1. Dissemination of NTN and NTPi s component concepts. Final Report Page 157

168 The majority of mistakes in NTN and NTPi interpretation is misinterpretation of Received Price index (IT) and Paid Price index (IB). It can be in the form of index figure misinterpretation and IT and IB concepts misinterpretations as received and payment. In order to give the actual illustration, Received Price index (IT) and Paid Price index (IB) are proposed to be abbreviated as IHT for received price index (Index Harga Terima) and IHB for paid price index (Index Harga Bayar). The emphasize on the word harga (price) is needed to reinforce the meaning that received price index is not received index and paid price index is not payment index. 2. Welfare index measurement with monetary indicators Index measurement which illustrates economic development quality, inequality, and poverty index. Economic development index consists of gross production per capita and human development index (HDI). Inequality index consists of Lorenz curve and Gini concentration ratio. Poverty index consists of absolute and relative income, expense per capita, poverty threshold and poverty head count. 3. Other innovation which can be implemented is income terms of trade measurement. Income terms of trade illustrates the income exchange value derived from expense needs fulfillment. This value is a ratio based on income components as a numerator and expense components as a denominator. Because it is based on income, components of production amount cannot be assumed as constant. Thus, the dynamic resulted is income dynamic. In order to depict the actual condition, absolute value is used rather than index value. The income terms of trade measurement doesn t need to be done monthly, but per semester, so that in one year there are two surveys conducted. Respondents of the survey should be strongly defined, considering that there are fishermen and fish cultivators that don t make fishing activities as their main employments Factors Contributing to Fisherman and Fish Cultivator Households Welfare Price Dynamic Approach According to the previous analysis, NTN and NTPi terms of trade are dominantly viewed from price dynamic over time. On received price index, price dynamic over time is always increases with the positive received index rate coefficient. While it fluctuates over time, it generally shows a positive price increase rate. It shows that there is an increasingly positive fisheries commodities price inflation. The trend is that the year end s price will always increased compared to the initial price. This pattern is also found in NTN, Final Report Page 158

169 because NTN follows fisherman received price index (IT) pattern. If NTN approach as a proxy on welfare, there will be maxi-max condition which when NTN index is high the welfare is better. In accordance with fish price dynamic condition in the previous figure, there is a negative relationship between price and production volume. When production volume increases, there is a price decline. Even though it s varied between regions, from national macro or production center-micro viewpoint, the pattern is always the same. It means that price dynamic cannot be separated from production volume dynamic. Therefore, analysis which is based on price dynamic as an approach to welfare is considered not appropriate. It is because welfare (from economic viewpoint) is calculated based on the comparison between family income and expense. Referring to the chart above, low production volume is frequently found in high price condition. In general, price dynamic as the response to the balance of supply and demand, is still dominantly determined by supply. In fisheries, food products tend to be inelastic due to several factors such as preference, accessibility and other protein source substitution alternatives. Therefore, when the price is high there is a decline on supply due to declined production. It caused th marketed-surplus to be lower. Even in several extreme cases, fisherman could not catch any fish due to the extreme weather condition. Thus, even if price increased drastically, fishermen welfare is in fact lower due to the low volume of marketed surplus. Technically, fishermen s inability to catch any fish on extreme weather conditions is caused by the inadequate technology applied on fishing boats, where 95.5% of Indonesian fishing fleet are less than 5 GT sized boats. Based on terms of trade indicators, terms of trade is influenced by the price dynamic on marketed-surplus commodities and the dynamic of commodities price paid (bought) both for household consumption and production process. According to the existing data, price index rate on consumption commodities is higher than commodities price index rate for production. If the terms of trade formulation is used to measure welfare, then from expense viewpoint, expenses for household consumption are more dominant than expenses for production activities. Thus, the price increase rate for consumption goods (consumption goods inflation) becomes a crucial thing. In order to increase terms of trade as an effort to improve welfare, control on consumption goods inflation needs to be implemented. However, considering that the main components of household consumption are food material, processed food and apparel; the control of inflation will suppress the mentioned goods price. Clearly it will be in contradiction with the effort to improve welfare of the business operators of that particular commodities group. Therefore, the effort to be Final Report Page 159

170 implemented is by reducing costs incurred for production process or giving additional income for fishermen and fish cultivators. The effort is implemented by giving subsidy to suppress production cost or family income subsidy for fishermen and fish cultivators. This already becomes governmental effort, not only the responsibility and function of a particular ministry of institution. It is important to note that even though the commodities price index rate influencing production cost and capital goods gain (BPPBM) is lower, the magnitude on the whole cost can also has a considerable influence. For instance is in the case of fuel where in fishing operation cost structure could reach 60-80%. Thus, even though a low price index rate means a lower price increase from other component, but due to the great proportion on the whole cost, the price increase of one particular component can significantly influence the total cost. It will influences profit gained by fishermen. In the end, even though there is a price increase, it doesn t ensure the increase of family income. Because even though the price increases (which indicates income increase), the cost incurred is also increases. A more crucial thing is in the case of fish cultivation, where seed, food and medicine component is a component with a considerable proportion on the whole cost and has the highest price index increase rate. Thus, this component has double impact on BPPBM index increase, which can significantly influence NTPi index. Based on the price dynamic approach, price on that particular component is expected to be the balance of supply and demand on the market. From producer viewpoint, the price is the balance of optimized production cost. Because in food cost component, there is almost no subsidy received by fish food business operator. For instance, fuel usage is based on the non-subsidy price. Therefore, price reduction could only be implemented by reducing production cost through production efficiency improvement or production input price reduction Income and Expense per Capita Approach Based on the argument mentioned above, fisherman and fish cultivator households welfare cannot only be viewed from price change which is reflected in the price index, but there are more factors which contribute to welfare. According to the definition mentioned in Chapter II, household is considered welfare if it could fulfill all of its needs both material and spiritual. Meanwhile, material and spiritual needs fulfillment is not only influenced by internal factors (factors from inside the family) but also external factors or factors from outside the individual or family. Final Report Page 160

171 From external factors viewpoint, material and spiritual needs can be fulfilled if an individual or household has an adequate income. With an adequate income, family could use it to fulfill the spiritual and material needs of all of the family members. Needs fulfillment is illustrated from household expenses which are clearly used to fulfill the needs of the family members. Therefore, welfare measurement can be approached by the amount of income and expense per capita of a household. Factors that contribute to income and expense per capita, therefore, can also contribute to fisherman welfare. Factors that contribute to welfare according to income and expense per capita in fisherman households are presented in Figure Final Report Page 161

172 Figure Factors contributing to fisherman welfare Final Report Page 162

173 Figure Factors contributing to fish cultivator welfare Final Report Page 163

174 1) Household s income per capita Income per capita is household income divided by the number of family members. Income per capita tends to show a better welfare than household expense. It is because income per capita had already calculated the amount of family members borne by the household. In other words, income per capita illustrates income that can be spent by each members of the family. Therefore, the number of family members will directly influence income per capita. The more number of family members will reduce income per capita. 2) Total family membership Family size or total family membership directly influences income per capita. The number of family members negatively influences income per capita, which means that the more number of family members will reduce income per capita. It is due to the greater number of people to be borne by the family. Even more so if the family composition tends to be dominated by people in the non-productive age (less than 15 years old or more than 65 years old). Due to the direct influence of family size on income per capita, it will negatively influences family welfare in an indirect manner. 3) Household income Household income is basically the total of all income gained by all of the family members which comprise of head of household, wife, and children, as well as other family members live in the same house. Similar with any other household, fisherman and fish cultivator households income is mostly come from head of household s income. If the head of household is a fisherman, the main income is usually comes from fishing business. Meanwhile, in fish cultivator families, the head of household s main income is also comes from fish cultivation business. However, it s not impossible for fishermen and fish cultivators to have additional jobs or side jobs. Side jobs can be in the form of business in the fisheries sector (outside fishing and fish cultivation) such as fish processing or marketing, or business outside of fisheries sector. Fishermen or fish cultivators wives can also help to contribute to household income by working in fisheries sector or non-fisheries sector. Various research result in America indicate that double earner couples tend to be more satisfied than single earner couples. The point is, incomes from families with double Final Report Page 164

175 incomes are higher than families that only depend on one income source, e.g. only from the head of household. Therefore, wife s employment status (employed or unemployed) can also contributes to family income and welfare. 4) Fisheries business (capture and fish cultivator business) income Fisheries business income gives the biggest contribution on household income. For owners and fish cultivators, fisheries business income is the business profit subtracted by reserved fun for business expansion. Meanwhile, business profit is gained from the difference between business revenue and business cost. For labor fishermen, fisheries business income is gained from salary or profit sharing. Most importantly, fisheries business profit is highly depends on: a) Business revenue, which is the multiplication between quantity or production amount and price per production unit (fish price). b) Production cost which consists of fuel cost, supplies, and other costs for fishing business, as well as seed or breed, fish food, medicine, fertilizer, land rent, maintenance, etc. for fish cultivation business. In other words, all factors contributing to business revenue and cost will indirectly influence fisherman and fish cultivator families welfare. 5) Factors contributing to capture fishing and fish cultivation business revenue, among others are: a) Technology. The use of a more sophisticated technology is believed to result in higher production. For instance is in fishing business, the type of boats and fishing gears will highly influence the amount of captured fish. In cultivation business, technology can also influence production amount. b) Natural resource. The availability of fish resource for fishing business is very important. The availability of appropriate lands and waters is an important factor for fish cultivation survival. c) Fish price. Fish price depends on: - Type of fish, there are high economic value fishes such as prawn, tuna, lobster, grouper, and so on. - Fish quality. Good maintenance and post-harvest technique will produce high quality fishes which will have high prices. - Market condition, namely the amount of supply and demand. Final Report Page 165

176 6) Factors contributing to capture fishing and fish cultivation business cost: a) Prices of production cost such as: fuel, supplies, ice, seed and fish breed, fish food, medicine, fertilizer, and so on. b) Licensing and marketing costs c) Production technique. 7) High quality human resource, namely human resources with adequate knowledge and skill on fishing and fish cultivation business. A qualified fisheries operator will operate his/her business effectively and efficiently, thus creating high production. Knowledge and skill needed consist of skill in producing and postharvest handling. High quality human resources are not only applied for fishermen and fish cultivators, but also for wives and other family members. High quality fishermen or fish cultivators wives will be able to manage the available family resource to achieve prosperity. 8) Access to education, health and religious facilities. Welfare is not only the fulfillment of material needs, but also consists of spiritual needs fulfillment. Therefore, the availability of education, health and social, as well as religious infrastructure which are easily accessed by fisherman and fish cultivator families is needed. Final Report Page 166

177 6.6 Issues and Problems Related to Fisherman and Fish Cultivator Welfare Improvement According to FGD result, field observation, and interview with several business operators (fishermen and fish cultivators) as well as stakeholders, there are several problems faced in the effort to improve fishermen and fish cultivators welfare Fisherman The main problems influencing fishermen s income or revenue level in several fisheries production center are as follows: 1) The inadequate supply of fuel and fuel price that is higher than the highest retail price established by the government Fuel is the main production factor of fishing business. However, fuel scarcity, especially diesel, is frequently experienced by fishermen and complicating them to do their business activities, as in the cases of fishermen in PPP Bajomulyo, Pati and PPP Brondong, Lamongan. In addition to fuel scarcity, many fishermen are also pay higher fuel price compared to the highest official retail price. It happens not only because of the scarcity factor but also because of the distance factor due to the location of fishermen center or fish anchor center which is far from the gas station. Even though in several fishing ports or fish anchor centers there are already Diesel Package Dealer for Fisherman which is aimed to provide diesel for fishermen with the same price as the official gas station, but there are still many regions that have yet to be reached by this facility. The scarcity and high diesel price are of course cause burden and even loss to the fishermen. The high diesel price paid by the fishermen will increase production cost, so that it will reduce the income gain 2) Conflicts between fishermen due to the violation of fishing pathways According to FGD result with the fisheries stakeholders from several Central Java coastal areas (Pekalongan, Semarang and Pati), it is revealed that there are still conflicts between fishermen related to fishing pathway violation. Final Report Page 167

178 Boks 2. Expanding Fishing Boats, not A Single Solution Increasing the fishing business scale needs to be accompanied by the change in managerial ability and attitude/mental or culture change. It becomes the key of success for fishermen welfare improvement. Inka Mina boat, is frequently becomes a new problem on fishing regions that already experienced resource decrease. In addition to attitude and culture change, there is a need for a higher operational cost from boats which are previously operated by local fishermen. said the staff of Central Java Marine and Fisheries Department. Inka Mina boat support program is an effort to modernize and restructure national fishing boats fleet, by giving support of bigger boats by the government. Therefore, it is expected that fishermen will have higher income. However, this effort faced failure in several locations, such as Sadeng-Gunung Kidul. From four Inka Mina boats, there is only one still operating. It is due to the difficulty in recruiting crews with appropriate skill and willing to sail longer said a fisherman in PPI Sadeng-Gunung Kidul. In addition to skill and strong mentality, management problem is also a crucial thing. Bigger boats need greater operational cost. Thus, the management could not be done in the same manner as with smaller boats (1-3 crews). Other problem is the size of fleet, which also needs a greater operational cost. However, in several locations in Java North Coast, due to the limited operational cost, the boats are being operated in regions near to the coastal areas. This causes a new conflict, because the fishing areas intersect with areas of smaller boats. This problem is becoming more complicated. Consequently, most of the boats are operated by capital owner not by the fishermen said an FGD participant Semarang. In the FGD, it is revealed that fishermen with cantrang fishing gears frequently come into the Path I (0-4 miles) which is actually prohibited. According to Ministry of Marine and Fisheries Regulation No. PER02/MEN/2011, cantrang fishing gears should operate in Path II and Path III or beyond 4 sea miles. Fishermen with Final Report Page 168

179 cantrang fishing gears which come into the Path I are often destruct other fishing gears operating in Path I, such as gillnet (passive fishing gears). Consequently, it often becomes the trigger for conflicts between gillnet fishermen and cantrang fishermen, which in the end the conflict will influences the income level of that particular fisherman. 3) Fish resources that continuously decrease (the symptom of overfishing) Almost all fishermen visited during field observation (Pekalongan, Pati, Lamongan) stated that fish resource in Java Sea is decreased or there is a symptom of overfishing. One of the cause is due to the weak management effort on capture fisheries sub-sector, which is reflected by the unequal level of fish resource exploitation. In general, capture fisheries fleets in Indonesia are in small scales, including in Java Sea, but due to uncontrolled fleet amount increase, there is an over-exploitation in almost all coastal areas near the dense population areas. Consequently, in over-exploited fishing areas the fishermen tend to be poor due to the decline of productivity or captured products per boat unit. Probably it is time for several regions to implement moratorium acts in order to rationalize the amount of fishing boats and fishing efforts. Moreover, the decline of fish resource in coastal areas, especially in Java North Coast, is also caused by sea environment degradation due to pollution from land areas. Therefore, overfishing symptom also influences fishermen income level 4) Limited human resource skill and fishing gears technology The majority of national fishing business is small scale business with limited human resource skill and not complimented by sophisticated fishing gears technology, such as fish finder, freezer, and so on, which can cause fishing business to be more efficient with high quality products. Without adequate knowledge and supporting technology, fishing business becomes an uncertain business, inefficient, and with low quality products. It will influence production cost expense, especially for human resource cost. It will also influence the captured fish price. Consequently, it will influences fishermen income level. 5) Profit sharing and Raman management system Profit sharing system in several regions is considered to cause losses to the boat crews. Unfair profit sharing system creates a significant income gap between boat Final Report Page 169

180 crews and boat owner. The work relationship pattern between owners and labor fishermen is built based on a tight and unequal patron-client relationship. The owners built an economic dependency relationship pattern on their labors. Fishermen income on the sea which is inconstant and uncontrolled lifestyle often create debts relationship with the owners, and gap is easily created. The owners are consciously binding their labor with their economic capacity. Consequently, demand position of labor fishermen grow weaker. Labor fishermen helplessness in facing this system is more complicated to handle, even more due to their low individual capacity. It will cause poverty to always chase the labor fishermen. 6) Fisherman requirement and definition One of the main factors predicted to cause low productivity in fishing business is the relatively great amount of fishermen which is continues to increase every year. From other perspective, the available fish resource potential is relatively constant and even declines in or degraded in several waters. It is because the profession as a fisherman is still an informal profession, which means that everyone can be a fisherman without any special requirements. In addition, from the discussion result with several fishermen (in Pekalongan, Pati and Lamongan), fishermen are generally jumped into fishing business as the last resort in finding employment. It is added with the unclear and measureable definition of fisherman, thus many of assistance and training programs as well as infrastructure support for fishermen is fully appropriate. Consequently, fishermen could never be separated from poverty. It is time to make efforts to rationalize the fishermen number, especially traditional fishermen, through a clear and measurable definition of a fisherman as well as formalization of fisherman profession; or in other words, the profession as a fisherman should has minimum requirements and clear identity. 7) Inefficient licensing process FGD and interviews with various parties, both regional government and business operators, revealed that one of the obstacles in capture fisheries business is the complicated/long and complex licensing process, with a relatively high cost (official or unofficial). Fishermen expect the licensing process to be simplified with an affordable price. This licensing problem is frequently found in capture fisheries business. Compared to other developing countries, Indonesia is still inefficient in terms of business licensing process, including in capture fisheries business. Even Final Report Page 170

181 more so in the current regional autonomy era, not a few local government which had positioned business licensing as the source of local income. This is indeed a strange thing. Because, business licensing process as the local income source is equal to collect tax on investment. Whereas what should be the taxed object is not business capital, but the business product. It clearly becomes additional production cost to be borne by fishermen, which in turn will reduce income gained by fishermen. 8) Fisherman insurance Fishermen problems are complex; problems when they re about to sail, during sailing, and after sailing. Fishing business is a high risk job, especially during fishing on the open sea. Risks that frequently faced by fishermen are damaged or missing fishing tools, not optimized fishing operation, fishermen security threats such as boat sinking, fishermen sinking, missing, etc. Therefore, fishermen insurance is also an important factor which indirectly influences fishermen income level, because with fishermen insurance, they will be more assured in controlling unpredicted expenses when there are accidents. 9) Capital access From result of discussion with several fishermen in Centra Java north coast (Pekalongan and Pati) and East Java (Lamongan), small fishermen (small business scale or labor) are mostly unable to provide their own capital. They sail with capital loan gained from boat owners. There is almost no one who received any capital loan or credit from official financial institution or banking. It is difficult for fishermen to fulfill the requirements from the financial institution/banking. Meanwhile, capture fisheries cooperative institutions in several regions have fund limitation to help fishermen capital needs, it s even frequently found that cooperative could not provides capital for fishing operation for its members. Meanwhile, in the business world including fishing business, capital availability is an important factor which determines the course of production process and business success. Therefore, adequate capital availability is an important factor to escape from poverty. Final Report Page 171

182 6.6.2 Fish Cultivator 1) The amount of cost proportion and high fish food price Fish food is a production factor with a great role in fish cultivation business. A problem that is currently being faced by cultivators is high fish food price which cause production cost to increase, which reduces fish cultivator s profit or income. Fish food is a biggest funding component (40-80%) in an intensive fish cultivation business especially household consumption fish types. An effort that can be implemented to reduce fish food cost is by providing homemade fish feed with good quality and more affordable fish food price. Data from Marine and Fisheries Department (2012) reveals that the average volume of fish flour import is tons per month or per year, including 60% for husbandry feed and 40% for fish feed. It is also stated that imported fish flour dominates 80% from the total of national fish feed needs. An effort to handle the problem is by using other raw material as a substitute for fish flour, which has lower price than fish flour but equal nutrient quality, particularly in the protein content and composition. Other requirement to be fulfilled by the substitute raw material is the continuous availability for the whole year. Table Volume (tons) and Value (US$) of Imported Raw Material/Fish Feed Raw Material Volume (Ton) Year Average Year Increase (%) 2013*) Value (USD) Volume Value (USD) Volume Value (USD) Vol. Value Volume Value (USD) (Ton) (Ton) (Ton) Fish Meal , , , , , ,81 65,95 48, , ,26 Soybean , , , , , ,75-4,28 7, , ,08 Wheat , , , , , ,21 11,43 33, , ,79 Fish paste , , , , , ,42 28,92 34, , ,65 Vitamin 301, ,00 383, ,49 392, ,00 14,72-49,99 90, ,00 Mineral 4.359, , , , , ,00-19,04 3,70 959, ,00 Yeast 2.086, , , , , ,85 31,04 66,49 678, ,29 Oil 3.427, , , , , ,09 135, , , ,17 Squid Meal 2.323, , , , , ,08 17,75 21, , ,68 Corn 617, , , ,73 484, ,05 43,86 91, , ,35 Final Report Page 172

183 Process ed food Seed feed 624, ,30 810, , , ,35 118,7 2 7, , , , , , ,31-2,68 506, ,84 471,26 971, ,76 Others 4.655, , , , , ,99 5,52-14, , ,40 Total , , ,79 5 (Source: Ministry of Marine and Fisheries, 2013) , , ,02 19,15 36, , ,27 Boks 3. Herbal Catfish: with Alternative Feed, Increasing Profit Fish feed is one of the biggest components in fish cultivation cost structure, including catfish. Therefore, fish cultivator should find other protein source other than fish flour which is mostly imported and increasingly expensive. To overcome the expensive fish food, I tried several feed alternatives. One of the best is mata lele said Sugiyatno, catfish cultivator which also holds the position as Village Head of Pampang, Paliyan District, Gunung Kidul, Yogyakarta. Mata lele is a kind of water plants that usually find in the region. Namundemikian, karenajenistumbuhaninimempunyaikandungan protein rendah, perlulebihbanyakjumlahpemberianpakan per haridibandingkandenganjumlahpakankomersial. However, because it has low protein content, more amount of feed per day is needed compared to commercial feed. It is important to note that due to the low protein content, the density of pond stocking should be reduced. One method is to implement different feed management. According to Sugiyatno, until the fish is three weeks old, it is given commercial pellet feed. After that, the fish is adapted to several alternative feeds in the form of leaves, such as sesbania leaf, corn leaf and mata lele. To get it around, longer harvest time is longer namely approximately 15 days from full commercial feeding. My cultivated catfish is called herbal catfish, with more tasty and healthier meat so there are a lot of people who wants it, including official wives he said cheerfully. 2) Business Scale Fish cultivator in Indonesia is dominated by small scale cultivators. Small scale fish cultivation business for marine fish cultivation business is < 50 m 2 land area, pond Final Report Page 173

184 cultivation is < 1 Ha, fishpond is < 0.1 Ha, keramba and floating net cultivation is < 50 m 2, while wetland cultivation is 0.5 Ha per cultivation household with simple technology application. Meanwhile, according to various research results, cultivation business will gain considerably high profit if conducted in an adequate business. It is because the fixed cost incurred by big scale fish cultivator will be more efficient than intermediate scale and small scale cultivation. Boks 4. Business Scale, The Key for Catfish Cultivator Welfare Catfish business, if less than 10 ponds (approximately 50 m 2 in size), we will only gain the initial capital said Mr. Darseno, one of catfish cultivator figure in Catfish Village in Tegalrejo, Mangkubumen village, Sawit-Boyolali. The business size (economic scale) needs to be considered in order for cultivation business to improve fish cultivator welfare. Considering that business profit is the family income, if fish cultivation becomes the main employment there should be a planting pattern, both individually and collectively. It is done to prevent abundance production which tends to reduce price. If the number of cultivation ponds is only a few, income from cultivation business is unable to fulfill family needs. Therefore, farmer forced to find additional jobs, such as land manager worker or even harvest labor. Mr. Naryanto (Staff of Husbandry and Fisheries Department, Boyolali District) added, if the number of ponds is only a few while the business capital is loaned by someone else or bank, catfish cultivator is actually merely the labor of capital owner.. 3) Capital Capital limitation and the difficult access for capital for cultivators make them not free to expand their business scale or apply technology for business efficiency. According to the data of Capital Investment Coordination Agency, fisheries investment during tends to declines. There is an assumption that funding on fisheries sector is intimidating. In December 2009, credit portion for fisheries sector is only Rp 3.34 billion or grows by 0.23 percent from total of national banking credit (Rp 1.700s billion), with NPL percent. Final Report Page 174

185 4) Energy, road and water infrastructures Cultivation production increase is hampered by infrastructure constraint; production process, fish processing, marketing. The infrastructure constraint consists of electricity supply, fuel, road, irrigation system, clean water, cold storage, and underdeveloped processing industries. In fisheries cultivation, infrastructure fulfillment such as outlet and inlet in pond cultivation areas, access road, electricity infrastructure as well as other infrastructures become significant both for commercial cultivation and society cultivation scale. The failure on cultivation fisheries industry in Java north coast is significantly influenced by the lack of outlet and inlet function which influences water quality. Infrastructure inadequacy is also encourages the unexploited fisheries cultivation lands in potential regions in Indonesian east region such as Sulawesi, Maluku and Papua. The lack of infrastructure which encourages seed/breed supply had caused fisheries cultivation business (industrial scale and individual scale) to be underdeveloped, with low productivity and even production failure even in rich and fertile lands such as Mahakam Delta waters in South Kalimantan. Milkfish cultivation in production centers which traditionally cultivate milkfish, such as Lamongan, Gresik and Sidoarjo, is also experiencing obstacles due to the low quality of fish feed bought from the supplier, which is caused by the limited infrastructure. 5) Market trade system Market is a very important thing in every business. Long marketing channel will cause consumer to get a high price, but without producer (fish cultivator) getting any high price due to the amount of marketing agencies (trader) who gains profit, thus inefficient. 6) Technology and production system In Indonesia, there are at least 13 systems of fisheries cultivation which are conducted to produce fish. They are calm water pond, running water pond, floating net, stationary net, keramba, kobongan, penculture, enclosure, longline, raft, aquarium and ranching (via restocking). Every fisheries cultivation system has particular system components, such as pond with dyke, bottom of the pond, inlet, outlet, water input and drainage channels as its components. Final Report Page 175

186 Technologies used by most of fish cultivators especially in small scale business are simple technologies. It is caused by the limited education, capital and access of technology. Fisheries cultivation technologies applied on small scale business are generally use simple/traditional technologies. Technological access is very limited while constructing the production place, selecting cultivation location, determining the planting pattern, high quality seeds and appropriate stocking density, feeding with appropriate amount, quality, time and manner; pest and disease control, water management, control, harvest, and post-harvest handling. This condition causes cultivation fisheries operation to be less optimized or having low productivity. Final Report Page 176

187 VII. POLICIES AND STRATEGIES ON FISHERMAN AND FISH CULTIVATOR WELFAREIMPROVEMENT According to the previous explanation, there are a lot of factors contributing to fisherman and fish cultivator welfare. Conceptually, these factors will influence family income and expense, both for consumption and production process. Referring to result of terms of trade components analysis, the price dynamic underlying the over time price index is an important factor. In relation to the price dynamic, to improve fisherman and fish cultivator welfare in terms of trade concept, price of production input and consumption goods, as well as production goods price need to be controlled. If the control on production input and consumption goods price is aimed to control price increase rate, control on production price goods is to stabilize production goods (sell) price. However, in welfare measurement using economic indicators, price also influences family income and expense. Therefore, intervention could be implemented on income increase and its management aspect, and on expense aspect. The government had done many policy interventions aimed to improve fisherman and fish cultivator welfare. Several policies are fundamentally needed in the future. They are needed to improve fisherman and fish cultivator welfare while improving NTN and NTPi. The activities are mainly follow-up activities but there are few new implemented activities. It is important to understand that welfare improvement policies are multisector activities due to the nature and problems, so these activities are shared activities of all ministries or non-ministerial institutions, as well as involving central and local governments. The policies needed to improve fisherman and fish cultivator families welfare while also improving NTN ad NTPi can be categorized into: A) Policies related to capture fisheries business (fishermen); B) Policies related to cultivation fisheries business (fish cultivators); C) Policies related to fisheries development in general; D) Policies related to fisherman and fish cultivator empowerment; and E) Policies related to facilities provision for individual and family needs (such as food, apparel, residence, health, education). A. Policies related to capture fisheries business (fishermen) development Fisheries communities especially fishermen are still identical with poverty. The fact on the field shows that fishermen life in Indonesia is still raising concern. It is due Final Report Page 177

188 to several factors. According to Satria (2002), poor fishermen are mostly due to lack of access to modern technology, low quality of human resource and very low productivity level. In addition, fishermen economic life also depends on capital owners, namely boat or fishing gears owners as well as enterprise owners who are ready to provide boat needs to sail. The limited capacity of fishermen in developing their economic life caused them to easily being strangled by loans borrowed from enterprises owners. Poverty in fishermen communities are mostly caused by structural and cultural factors. Cultural factor is characterized by limited capital and technology, laziness, spree lifestyle, poor management, and limited natural resource. Meanwhile, from structural viewpoint, poverty is caused by external influences, such as being evicted during development activities as experienced by many fishermen communities living in coastal areas. Limited access to capital, top down government policy implementation and policies that are not oriented on local fishermen empowerment and participation, low bargain position in marketing process, limited infrastructure, and low fishing product handling. Therefore, in the effort to improve fisherman families income from capture fisheries business to get them out of poverty, the following efforts should be carried out: 1) Refining profit sharing system and revision in fishing business In general, non-industrial scale (small to medium business scale) fishing business in Indonesia applies catch sharing system for salary. This system is varied between regions or between fishing gears types. Different with daily wage salary system used in industrial scale fishing boats, catch sharing system is able to provide incentive to fishermen to work hard. In this catch sharing system, fishermen gain the portion from their hard work in increasing work productivity. In addition, catch sharing system encourages fishermen and owners to share the production and market loss. However, the current catch sharing systems in several regions are unfair and create significant income gaps between labor fishermen and boat owners For illustration, catch sharing system found in portable trap boats (5 GT) in Java waters is described. If fish catch is HT rupiah, boat maintenance and fishing gears cost is BP rupiah and operational cost is BO rupiah. Therefore, net fish catch (HB) = HT (BP + BO) rupiah. Half of HB is the portion for boat owner, while the other half is for fishermen working on the boat (labor fishermen and captain). Next, captain as the boat leader will manage the catch sharing from 0.5 HB among them. Individually, labor Final Report Page 178

189 fishermen will get smaller proportion than what the captain gets, because the portions they get have to be shared again among them. The more number of labor fishermen involved in the fishing activity, individual will get even smaller portion. Boks 5. Catch Sharing System Refinement: Encouraging Fair Unity It couldn t be denied that in one fishing activity process a good synergy between various parties (capital owner and fishermen) is needed. In this context, catch sharing between the two parties is crucial. The result from site visit revealed that the catch sharing system is still not pro-fishermen. We, the capital owners, also have pretty big risks, therefore need a bigger sharing portion to anticipate boat or engine damage, even boat sinking, where there isn t any insurance for this business.. said one of the boat owners in Brondong. As an illustration, based on the on-site information, if fish catch sell value is less Rp 100 million, Rp million will be cut down for engine and boat maintenance, and it will be given to the enterprise owner. The rest (Rp million) is cut for operational cost. If the operational cost is Rp 30 million, the portion to be shared is RP million. This portion is shared with a 60:40 pattern, which means that 60% of it is for the enterprise owner and 40% is for fishermen; or 50:50, where both parties get 50% each. In 50:50 sharing pattern, the portion for fishermen is approximately Rp 25-Rp 30 million. This amount and then shared again by the captain, where the ratio is 30:10. It means that if there were 8 fishermen including the captain, the amount will be divided by 10. Where the captain gets Rp 7.5-Rp9 million; while the labor fishermen only gets Rp 2.5-Rp 3million each. The change of this catch sharing system is often being opposed by the captain, because the captain also gets 5-10% bonus from the enterprise owner said one of the FGD participants who used to be an enterprise owner. It means that the captain will get additional Rp 3 million. Thus, the amount he gets is totaled in Rp 12 million for one fishing trip from Rp 100 million sell (raman), while fishermen only get Rp 2.5-Rp 3 million. From the case mentioned above, catch sharing formula applied indicates that half of the maintenance cost (BP) and operational cost (BO) during fishing operation is the responsibility of fishermen, and the other half is the responsibility of boat owner. This responsibility sharing is actually unrealistic, because it s impossible for fishermen to provide maintenance and operational fund which from their own savings. It is a given that maintenance and operational cost are the responsibility of boat owners, even if not 100%, but responsibility of boat owner on maintenance and operational cost should be greater than fishermen who works on boat. The development and revision on catch Final Report Page 179

190 sharing system through a fairer risk sharing will help fishermen to escape from the poverty threshold. In addition, for boat owners will also gain benefit of having work force that is healthy and high spirited with high loyalty. Generally, fishermen salary system in Indonesia is implemented with catch sharing system, especially for non-industrial scale boats (less than 30 GT). Every region has its own profit sharing system, where in one region the ratio between owner and worker is 60 : 40 from net revenue, and in another region the ratio could be of 50 : 50, and sometimes 40 : 60 from net revenue. In addition, catch system sharing is also determined by other factors, such as: fishing gears and the duration of trip. For example, catch sharing system found in portable trap boats (5 GT) in north Java coast. If fish catch is HT rupiah, and operational cost is BO rupiah. Therefore, net fish catch (HB) = (HT - BO) rupiah. Half of HB is the portion for boat owner, while the other half is for fishermen working on the boat (labor fishermen and captain). Next, captain as the boat leader will share the 0.5 HB collectively among them. Captain will get 3 portions from 0.5 HB and each fisherman will get 1 portion from 0.5 HB. From the case mentioned above, catch sharing formula applied indicates that half of small boat operational cost during fishing operation is the responsibility of fishermen, and the other half is the responsibility of boat owner. This responsibility sharing is actually unrealistic, because it s impossible for fishermen to provide maintenance and operational fund which from their own savings. Fishermen can only fulfill their responsibilities in funding the fishing operation if they have access to credit market. Thus, it shows that the relationship between boat owners and labor fishermen in general is tied by a single economic transaction, namely the work relationship between employer and labor. In the transaction that is frequently practiced in market economic system, labor service is exchanged with a reward in the form of share of production result. Different with daily or monthly wage system practiced in industrial scale fishing boats, this catch sharing system gives incentives to fishermen to work hard. With this catch sharing system, fishermen will get their portion from their hard work in increasing work productivity. Catch sharing system also reduces the risk for boat owner and ensures salary giving which is in accordance with the amount of fishing result. In addition, catch sharing system also encourages the fishermen and the employer to share their production and market loss. However, several research results show that income distribution from catch sharing pattern is unbalanced between boat owner and labor fishermen. In general, net Final Report Page 180

191 sharing received by the labor fishermen and boat owner is 50:50. However, the portion received by the fishermen is divided again by the number of fishermen involved in the boat activity. The more the fishermen, the portion an individual gets is smaller. In addition, the general pattern of catch sharing system in several regions shows that the boat owner also gain 15% from gross amount of catch as the reserved portion if there was a boat or fishing net damage. Thus, boat owners averagely gain 65% from the whole catch result. Conversely, fishermen will gain far smaller portion compared to the owner. The portion for fishermen is based on their involvement. Therefore, an effort to increase fishermen income in accordance with their hard work is by refining the catch sharing system between fishermen (operator) and boat owners to be fairer and based on the risk borne by each party. 2) Provision of Diesel Package Dealer for Fisherman in fisheries production centers As previously known, fuel is the main production factor in fishing business. In small scale capture fisheries (less than 5 GT) 50% to 70% of production cost is spent on fuel. Thus, adequate fuel provision with official price established by the government is needed by small business scale fishermen. However, in reality the fuel price is far higher than the highest official retail price, due to the fuel scarcity or far distance of official gas station from fish anchor location. Therefore, to control fuel price to be affordable by fishermen, the following efforts can be implemented: a) Diesel Package Dealer for Fisherman expansion to capture fisheries centers b) Hybrid or alternative energy development as fishing boat power source Final Report Page 181

192 Boks 6. Fuel : Fishermen Livelihood Fuel is a production input which highly determines fishing business. However, fishermen are often faced by fuel scarcity. Price increase is not a problem, as long as the products are available. The current condition is that the price increased without the availability of products complains a boat captain during discussion in PPN Brondong. Fuel cost could reach 60-70% from fishing business cost structure, depends on the size of fleets and fishing gears. Actually, the government already provides fuel with subsidy for fishermen, with Diesel Package Dealer for Fisherman program. According to the policy, a fisherman can buy diesel with subsidy price, not industrial price. However, the amount of fuel is limited to 25 kilo liter per month for each fleet. Moreover, the amount that the fishermen need is higher than supply availability. Therefore, there is often diesel scarcity while the needs are still high. Thus, programs similar to Diesel Package Dealer for Fisherman should be followed by additional quantity or service quality. 3) Capital Facility As discussed previously, small business scale fishermen are often incapable of providing their own capital. They sail with loan capitals gained from boat owners or enterprise owners. It is a major concern because adequate capital availability is an important factor for fishermen to escape from poverty. As an illustration, with improving fishing capacity, small fishermen and labor fishermen can catch fish on waters with longer distance from the coastal areas. By catching fish on deeper and further waters, they can expect better catching result. It is because fish stocks in deep waters are relatively have higher chance compared to in coastal waters that already showing symptoms of overfishing. However, to improve fishing capacity, greater capital is needed to purchase and operate more advanced fishing gears. As poor fishermen, they can t possibly fulfill their additional capital needs from their own family. Final Report Page 182

193 The only chance for small fishermen and labor fishermen to gain additional capital is through loan from external parties. External parties can be from formal financial institution (bank) and informal financial source (boat owners, fish gatherer, etc.). However, to this date small fishermen or labor fishermen are almost impossible to access credit from formal financial institutions, especially banking. In fact, government can easily control these formal financial institutions through particular policies. There are two factors hampering small fishermen and labor fishermen access to formal credit market. The first factor is inability to fulfill various banking requirements to gain credit, especially collateral issue. The second factor is that the interest rate burdened by bank to the fishermen is perceived too high for small fishermen and labor fishermen. In summary, with the current condition of loan requirements and interest rate, small fishermen and labor fishermen are impossible to access banking credit. Considering that the fisheries sector is one of the poverty enclaves, opening access to formal credit market through special scheme can be an effective instrument in improving fishermen family income to get out from the poverty. Of course, special credit scheme design should consider the past experience on various factors hampering similar programs to be effective and efficient. The design of special credit scheme for small fishermen can be in the form of low interest rate, flexible accessibility, uncomplicated process to be bankable, business assistance and program credit. 4) Production Input Support (fishing tools, fuel, ice factory) The majority of Indonesian fishermen are ones with small business scale ( 5 GT boat). One main problem that is frequently found is production cost to sail which continues to rise due to the increase of production input price. Thus, to help improving small fishermen welfare, they need to get protection from government through the provision of subsidy or production input support. The need to control capture fisheries production input cost problems are related to the limitation of small fishermen to access production facilities, due to the increased price, both because of inflation and the impact of foreign exchange fluctuation because several production facilities are imported. Meanwhile, a continued fish production for domestic demand is still depends heavily on small scale fishermen with less than 5 GT boats. In the end, the continuity of high quality fish production becomes a dilemma for small fishermen, because they have to use their fund to purchase production facilities for their next fishing process, but they also need to fulfill their family needs. Without any Final Report Page 183

194 support (in this context is government support), small fishermen will always face the same dilemma and strangled in the poverty circle. Therefore, government should cut off the poverty circle by providing subsidy or production input support for small fishermen with the focus on production facilities which become the main components of production cost, such as subsidy or fishing tools support (fish finder, fish aggregating device, solar cell), fuel subsidy, and ice subsidy or supports on iced storage. Of course, the provision of subsidy or other mechanical support should be followed by training programs in operating and maintenance to prevent technological lag. 5) Licensing Simplification In Indonesia, there are several license documents related to capture fisheries business, with the most common are Fisheries Business License (Surat Izin Usaha Perikanan-SIUP), Fish Catching License (Surat Izin Penangkapan Ikan-SIPI), Sailing License (Surat Izin Berlayar-SIB). However, the process or procedure needed to get the licenses, especially for small and medium business scale (< 30 GT boats), is still unstandardized and not transparent in all regions; especially in the current local government era, where there are a lot of local governments who positioned licensing as the source of local income, which makes licensing process as interesting toys for naughty officials. With unstandardized and not transparent licensing procedure, unofficial or illegal charges are easily emerge. Based on the interview with several fisheries business operators (small, medium and big scale), a factor that becomes cost burden in fishing business is licensing process that is complicated and not transparent with expensive unofficial cost. The fishermen expect that licensing process will be simpler with standardized and transparent procedure. It is expected that licensing process simplification will eliminates or prevents illegal charges so that expense cost borne by fishermen will be reduced and in turn will increase their incomes. 6) Market Information Network and System Development With population of approximately 250 million people, domestic market potential for fish products is actually very high. However, in reality, this potential is not wellmanaged. It is indicated by unequal distribution of capture fisheries products, so there Final Report Page 184

195 are regions with fish abundance and other regions with shortage of fish. Consequently, fish sell price received by the fishermen fluctuates and even very low due to fishermen s low bargain position. If fish production is distributed equally to every regions of Indonesia, there will be an increase in domestic market absorption capacity, which means it will improve the market for capture fisheries products. By the increase of fish demand, fish price received by fishermen is expected to rise and will influence fishermen income, especially small scale fishermen. An effort to be done to optimize domestic fish market is to develop the market information network and system. In general, fishermen in Indonesia do not sell their products directly to end consumers. The two economic actors are usually connected through trader inside a long trade chain system. Consequently, fishermen will find it hard to escape from poverty because their fishing products are difficult to sell with decent price, while the end consumers who live relatively far from fish production center will find it difficult to buy fish with affordable price. It clearly causes loss, both for fishermen and for end consumers. Therefore, the long trade chain system should be fixed in order to establish an optimized domestic market. Government also needs to develop credible and efficient market information system for fish commodities to balance fish supply and demand, so that fish from fishermen could still be sold with decent price and Indonesian people needs for fish can be fulfilled with affordable price. In addition to domestic market, the export market for fisheries products is also vital for Indonesia; not only for foreign exchange revenue but also for fishermen communities income improvement as well as employment provision for the whole society. Thus, access to export market for fisheries products is an essential thing for Indonesia. A prominent phenomenon in this globalization and free trade era is the fact that competition in export market is growing more intensive over time. This market competition is found in almost all export markets, both for manufacture and service industries products, and primary products including fisheries products. The tight competition makes consumer as the purchasing group to hold a very strong bargain position in the market. Consumers as buyers are not only able to control price on the level that benefits them, but also dictate the quality requirements to be fulfilled by exporters, so that their products are received in the export market. Competitiveness is the key to win the competition in export market. Competitiveness can be built through two things, namely by developing efficient trade Final Report Page 185

196 system network and credible market information system. With efficient trade system network, production cost and product distribution will be efficient, and enable the producers to offer their products with competitive price. Next, market intelligence is a crucial thing in the dynamic market where the producers intensively competing to develop their market target. In the dynamic market, competition strategy is an important factor in determining product competitive advantage. An appropriate and effective strategy will improve product competitiveness, while competition strategy which is inappropriate and ineffective will end in the decrease of product competitiveness. Producers could only develop an appropriate and effective competition strategy if they have strong market intelligences. In order to have strong market intelligences, a credible market information system is needed. 7) Fish Habitat and Resource Management The main problem in capture fisheries sub-sector is the weak effort in fish habitat and resource management. This is indicated by unequal distribution of fish resource exploitation in every water areas. A lot of marine waters in west and central regions of Indonesia are showing overfishing symptom, such as in Malaka Strait, Sumatera east waters, Java Sea, Bali Strait, and Makassar Strait. But from other viewpoint, there are a lot of marine waters in Indonesian east region with not optimal fish resource exploitation (underfishing). Consequently, in over-exploited fishing areas the fishermen are poor because the fishing result per boat unit continues to decline. Moreover, it causes conflicts between fishermen operating in the same region. In under-exploited fishing areas, the valuable fish resource is abandoned, and even in some areas the resources are exploited by fishing boats from other countries illegally (illegal fishing). If fish resource in under-exploited areas is exploited in an appropriate and optimal manner, it will give a significant contribution on communities welfare improvement, especially fishermen communities. The majority of capture fisheries fleets in Indonesia are small-scaled, but due to the uncontrolled growth of fleets, almost there is an over-exploitation in all coastal areas with dense populations. Even though there is an effort from the government to control fleets number in big or industrial scale fisheries, it is also ineffective. Therefore, the open access policy should be left behind and replaced by limited access policy, especially for small and medium scale fishing business. This management policy is of course will spend a lot of efforts and energy as well as time. Therefore, there is a need Final Report Page 186

197 to establish a special program to implement the limited access policy and fish resource exploitation which is based on carrying capacity. Perhaps it is time for some marine waters areas to implement moratorium in order to stop the growth of new fishing boats. Government lateness in controlling fishing boats amount in particular waters is the main factor for over-exploitation, which is the impact of policies that let new fishing boats without any requirements. In fact, Food Agriculture Organization (FAO) had issued a guide on fish habitat and resource sustainable management through Responsible Fisheries Code of Conduct in 1995, which should be implemented by the government. Sustainable capture fisheries management will also encourages sustainable improvement on fishermen income. 8) Fishing Management and Operation Improvement Quantitatively, the number of fishermen or capture fisheries human resource in Indonesia is considered a lot or even too many. However, if considered carefully, the great amount is not followed by the quality level. According to fisheries human resource education quality estimation (Marine and Fisheries BPSDM, 2006), the majority if fishermen has low education, namely 60% with elementary school education and only 0.25% with Diploma 3 and Bachelor degree education. In addition, the majority of Indonesian fishermen don t have adequate skill to work, even more if associated to the current maritime international standard, almost all (> 95%) fishermen doesn t met the standard. Fishermen job is still categorized as informal job, where anyone is free to jump into the profession as a fisherman without any particular requirements. In fact, in Indonesia, profession as a fisherman is coercion, where people choose to be a fisherman because they cannot find any other employment in land (formal or informal). Given the fact that profession as a fisherman is not the main option and without any skill or ability to work on the sea, they mostly work unprofessionally. In addition, they also don t have strong mentality and resilience to work on sea in long durations. Consequently, many only operate on coastal waters. It becomes one factor contributing to the over-exploitation in some Indonesian coastal waters. Even with the fact that this concern already being acknowledged since long, there is no significant breakthrough to overcome fishermen quality problem. Fishermen quality is closely related to fish resource management and exploitation in Indonesian Final Report Page 187

198 waters. Higher fishermen quality is expected to improve and encourage efficient and sustainable fish resource exploitation. In facing the globalization era, improvement on fishermen quality is an absolute thing to be able to compete with human resources from other countries. In order to improve fisherman quality, government can implement practical trainings about responsible fishing activities according to Responsible Fisheries Code of Conduct issued by FAO. Meanwhile, for intermediate and long term, government needs to define Indonesian fishermen profession through a clear and firm definition, so that the profession is no longer a garbage bin, which makes it difficult to manage and develop optimized and sustainable national capture fisheries. To this date, labor fishermen salary system on small or household scale fishing fleet is still using catch sharing system. In this system, they will gain high income during harvest and almost nothing during fish shortage. Actually, this system is good and fair, but due to the low quality of Indonesian fishermen (especially labor fishermen), they cannot manage their money well. During fish season, fishermen are usually spent all of their money for spree, while during fish shortage they look around for loans. It will cause them to be drowned in debts, and make them working as fishermen only to pay for their debts. Thus, business management should be fixed with particular modifications to help labor fishermen to manage their income. This way, they can still live in prosperity during fish shortage season. Business management for small scale fishermen should be done in groups, because it will help them to manage their financial state in one management, and they will indirectly forced to follow the existing rules in their income management. It is expected that with one professional business management group, fishermen lives will be more welfare and assured, along with a better bargain position. From other viewpoint, government will find it easier to control the management group rather than to control individuals. In addition, fishing operation management system is also needs to be refined to be more efficient. Similar with business management, fishing operation system in groups will improve fishing business efficiency, particularly in terms of fishing operational cost because each boat doesn t have to go back and forth from fishing ground to fishing base in every operational trip. In fishing operation, the management of fish handling on boat is also needs to be refined. It is because a good fish handling will maintain the fish freshness, and makes the sell price to be better than fish that is no longer fresh. Therefore, fishermen income will also optimal and increased. In addition to increasing fishermen income, on-boat fish Final Report Page 188

199 handling management refinement will also help the government to ensure food security for fish commodities. 9) Fisherman Insurance (work accident and death) Capture fisheries business is a high risk business, because there are a lot of factors that could not be fully controlled, such as weather or climate. Particularly for small scale capture and cultivation fisheries business, the chance of failure is higher than industrial scale business. If there was a business failure, fishermen will find capital loan that can be conveniently accessed, however the loan is usually has unbelievably high interest rate, thus making the fishermen to be strangled by debts and stay in the prolonged poverty circle. In addition, marine fishing business is a business with big risk, especially risk for accident. It can cause boat and fishing gears damage as well as disablement and even casualties (death). Therefore, fishermen insurance is an important factor that can cut off the chain of poverty causes. It is expected that with the appropriate insurance, fishermen business will be more secure, and not trapped by continuous debts in the event of business failure. B. Policies related to cultivation fisheries business (fish cultivators) development Poverty is also reflected in the life of fish cultivators, especially small scale cultivators. Issues of technology, production input high price, limited capacity and capital access, human resource quality factor, are the factors contributing to poverty found in fish cultivators. Limited capital access will cause the inability to achieve efficient business economic scale, which will push them deeper into poverty or even crush their cultivation business. The followings are policies expected to be able to improve fish cultivators welfare as well as improve fish cultivation business: 1) Capital Facility Capital facility through accessibility improvement, assistance to make fisheries cultivation bankable, and continuing program credit for fisheries cultivation special activities with the refinements on the mechanism and identification as well a more target-appropriate distribution. Final Report Page 189

200 2) Fish Cultivation Production Cost Control Cultivation fisheries business cost control is done by reducing direct and indirect expenses which don t have any impact on the dumping practices, thus reducing the risk of claim in the competition. Several activities to be implemented are a) Cultivation land tax reduction b) Local content strengthening for fish feed production c) Infrastructure establishment (road, electricity, and water) d) Mass ecosystem-based cultivation system development 3) Cultivation Business System Strengthening Cultivation business system strengthening is aimed to encourage business efficiency, thus improving business independency and profitability. Several activities to be implemented are: a) Trade system and market information system development b) Business management assistance (training and assistance) c) Cultivation product and business diversification 4) Spatial Layout Protection and Clarity Cultivation business is frequently faced by significant obstacles due to territorial space allocation or spatial pattern change, which is initially for cultivation fisheries and then allocated for other activities especially industries. It causes great loss to cultivators, and could even destroy their business, especially for those that are sensitive and have high investment value such as prawn cultivation, fish and pearl oyster mariculture business. Therefore, there is a need to ensures spatial pattern and not altering the existing pattern in a long term. 5) Good Aquaculture Practice (CBIB) and Good Seeding Practice (CPIB) Implementation Implementation dissemination of Good Aquaculture Practice (CBIB) and Good Seeding Practice (CPIB) is needed to ensures cultivation product success, improve fish cultivation business efficiency and finally able to improve production amount as well as production value of cultivation fishery business. The implementation of CBIB and CPIB is expected to ensures the survival of fish cultivation business in the long term because it can ensures the sustainability of cultivation environment. Final Report Page 190

201 6) Provision of High Quality Seed for Small Scale Cultivator Implemented through the following efforts: a) Quality seeds subsidy for small scale cultivator through Seed Agency or certified UPR b) Suppressing the quality breed price for Public Seeding Business (Usaha Pembenihan Rakyat UPR) c) Improving the broodstock center capacity and quality 7) Provision of Fish Feed, Fertilizer and Medicine Implemented through the following efforts: a) Reducing import duty for fish food raw materials, including for small scale fish feed factory. b) Improving raw material research, experiment, and mass implementation of local fish food raw materials as the substitution of imported materials. 8) Fish Cultivator Insurance (Work Accident and Death) Cultivation fisheries business is a high risk business, due to there are a lot of uncontrolled factors such as disease, environmental degradation, and water quality. The success of cultivation business couldn t be assured to be 100% profitable. Particularly for small scale cultivation business, the change of failure is relatively high compared to industrial scale cultivation business. If there was a business failure, small scale fish cultivator will find it hard to start again due to the limited capital. Generally, they will find capital loan that can be conveniently accessed, however the loan is usually has unbelievably high interest rate, thus causing them to be strangled by debts and stay in the prolonged poverty circle. Therefore, fish cultivator insurance is an important factor that can cut off the chain of poverty causes. It is expected that with the appropriate insurance, small scale fish cultivation business will be more secure, and not trapped by continuous debts in the event of business failure. Thus, fish cultivator insurance can indirectly increase or improve fish cultivator income. Final Report Page 191

202 C. Fisheries development in general 1) Fisheries logistic system (production input and production result) development Implemented through the following efforts: a) Input and production material flow system development b) Information flow system development 2) Fisheries product processing diversification Under-development on fisheries product processing had caused fish product unable to gain an optimized added value. The development of fisheries product processing diversification should be directed towards products with high added value and demanded by the market or consumers. The principle of from market to market should be the reference in developing product diversification, which means that products to be made are products that are needed and demanded by the market. In order to improve and develop fisheries processed products diversification, things that are related to issues faced in management and processing sector should be considered, such as: increased consumer demand on the quality of fisheries processed products; trend of fisheries product consumption in fresh or processed forms; and the convenience in serving on processed products. Those factors are opportunities and also threats to create processed products diversification in a way that will satisfy the customers. Fisheries product processing diversification to increase the added value can be developed through form diversification (as ready to eat or ready to used products) and modification to extrusion products (such as fish chip products to be snack ckihi which already have its own target market). The benefit gained from processed product diversification will not only increase the added value but also absorbing work force, accelerate economic growth, and improve fishermen income through the increase of fish raw material demands. Final Report Page 192

203 D. Policies related to fisherman and fish cultivator empowerment 1) Diversification of fisherman and fish cultivator family income source According to the research result, there are a lot of fishermen and fish cultivators households which only depend their lives on fisheries business activities. Box 7. PrioritasiPengeluaran: SumberKesejahteraanKeluarga Fishermen tend to be spendthrift, so they need to be taught how to manage their family financial state said several FGD participants in Semarang, which consists of fisherman figures such as fisherman cooperative chief, enterprise owner, fishing port manager, and staffs from marine and fisheries department. When the research team visited the south coastal areas of Gunung Kidul, PPI Sadeng in particular, we find interesting facts which justifies the statement mentioned above. Mr. Sarpan, the head of Fisherman Group in PPI Sadeng explained, If we get higher income, we still save it, not use it for spree. Where do we go anyway, it s already quiet at nine in the evening, so we stayed at home. He said in a flat tone. Fishermen in Sadeng still have farmer characteristics. Because based on the history, they were generally famers who tried to switch to fishing. Thus, the financial management pattern is still similar with farmers, with controlled expense and saving habit. Farmer families have a priority for family expense. It is different with the majority of fishermen in Java north coastal areas, where when they have more income they tend to have more expense. In addition, fishing commodities in Sadeng are economic fishes such as pelagic (tuna, skipjack tuna) and demersal (lobster and snapper), thus fishermen in Java south coastal areas seemed to be more prosper. This is in line with the result from Muflikhati (2010) stating that economically the fishermen in Java north coast have higher income, but fishermen in Java south coast have better prosperity. From other viewpoint, in addition to fishing, fishermen also own farms. Thus, during the difficult fishing season, they will work in their famrs. Several other regions also have good potential of tourism, such as Baron Beach, Indrayanti Beach; and create alternative sources of income. This fact is of course highly vulnerable, considering that fisheries business activities are high in risks and highly dependent on the nature. Therefore, there is a need to create various options for entrepreneurships, which can be operated by the wives or other family members. Final Report Page 193

204 2) Family assistance (family planning and family financial management) a) Family assistance in family planning (reinforcement of family planning program). The amount of goods and service consumed by the family depends on the amount of family members (family total membership). Various research results showed that greater amount of family members will reduce family welfare level. It is because the more number of family members, the greater dependant to be funded by the family. Therefore, an effort that can be implemented to improve family welfare is by providing assistance to fishermen and fish cultivators along with their families about the importance of family planning to improve life quality of all the family members. Family planning assistance can be implemented through counseling to fishermen and fish cultivators, which is incorporated in health center or PKK for wives and/or teenage firls from fishermen family and fish cultivators, or in group activities or meetings both formal and informal. Boks 8. Balanced collective decision making in household: one objective of fishermen family empowerment In patrilineal social pattern for some Indonesian communities, a husband s role as the head of household is very centralized. Even more when he is also the only breadwinner of the house, as seen in the majority of Indonesian fishermen households. A very centralized role of the husband is including in the decision making for family income utilization. In more advanced family pattern (ex, education, experience and relationship between members), the decision making process about family budget is often involving the wife role. The effort to encourage awareness of authority distribution in the decision making inside fishermen families is one of the important objectives of fishermen family empowerment, both in domestic domain and social-public. Because it will influence other decision making process, not only for income utilization. Such as family size (children), child education, nurturance, food distribution, health, mutual support, social tradition (for instance, nyumbang ), and fishermen wives economic activities. Thus, support for fishermen is not merely to improve fishing operation capacity, but only to empower the fishermen family. Final Report Page 194

205 b) Family assistance in financial management One problems faced by fishermen families is uncertain income due to the dependency on fishing season. Meanwhile, fish cultivators income is also depends on their cultivation business revenue. Therefore, a good financial management is needed so that in dry season or pre-harvest season the family needs still can be fulfilled. Assistance in fishermen and fish cultivators families financial management includes: i. Training or counseling on fishermen and fish cultivators families, especially on fishermen and fish cultivators wives about how to manage their financial. Materials that are given include how to save by prioritizing needs over wants, as well as reducing less important expenses. The interview with informants show that there are a lot of fishermen who spree their money for unnecessary things such as cigarettes and alcohols, or for not useful activities such as saweran or other entertainments. ii. Training about the importance of savings. Savings are highly important, especially during harvest season or when the income is high. Savings are also needed to anticipate any sudden expense, such as a sick family member. In addition, savings are also needed to achieve family s short term, intermediate term, and long term goals. Family goals are for example; sending their children to higher education, family recreation, hajj, and other activities which require a lot of cost. Savings can also be utilized to expand their business in fisheries or other sector. Final Report Page 195

206 E. Policies related to facilities provision for individual and family needs 1) Improving efficiency of food material, processed food, and apparels As elaborated previously, price index on household consumption components has a higher rate than production cost and capital goods gain component. Actually, it s a typical characteristic of village area economy. The highest price increase rate is for food material (0.60% per month), processed food (0.57%) and apparel (0.48%). Price control on this component should be done carefully. Because, if not, it would be disincentive for producer, where the majority is village people or related with village communities. The development of consumption goods product price can be considered as the impact of: production system dynamic and market dynamic. Price development as the impact of production dynamic is the function of production system, which is influenced by technology and input price factors. In production system that influences technical efficiency, cateris paribus will influences product increase and thus causes shifting on the supply curve. If the curve shifts to the right, it will encourage price decline, while if the technology factor pushes the curve to the left, there will be a price increase. Price dynamic as the impact of market mechanism is the result of interaction between supply and demand. Product price increase could occur if there is an increase of demand or a decrease of production, which shifts on the same curve or on the same production efficiency level. The increase of demand can be temporary or permanent, depends on the demand dynamic. Temporary demand increase occurs in a particular period of time (example, Idul Fitru or New Year). Meanwhile, permanent increase occurs in the increase of demand as the impact of permanent population increase. Production decrease can also occur permanently or temporarily. Temporary production decrease occurs due to the production technical obstacles which are caused by natural factor, (temporary) raw material scarcity or other temporary factors contributing to production. Meanwhile, permanent production decrease can occurs due to the decline of production unit amount or capacity, as well as production input scarcity. From this approach, control on household consumption commodities price can be implemented by improving production system efficiency, via: a) Production incentive and supply to ensure availability b) Production input supply chain system development Final Report Page 196

207 c) Basic infrastructures provision (energy, water, transportation) for production d) Input subsidy and tax reduction for production 2) Continuing support program for poor community in term of food, energy, education and health The benefit of poverty eradication programs published by the government through various clusters is acknowledged by the Indonesian society. It is also indicated by the decline of poor communities in Indonesia. Therefore, the programs should be continued, especially for fishermen and fish cultivators communities. The most important thing is to ensure that the programs are right on target in order for the benefits to be felt by fishermen and fish cultivators along with their families. Final Report Page 197

208 VIII. CONCLUSIONS AND RECCOMENDATIONS 8.1 Conclusions 1. Characteristics of Indonesian capture fisheries business, fishing fleets are dominated by small scale boats (5 GT) and highly influenced by season. 2. Characteristics of Indonesian cultivation fisheries business, dominated by small scale business. 3. NTN index monthly growth rate coefficient is higher than NTPi index monthly growth rate, where the NTN received price (IT) index monthly rate is higher than NTPi. 4. Terms of trade (NTN and NTPi) is more responsive to IB than to IT. 5. Factors contributing to welfare viewed from the terms of trade approach are production goods sell price change (IT), household consumption commodities, and capital goods gain (BPPBM) 6. Factors contributing to welfare viewed from the family welfare economic approach are: income, family total membership, education, resource condition and business scale, etc. 7. Terms of trade (NTN and NTPi) that is currently used is still needed to measure commodities competitive advantage, but modifications are needed to measure fishermen and fish cultivators welfare. Fishermen and fish cultivators income is not only influenced by fish price increase rate, but also by the quantity or amount of fish produced Reccomendations 1. The concept of terms of trade is a measurement concept which describes other good s magnitude (goods and service) which can be exchanged from fishery product commodity, both catch fishery and cultivation fishery. This measurement sees price as the main driving factor, by disregarding the production dynamic. It makes the measurement less representative in describing fisherman and fish cultivator welfare measure. Welfare measure should be based on family income or expense or the ratio between income and expense. 2. Terms of trade (NTN and NTPi) as the proxy of fisherman and fish cultivator welfare should be accompanied by other indicators, such as economic Final Report Page 198

209 development quality indicator, inequality or poverty index. Those indicators include gross production per capita, human development index (HDI), Lorenz curve and Gini concentration ratio, absolute and relative income index, expense per capita, poverty threshold or the poverty head count. 3. If the terms of trade concept will still be used as a single proxy of welfare, there is a need for modification by incorporating production and consumption volume component, and formulate the income terms of trade concept both for Fisherman Income Terms of trade (Nilai Tukar Pendapatan Nelayan NTPN) and Fish Cultivator Income Terms of trade (Nilai Tukar Pendapatan Pembudidaya Ikan NTPPi). The measurement can be done per semester, and not necessarily monthly. Final Report Page 199

210 BIBLIOGRAPHY Apriliani T, et.al Penelitian Panel Kelautan dan Perikanan Nasional(Panelkanas) dan Analisis Dinamika Nilai TukarPerikanan dalam Mendukung Sistem KetahananPangan untuk Pengentasan Kemiskinan. Jakarta: Balai Besar Penelitian Sosial Ekonomi Kelautan dan PerikananBadan Penelitian dan Pengembangan Kelautan dan PerikananKementerian Kelautan dan Perikanan. Behnke, MacDermid Family Well-being. Purdue University. Boarini, R., A. Johanson, and M.M. d Ercole Alternatif Measures of Well-Being. Statistic Brief No. 11, May OCED. Bryant WK, Zick CD The Economic Organization of the Household. New York: Cambridge University Press. Direktorat Jenderal Pemasaran dan Pengolahan Hasil Perikanan Warta Pasar Ikan, edisi Januari 2012, vol Direktorat Pemasaran Dalam Negeri. Jakarta. Ibenty H., Hidayatika Faktor-faktor yang mempengaruhi tingkat kesejahteraan petani ikan lahan sawah di Kecamatan Badas Kabupaten Kediri. Skripsi. Malang; Universitas Muhammadiyah Malang. /pub/. International Monetary Fund Producer Price Index Manual : Theory And Practice. International Monetary Fund, Publication Services. Washington. USA. Kementerian Kelautan dan Perikanan Kelautan dan Perikanan Dalam Angka Pusat Data, Statistik, dan Informasi. Jakarta. Kementerian Kelautan dan Perikanan Statistik Perikanan Tangkap Indonesia, Direktorat Jenderal Perikanan Tangkap. Jakarta. Kementerian Kelautan dan Perikanan Statistik Perikanan Budidaya Indonesia, Direktorat Jenderal Perikanan Budidaya. Jakarta. Kementerian Kelautan dan Perikanan, Badan Pusat Statistik Kondisi Sosial Ekonomi Rumah Tangga Sektor Perikanan. KerjasamaKementerian Kelautan dan Perikanan dengan Badan Pusat Statistik. Jakarta Laporan Penyusunan Diagram Timbang Nilai Tukar Nelayan dan Nilai Tukar Pembudidaya Ikan. KerjasamaKementerian Kelautan dan Perikanan dengan Badan Pusat Statistik. Jakarta. Muflikhati I Analisis dan Pengembangan Model peningkatan Kualitas Sumberdaya Manusia dan Kesejahteraan Keluarga di Wilayah Pesisir Provinsi Jawa Barat. Disertasi. Sekolah Pascasarjana Institut Pertanian Bogor. Primyastanto M, Soemarno, EfaniA,, Muhammad S. Economic of Household analysis and infuencial on poverty of payang fisherman at Madura Straits. European Journal of Developing Country StudiesVol ISSN (paper) ISSN (online) Purnomo, A.H. dan Taryono Ekonomi Pembangunan Perikanan. Universitas Terbuka. Final Report Page 200

211 Rachmat M Analisis Nilai Tukar Petani. (Disertasi). Bogor: Program Pascasarjana Institut Pertanian Bogor. Ramadhan A, Apriliani T, Saptanto S, Shafitri N, Hasni L Kaji Ulang Konsepsi Nilai Tukar Nelayan dan Pembudidaya Ikan Sebagai Salah Satu Indikator Perkembangan Kesejahteraan Masyarakat. Balai Besar Penelitian Sosial Ekonomi Kelautan dan Perikanan, Badan Penelitian dan Pengembangan Kelautan dan Perikanan, Kementerian Kelautan dan Perikanan. Rofiq A Manfaat Program Pemberdayaan Ekonomi Masyarakat Pesisir (PEMP) Terhadap Perekonomian Rumah Tangga Miskin Berpotensi (RTMB) Di Desa Kalirejo Kecamatan Kraton Kabupaten Pasuruan. (Abstrak Skripsi). Satria A Sosiologi Masyarakat Pesisir. Jakarta: PT Pustaka Cidesindo. Spatafora N, Tytell I Commodity Terms of Trade: The History of Booms and Busts. Working Paper. International Monetary Fund. Undang-Undang Republik Indonesia Nomor 45 Tahun 2009 tentang Perubahan Atas Undang-Undang Nomor 31 Tahun 2004 tentang Perikanan. Final Report Page 201

212 Appendix 1. National Fisherman Terms of Trade (2007=100) Details 2008 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Fishing Fisherman Received Price Index Fisherman Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Rent and other expenses Transportation Capital Goods Workforce Salary NTN Source : Statistic Agency, Final Report Page 202

213 Continued. Details 2009 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) Fishing Fisherman Received Price Index Fisherman Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Rent and other expenses Transportation Capital Goods Workforce Salary NTN Source : Statistic Agency, Final Report Page 203

214 Continued. Details 2010 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (26) (27) (28) (29) (30) (31) (32) (33) (34) (35) (36) (37) Fishing Fisherman Received Price Index Fisherman Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Rent and other expenses Transportation Capital Goods Workforce Salary NTN Source : Statistic Agency, Final Report Page 204

215 Continued. Details 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (38) (39) (40) (41) (42) (43) (44) (45) (46) (47) (48) (49) Fishing Fisherman Received Price Index Fisherman Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Rent and other expenses Transportation Capital Goods Workforce Salary NTN Source : Statistic Agency, Final Report Page 205

216 Continued. Details 2012 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (50) (51) (52) (53) (54) (55) (56) (57) (58) (59) (60) (61) Fishing Fisherman Received Price Index Fisherman Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Rent and other expenses Transportation Capital Goods Workforce Salary NTN Source : Statistic Agency, Final Report Page 206

217 Appendix 2. National Fish Farmer Terms of Trade (2007=100) Details 2008 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Cultivation Cultivator Received Price Index Cultivator Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Seed Medicine, fertilizer, fish feed Rent and other expenses Transportation Capital Goods Workforce Salary NTPi Source : Statistic Agency, Final Report Page 207

218 Continued. Details 2009 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) Cultivation Cultivator Received Price Index Cultivator Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Seed Medicine, fertilizer, fish feed Rent and other expenses Transportation Capital Goods Workforce Salary NTPi Source : Statistic Agency, Final Report Page 208

219 Continued. Details 2010 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (26) (27) (28) (29) (30) (31) (32) (33) (34) (35) (36) (37) Cultivation Cultivator Received Price Index Cultivator Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Seed Medicine, fertilizer, fish feed Rent and other expenses Transportation Capital Goods Workforce Salary NTPi Source : Statistic Agency, Final Report Page 209

220 Continued. Details 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (38) (39) (40) (41) (42) (43) (44) (45) (46) (47) (48) (49) Cultivation Cultivator Received Price Index Cultivator Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Seed Medicine, fertilizer, fish feed Rent and other expenses Transportation Capital Goods Workforce Salary NTPi Source : Statistic Agency, Final Report Page 210

221 Continued. Details 2012 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec (1) (50) (51) (52) (53) (54) (55) (56) (57) (58) (59) (60) (61) Cultivation Cultivator Received Price Index Cultivator Paid Price Index Household Consumption Food Material Processed Food Residence Clothing Health Education, Recreation, Sport Transportation and Communication Production Cost and Capital Goods Gain Seed Medicine, fertilizer, fish feed Rent and other expenses Transportation Capital Goods Workforce Salary NTPi Source : Statistic Agency, Final Report Page 211

222 Appendix ON-SITE SURVEY DOCUMENTATION FINAL REPORT Fisherman Terms of Trade Achievement Background Study Marine and Fisheries RPJMN Final Report Page 212

223 Focus Group Discussion (FGD) with Various Stakeholders of Capture and Cultivation Fisheries in Semarang Discussion with Department of Marine and Fisheries Yogyakarta Final Report Page 213

224 Interview with a Catfish Cultivator in Gunung Kidul, Yogyakarta Fish Unloading by Fishermen in PPP Sadeng, Yogyakarta Final Report Page 214

225 Interview with a Cantrang Net Fisherman in Tuban, East Java Condition of PPP Brondong Fish Auction Location, Lamongan, East Java Final Report Page 215

226 Fishing Boats in Rembang Central Java A Fishermen Residence in Jepara, East Java Final Report Page 216

227 Catfish Cultivation with High Stocking Density Pattern in Boyolali, Central Java Catfish Cultivator s Bottom of Pond Technology Innovation in Boyolali, Central Java Final Report Page 217

228 Fish Market in PPP Bajomulyo Pati, Central Java The limited fishing port area in PPP Bajomulyo Pati, Central Java Final Report Page 218

229 Interview with Fishermen and Fishing Port Managers in PPP Bajomulyo Pati, Central Java Flooding in PPN Pekalongan Fish Auction Location, Central Java Final Report Page 219