Taking Care of Fisheries Externalities

KOMPAS/RADITYA HELABUMI

Workers are busy at a stall at the Muara Baru Modern Fish Market, North Jakarta, Thursday (26/8/2021).

The government\'s plan to increase non-tax state revenues from the fisheries sector needs to consider the externalities and the readiness in implementing the new policy.

The government recently issued Government Regulation (PP) No. 85/2021 concerning types and tariffs of non-tax revenue (PNBP) to be imposed by the Maritime Affairs and Fisheries Ministry (KKP). The new regulation, which replaces PP No. 75/2015, expands the size of the ships.

With the new PP, fishing vessels with a size of between 5 and 60 gross tons are also subject to PNBP for post-production. Ships over 60 GT are subject to larger fees at different rates.

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Armed with the new PP, the KKP targets non-tax revenue from the fisheries sector to increase from Rp 1 trillion (US$1.42 million) to Rp 12 trillion in 2024. The tariff of non-tax revenue on fishery products for fishing vessels increases by up to 400 percent, with the tariff determination methodologies considered to be unfair (Kompas, 27/9/2021).

The levy collection is intended to fulfill the principle of justice for all Indonesian people.

Beginning 2022, the KKP will also implement a contract system for fishing. The policy is intended to provide legal certainty for the fishing industry, while the government can maintain the sustainability of fishery resources. We support the government\'s efforts to optimize non-tax revenues from the utilization of the country’s natural resources and services provided by the government. The levy collection is intended to fulfill the principle of justice for all Indonesian people.

KOMPAS/SUPRIYANTO

Supriyanto

Therefore, we have to implement the policy carefully. We also have to consider the externalities of the new policy. The government’s plan to increase non-tax revenue in the fisheries sector should not have a negative impact on the wider community.

One possible impact is the exploitation of southern bluefin tuna resources, if the fishery tax is imposed on all tuna longlines. The tuna catch can only be carried out by permit holders from the Southern Bluefin Tuna Conservation Commission (CCSBT) with a certain quota.

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A serious problem in the utilization of our marine fishery products is the monitoring and availability of accurate data. When foreign ships are allowed to catch fish, many of them move their catch to local ships in the middle of the sea. As a result, the reported catch numbers are much lower than they actually are. There is also a practice to lower the size of the ships in order to avoid fee payment.

Kompas/Totok Wijayanto

Tuna fish caught by fishermen arrived at Muara Angke Port, Penjaringan, North Jakata, Wednesday (11/8/2021).

The government should build a reliable system to monitor the implementation of the new tax policy so that the government’s target to increase non-tax revenue from the fisheries sector by 12 times in less than three years can be realized. Reporting of catches must be carried out immediately when the fish is caught using the internet of things, and be open to the public. We want to prevent the government’s good intention to increase state revenues from bringing suffering to small fishermen who support the lives of more than 1 million households instead of making them more prosperous.

(This article was translated by Hendarsyah Tarmizi)