Indonesia's New Agriculture Policy Attracts Chinese Investment

Consumer Staples Author: EqualOcean News, ChenZhiheng Jun 20, 2024 03:09 PM (GMT+8)
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Indonesia's newly unveiled lobster management policy has piqued the interest of foreign investors, particularly from China, in lobster farming within Indonesian waters.

Following the decision of five Vietnamese companies to invest in Bali, Chinese investors are now showing interest in lobster farming in the Riau Islands region. These investors hail from a Chinese state-owned enterprise (BUMN) that previously engaged in lobster farming in Vietnam. Indonesia has successfully attracted their investment interest, and they are currently conducting surveys in the Riau Islands area.

The investment in lobster farming is expected to boost Indonesia's non-tax state revenue (PNBP). The Maritime and Fisheries Minister anticipates that overseas lobster seed (BBL) export transactions will contribute at least IDR 900 billion annually to the national treasury. According to Regulation No. 7 of 2024 on lobster and crab management, foreign companies are permitted to bring Indonesian BBL abroad for farming. The government's goal is to export approximately 30 million seeds per month, with an annual target of 300 million seeds. By applying a PNBP of IDR 3,000 per seed, the potential annual revenue is projected to reach IDR 900 billion.

To ensure the effective implementation of the new lobster management policy, the Ministry of Maritime Affairs and Fisheries (KKP) has established the Operational Management Center (PMO) 724. PMO 724 is tasked with overseeing the comprehensive enforcement of lobster regulations, including the capture of BBL in the wild, the development of lobster farming, investment, and the supervision of BBL usage.

The minister has suggested that the government increase the ministry's budget to approximately IDR 10 trillion by 2025 to ensure adequate funding for stringent regulation from both maritime and aerial perspectives. This initiative is expected to further enhance Indonesia's attractiveness to lobster farming investments.