Measuring the Future of Lobster Cultivation
Rather than giving investors opportunities for cultivation abroad, the government should encourage cultivation domestically.
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The government's policy to open the export faucet clear lobster seeds has sparked public discourse. Sending lobster seeds abroad is seen as counterproductive to domestic lobster cultivation. Even though it has been declared a "champion" commodity in the country, the pace of lobster cultivation is currently faltering.
The opening of clear lobster seed exports is regulated in Minister of Maritime Affairs and Fisheries Regulation Number 7 of 2024 concerning Management of Lobster(Panulirus spp), Crabs (Scylla spp) , and Crab (Portunus spp)which was promulgated on March 21 2024. Previously, the lobster seed export regulations were open and closed several times, namely exports were closed in the 2015-2019 period , then opened in 2020, closed again in 2021 and reopened in 2024.
It is noted that five joint venture companies from Vietnam and Indonesia have been granted permission to export lobster seeds. The quota for lobster seed harvesting is set at 419.21 million, or 90 percent of the estimated stock of seeds, with a target of exporting 300 million seeds per year. The government aims to generate non-tax state revenue (PNBP) from exporting seeds amounting to Rp 3,000 per seed or equivalent to Rp 900 billion per year.
Until now, Indonesia and Vietnam have been known to compete in lobster cultivation, even though lobster cultivation in Indonesia is far behind Vietnam. Vietnam is the world's largest exporter of ready-to-eat lobster, but lobster cultivation in the country has grown rapidly thanks to the supply of seeds from Indonesia.
Also read: Export of Clear Lobster Seeds Profits Foreigners
The continuously changing regulations regarding lobster management, including the opening and closing of the transparent lobster seed export rules, have not stopped the supply of transparent lobster seeds to foreign countries. When the ban on seed exports is enforced, there are still many illegal seed exports of lobster. Similarly, when transparent lobster seed exports are opened, the shipment of seeds through illegal channels continues.
Based on data from the Ministry of Maritime Affairs and Fisheries (KKP), as of May 15, only three official shipments of clear lobster seeds have been recorded overseas. However, authorities have foiled smuggling six times.
Instant gain
Yusnaini, a lobster expert from the Department of Cultivated Fisheries, Faculty of Fisheries and Marine Sciences, Halu Oleo University, Kendari, said that opening lobster seed exports will provide benefits and certainty in the marketing of seeds caught by fishermen. However, the benefits obtained are only short term.
Also read: Lobster Cultivation Still Faces Challenges
The export faucet of lobster seedlings is driving the capture of clear lobster seeds to become even more massive, using more intensive catching devices. There are even investors entering the market for wider capture of lobster seedlings.
"In the short term, fishermen benefit from the available market. However, if the catching of lobster seeds continues to increase, the sustainability of clear lobster seed stock will be threatened and Indonesia will find it increasingly difficult to catch up in cultivation," said Yusnaini in the National Webinar "Lobster Cultivation Abroad: What are the Benefits for Fishermen", which was held online by Halu Oleo University on Thursday (May 16th, 2024).
He added that the development of lobster cultivation within the country should be a priority. Instead of providing opportunities for Vietnamese investors to develop cultivation abroad, the government should encourage foreign investors to enter and develop lobster cultivation businesses in Indonesia. There is still much homework for lobster cultivation that needs to be addressed so that Indonesia can be sovereign in the field of lobster.
"Sending clear lobster seeds abroad is the same as arming or giving ammunition to our main competitors to cultivate lobsters. "If we continue to supply the seeds, Vietnam will win the competition," said Yusnaini.
Sending clear lobster seeds overseas is the same as arming or giving ammunition to our main competitors to cultivate lobsters.
Deputy of Studies and Advocacy at the Business Competition Supervisory Commission (KPPU), Taufik Ariyanto Arsad, has highlighted Regulation No. 7/2024 issued by the Ministry of Marine Affairs and Fisheries, which is considered insufficient in regulating the allocation, quota management for seed capture, and criteria for companies eligible for quotas. In addition, the regulation has also not regulated partnership cooperation between large-scale aquaculture investors and micro-scale businesses, putting micro-scale businesses at risk of competing with large-scale businesses.
Difficult to develop
The quota for harvesting lobster seeds, amounting to 419.21 million, or 90 percent of the estimated stock, has raised concerns among certain groups regarding the exploitation and sustainability of lobster resources.
The Vice Chairman of the Indonesian Aquaculture Society, Budhy Fantigo, stated that the quota covers all six types of lobster in Indonesia. However, the lobster seeds traded so far only rely on two types, namely sand lobsters and pearl lobsters. "The type of lobster seeds that can be traded is only a third of the total seed stock," said Budhy.
He added that the biggest market for lobster consumption is Hong Kong and China. Vietnam, which relies on 80-90 percent of lobster seed supply from Indonesia, dominates the lobster market due to its close geographical proximity to China. The government is deemed necessary to prepare suitable and efficient cultivation locations and ecosystems.
For example, the logistics cost of lobsters from Vietnam to China is only around Rp 5,000 per kg using truck transportation, while the logistics cost of lobsters from Indonesia to China requires air transportation. Lobster shipments are carried out through two airports, namely Soekarno-Hatta Airport in Cengkareng and Ngurah Rai Airport in Bali. However, lobster cultivation locations are generally outside of Java and Bali, namely in Lampung, North Sumatra, West Sumatra, Bengkulu, and West Nusa Tenggara.
"If lobster seed smuggling is completely closed, lobster cultivation in Indonesia can develop. On the other hand, if smuggling cannot be stopped, cultivation will be difficult to grow," said Budhy.
Indonesian Ombudsman member, Hery Susanto, assesses that the lobster cultivation roadmap for 2020-2024 has not yet shown results. He also suspects that the formulation of regulations by the Ministry of Marine Affairs and Fisheries related to lobster is maladministration due to the lack of public participation and consultation. His team will conduct a quick study this year regarding Ministerial Regulation No. 7/2024.
"The development of policies must involve all components of society, not just the government. When formulating, I was waiting for (public consultation) to happen, but what actually happened was the rules were issued," said Hery.
Also read: Spurs Domestic Lobster Cultivation
Minister of Marine Affairs and Fisheries, Sakti Wahyu Trenggono, stated that the roadmap for lobster cultivation is clear, which is to make the strategic commodity a "champion" in the next 10 to 30 years. He cited Norway, which took 50 years of research and development to grow its salmon cultivation.
"I have opened the roadmap for Indonesian lobster cultivation, namely the market (seed export), but it is not free. There is only one market, namely Vietnam. "We can't stop them because illegal (sending seeds) will definitely continue," said Trenggono, at the inauguration of project management office (PMO) 724 at the Office of the Ministry of Maritime Affairs and Fisheries, in Jakarta, Wednesday (15/5 /2024).
According to Trenggono, the official opening of lobster seed exports requires Vietnamese investors to cultivate lobsters in Indonesia by collaborating with local business actors. The hope is to establish an ecosystem of cultivation equipment and food support. Currently, five exporting companies have complained about the difficulty of supplying cages and feed, so they still allow imports.
In addition, efforts to strengthen cultivation within the country include creating a model or pilot project for lobster cultivation villages this year. The design of the cultivation village will involve the community. The state is ready to provide assistance for cultivation facilities, such as cages. The funding will come from the export of lobster seeds PNBP. "(Modeling) is currently being studied and is expected to be implemented in the near future," he said.
On the other hand, clear lobster seeds confiscated from smuggling practices are being studied so that they are not released but instead supplied to public service agencies. The agency will raise the seeds to cricket size (5 grams) before being supplied to breeders, thus increasing the success rate of cultivation.
Effendy Wong, an advisor from the Indonesian Association of Marine Fish Farmers (Hipilindo), regrets the government's decision to allow the export of transparent lobster seeds to Vietnam on the grounds that it is difficult to prevent seed smuggling. If the shipment of lobster seeds to Vietnam is completely stopped, investors from that country will turn around and develop lobster cultivation in Indonesia.
According to Effendy, without a breakthrough in the lobster cultivation roadmap, Indonesia will only be utilized as a lobster seed supplier to Vietnam. "The challenge for this nation is to find a solution so that lobster seeds are not only sent overseas but can be optimally utilized for the benefit of the Indonesian people,” he said.