Despite official legislation, Indonesia is yet to institute processes to curb illegal, unreported and unregulated (IUU) fishing

Hadiwinatha, Martin

Aquatic Commons

january 2016
43
Illegal FIshIng
Indonesia
This article is by Martin Hadiwinatha 
(hadiwinata.ahmad@gmail.com)  
Head of Law Development and Fisherfolk 
Advocacy, Indonesia Tradisional  
Fisherfolk Union (Kesatuan Nelayan 
Tradisional Indonesia)
“We have far too long turned our back 
on the seas, the oceans, the straits and 
the bays. It’s time to restore everything so 
that Jalesveva Jayamahe, a slogan used 
by our ancestors, will echo again.” 
—Ir. Jokowi, the President 
of Indonesia, at his presidential 
inauguration
The public in Indonesia was surprised by the investigation of the Associated Press into the 
enslavement of hundreds of foreign 
nationals in Indonesia. In remote 
Benjina, in the Maluku Islands, PT 
Benjina Resources enslaved people 
who work up to 22 hours per day with 
no days off, locked up and forced 
to drink dirty water. The produce 
from PT Benjina Resources is sent to 
Thailand, from where it spreads out 
into international trade via seafood 
retailers in  the US, Asia and Europe. 
These illegal fish catches are sold to 
either restaurants or as pet food.
In May 2015, the Indonesian 
government repatriated 659 workers 
of PT Pusaka Benjina Resources, 
comprising 419 Thais, 202 Burmese 
and 38 Cambodians. Five years before 
the Benjina case became public, the 
Supreme Audit Agency on 19 March 
2009 published a report on licensing, 
non-tax revenues, processing and 
control of fishing for the period 2007–
2009. The report reveals violations in 
industrial relations, including the fact 
that there are 98 vessels that employ 
foreign nationals. 
In 2014 MV Hai Fa, a freighter 
vessel of 4,306 GT (gross tonnes) 
linked up with PT Avona Mina 
Lestari to transport fish to China. 
MV Hai Fa transported as much as 
800,658 kg of frozen shrimp, valued 
at 70 bn Indonesian rupiahs (INR). 
MV Hai Fa also carried 15,000 kg of 
oceanic whitetail sharks (Carcharhinus 
longimanus) and hammerhead sharks. 
Nonetheless, the captain of MV 
Hai Fa was prosecuted merely for 
violation of rules related to trade in 
prohibited fish species and charged 
with a fine of 200 mn INR and a 
six-month imprisonment. MV Hai Fa 
was a Panamanian-flagged vessel 
captained by foreign nationals, 
whose operation in the waters of 
Indonesia is a violation of law. MV Hai 
Fa also violated many other rules and 
regulations (see table below). 
Table 1: Violations by MV Hai Fa
Article Provision Sanction
Article 16 para (1),
Fisheries Act
Ban on selling harmful fish, and 
endangering fish resources and 
the environment.
Imprisonment of six years 
and maximum fine of  
INR 1,500,000,000 
Article 29 para (1), 
Fisheries Act
Only citizens of the Republic 
of Indonesia or other legal 
Indonesian entities can operate 
in the fisheries of Indonesia. 
None
Article 35A para (1), 
Fisheries Act
It is compulsory for the captain 
and crew of the vessel to be of 
Indonesian nationality.
None
Article 41 para (3), 
Fisheries Act
It is compulsory to land the fish 
catch in assigned or designated 
ports. 
None
Article 41 para (4),
Fisheries Act
The fish catches should be 
loaded and unloaded in the 
assigned or designated ports. 
None
Article 21 Para (2), 
Conservation of 
Natural Resources and 
Ecosystems Act
Fishing of oceanic whitetail 
sharks and hammerhead sharks 
is prohibited.
Imprisonment of five years 
and a fine of  
INR 100,000,000 
There are three modes of illegal, 
unreported and unregulated (IUU) 
fishing in Indonesia. The first is 
the illegal use of foreign nationals 
as crew. The second is manipulation 
of permits for vessels, including 
those related to tonnage. The third is 
violation of provisions for landing and 
processing of fishery products. 
No Turning Back
Despite official legislation, Indonesia is yet to institute processes  
to curb illegal, unreported and unregulated (IUU) fishing
44
SaMuDra report no. 72
Indonesia comprises 13,466 islands 
with the total area for fisheries, 
including the exclusive economic 
zone (EEZ) and the continental shelf, 
amounting to 6.32 mn sq. km. The 
land area is 1.91 mn sq. km. Fisheries 
resources are regulated under Article 
33, Para (3) of the constitution, which 
states: “The earth, water and natural 
resources contained therein are 
controlled by the state and used for the 
greatest prosperity of the people”. 
It is estimated that there are 5,400 
foreign fishing vessels operating 
illegally in the sea of Indonesia. Each 
year one to two mn tonnes of fish are 
stolen, landed and traded illegally. 
The foreign vessels that fish illegally 
come from the following six ASEAN 
countries, namely, Thailand, 
Philippines, Vietnam, Malaysia, 
Cambodia and Myanmar), and from 
the following non-ASEAN countries, 
namely, China, Korea, Taiwan and 
Panama. Most of the illegal fishing 
occurs in eighteen locations to the west 
and thirteen to the east. 
In 2011 the Minister of Marine 
Affairs and Fisheries identified 
Indonesia’s annual potential fish catch 
at 6.5 mn tonnes. However, considering 
the level of overfishing, this seems to 
be an underestimate. At present, there 
are 615,130 vessels with permits to 
fish in the waters below 12 nautical 
miles and 3,190 with permits to fish in 
the EEZ. 
In the past, Indonesia suffered 
from a large imbalance in overall 
socioeconomic development, including 
in fisheries. Of the total of 1,375 
fishing ports, 68 per cent were in 
western Indonesia, while 25 per cent 
were in the central region and only 
seven per cent in eastern Indonesia. 
However, under the new Indonesia 
fisheries act, fishing industry 
operations can be conducted in the 
Republic of Indonesia only by its 
citizens. Exceptions are allowed for 
foreign entities engaged in fishing 
in the EEZ, subject to provisions of 
Article 62.2 of the United Nations 
Convention on the Law of the Sea 
(UNCLOS), 1982. Indonesia-flagged 
vessels are allowed to go fishing in 
the sea waters of Indonesia, including 
in the EEZ, but foreign-flagged vessels 
can fish in the EEZ provided they have 
licenses. 
I n D o n e S I a
Figure 1. Distribution of fishing vessels: 2008-2013
Source: KNTI (2014)
To
ta
l N
o.
 o
f F
is
hi
ng
 V
es
se
ls
Vessels Fishing Beyond the Territorial Waters (EEZ) and  
Within 12 Nautical Miles (2008 - 2013)
january 2016
45
Indonesian regulations on foreign 
investment adopt the negative list 
system with licences or permission 
required for foreigners. Under the 
Presidential Regulation No. 39 of 2014, 
foreign investment in fisheries in the 
EEZ is permitted only for those who 
use fishing vessels of 100 GT or more. 
There are three principal permits 
needed to operate in Indonesia’s 
fisheries—the fishery business 
licence for fisheries and aquaculture, 
the fishing license and the fishery 
transport business licence. 
Foreign-flagged vessels caught 
for illegal fishing may be subject to 
severe penalties, including the 
sinking of the vessel. Indonesian-
flagged vessels are required to engage 
captains and crew of Indonesian 
nationality. Foreign-flagged vessels 
that fish in the EEZ should have a 
minimum of 70 per cent Indonesian 
citizens as crew. 
There are several other policies 
related to IUU fishing in Indonesia, 
ranging from the prohibition of 
transhipment at sea, a moratorium 
on the termination of licensing of 
vessels built abroad and a ban on 
trawling in the waters of Indonesia. 
Violations can attract administrative 
sanctions such as warnings, 
suspension and/or revocation of 
licences. 
According to a new regulation of 
the Minister of Maritime Affairs and 
Fisheries, those who land above 2,000 
tonnes are required to process the 
catch by building a fish processing 
unit. 
Monitoring, control and 
surveillance (MCS) activities are 
covered under the Fisheries Act of 
2014, by which the Maritime Security 
Agency has been replaced by the 
Maritime Security Coordinating 
Board, which is a multitasking 
agency that coordinates with thirteen 
other government agencies for 
supervision against IUU fishing. 
The fishing vessel registration 
system in Indonesia is divided 
sectorally between the Ministry of 
Transportation and the Ministry 
of Maritime Affairs and Fisheries. 
Vessel measurements are regulated 
by the Ministry of Transportation, 
Table 2: Distribution of Fishing Vessels and Fish Processing Units
Indonesia's EEZ 
area
No. of 
companies
No. of 
vessels 
Total 
gross 
tonnage
Total 
production 
(tonnes)
Existing 
fish 
processing 
units
Permitted 
fish 
processing 
units
Arafura EEZ 54 659 251,591 524,829 15 125
Sulawesi and 
Pacific Ocean EEZ
31 199 28,931 27,626 6 14
Indian Ocean EEZ 55 187 26,309 42,385 6 13
Indian Ocean EEZ 21 57 13,626 12,822 5 6
South China Sea 26 73 7981 15125 1 3
Total 187 1.175 328438 622787 33 161
Source: KNTI,2014
Map: Distribution of Fishing Ports
Source: KNTI, 2014
Table 3: Results of examinations conducted on vessels  
by the Ministry of Maritime Affairs and Fisheries
No.
Document details
Physical 
checks 
results
Name of vessel Owner
Fishery Permit  
No. SIPI/SIKPI
GT GT
1 Ulang Ulie XI PT. Arabikatama 
Khatulistiwa F.I.
17.09.0028.27.22800 24 60
2 Cilacap Maluku 
Jaya Enam
PT. Cilacap 
Samudera F.I.
17.08.0027.27.20169 78 153
3 Samudera Maluku 
Jaya Enam
PT. Cilacap 
Samudera F.I.
15.09.0028.16.22478 60 157
4 S&T Samudera 
Jaya 6
PT. S&T Mitra 
Mina Industri
26.09.0028.03.22648 398 442
Source: KNTI, 2014
I l l e g a l  F I S h I n g
46
SaMuDra report no. 72
while licensing of fishing vessels 
comes under the Ministry of 
Maritime Affairs and Fisheries. 
However, there are complaints that 
this division leads to manipulation 
of weight measurement of vessels to 
evade tax and levies. 
Manipulation of the gross weight 
of fishing vessels is becoming a major 
source of corruption in the fisheries 
sector, which is worsened by the 
division of authority between the 
central and local governments in 
issuing permits. Under Law No. 23 
of 2014 on Regional Government, 
regulation of vessels between 5 and 
30 GT falls under the authority of the 
provincial government. According 
to the findings of the Corruption 
Eradication Agency, which audited 
the tax liabilities of vessel owners, 
of the 1,836 fishery businesses that 
obtained licences, 632 do not yet 
have a tax identity number. 
According to data from Kesatuan 
Nelayan Traditional Indonesia 
(KNTI), in 2013 there were 615,130 
vessels that fish in waters below 12 
nautical miles. The 3,190 vessels that 
fish in the EEZ could easily deplete 
the fishery resources which ought to 
be accessed by the locals. The fishery 
stock resources in the territorial 
waters tends to be overfished and 
overexploited. Meanwhile the 3,190 
vessels that fish in the EEZ could 
easily deplete the fishery resources 
which ought to be accessed by the 
locals. This problem can be addressed 
by facilitating the fisherfolks to 
access the resources so the EEZ will 
secured by locals fishers.
In our view in Indonesia, MCS 
activities will work well only with 
the involvement of fisherfolk, as per 
the provisions in the National 
Fisheries Act (Article 67), needs 
to be implemented properly and 
strengthened.                                            
faolex.fao.org/docs/pdf/ 
ins51065.pdf 
Law No. 31 of 2004 on fisheries
faolex.fao.org/docs/pdf/ 
ins97600.pdf 
Law No. 45 of 2009 and 
Amendment to Law No. 31 of 
2004 on fisheries
bigstory.ap.org/article/
b9e0fc7155014ba78e07f1a022d90389/
ap-investigation-are-slaves-catching-fish-
you-buy 
Are slaves catching the fish  
you buy?
For more
I n D o n e S I a
home workers and their families in Indonesia. MCS activities will work well only with the 
involvement of fisherfolk
Ferry latIeF
january 2016
47
WTO Challenge
Document
This is excerpted from Roberto Azevêdo’s 
speech at the University of West Indies in 
Jamaica, on 18 January 2016, available at:  
www.wto.org/english/news_e/spra_e/
spra109_e.htm
In his speech at the University of the West Indies in Jamaica on 18 January Azevêdo said WTO 
members should build on the historic 
success of the recent Nairobi to tackle 
the urgent challenges facing the WTO 
in 2016, including trade negotiations. 
This is what he said…
Let me explain in a bit more detail 
what was delivered in Nairobi. The 
Nairobi Package contained a number 
of important decisions—including 
a decision on export competition. 
This is truly historic. It is the most 
important reform in international 
trade rules on agriculture since the 
creation of the WTO. The elimination 
of agricultural export subsidies is 
particularly significant in improving 
the global trading environment… For 
many years global trade negotiations 
yielded few results. But, as you can 
see, we are changing all that. The 
WTO has delivered a huge amount 
over the last few years. We are getting 
into the habits of success. The WTO’s 
162 members monitor each other’s 
practices and regulations against those 
rules in order to improve transparency 
and avoid protectionism. In Nairobi 
ministers formally acknowledged their 
differences about our future work. 
This was a very significant moment. 
But, despite those differences, there 
is some convergence. For example, 
there is a clear openness to advance 
negotiations on the remaining Doha 
issues, and to keep development at the 
centre of our work. These issues include 
domestic support and market access 
for agricultural goods, market access 
for industrial goods, services, fisheries 
subsidies, and a number of other 
areas. So clearly these are important 
issues, which members want to address 
through negotiations. The question, 
given the differences I have mentioned, 
is how?
At the same time, some members 
want to explore the possibility of 
discussing and eventually negotiating 
on other issues. Certainly, all members 
believe that the WTO can do more — 
and that we can do it at a faster pace. 
So the challenge before us is very 
significant. It is not limited only to 
the question of what happens to the 
Doha issues, it is about the negotiating 
function of the WTO. It is about what 
members want for the future of the 
Organization as a standard and rule-
setting body. It has wide systemic 
implications for trade multilateralism, 
and for multilateralism at large. And 
the challenge is urgent.
The world won’t wait for the WTO. 
Other trade deals will keep advancing. 
The WTO cannot stop delivering. The 
wider the gap between regional and 
multilateral disciplines, the worse 
the trade environment becomes for 
everyone, particularly businesses, small 
countries and all those not involved 
in major regional negotiations. But 
the outlook is not bleak. I said at the 
outset that 2016 was full of promise. 
I truly believe that—because, while 
we face real challenges, there are 
also real opportunities before us. The 
conversation that is already getting 
underway in Geneva will determine 
the future direction of global trade 
negotiations—and the future direction 
of the WTO. It is an opportunity to find 
solutions that have long eluded us.
It is an opportunity to ensure 
that trade delivers more—and that it 
supports growth and development for 
all.
So I trust members will rise to this 
challenge — and seize this opportunity. 
I have no doubt that Jamaica will 
play an active and central role in that 
debate.
Thank you.                                            
Built on Historic Success
WTO members should build on the recent nairobi meeting 
to tackle the urgent challenges facing the WTO in 2016


No turning back: Indonesia, illegal fishing

http://aquaticcommons.org/20417/1/Article%2011%20No%20Turning%20Back.pdf

No turning back: Indonesia, illegal fishing

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