As the largest archipelagic state and maritime country in the world covering 5,8 million square kilometers of sea territory (which covers 70% of its total territory) and 17,480 islands spread across the country, Indonesia has a major opportunity to utilize its marine resources and to further develop its fisheries business.
There are several types of fisheries businesses that are currently regulated in Indonesia, namely (a) capture fisheries business, (b) fish processing business, (c) aquaculture business, (d) import and export, and (e) prohibitions on fisheries business.
Capture Fisheries Business
Based on Ministry of Marine Affairs and Fisheries Regulation Number 58 of 2020 on Capture Fisheries Business (“MoMAF Regulation No. 58/2020”), capture fisheries business are divided into three sub-types of business:
obtained, operators can apply for a Fish Capture Permit (Surat Izin Penangkapan Ikan) (“SIPI”) and/or Fish Transport Permit (Surat Izin Kapal Penangkap Ikan) (“SIKPI”) to the Direktorat Perikanan Tangkap.
In addition, please be informed that for the business of capturing lobster, crab, and rajungan, other special requirements are also set out by the Ministry of Marine Affairs and Fisheries Regulation No. 12 of 2020 on Lobster and Crab Management.
Fish Processing Business
Based on the Ministry of Marine Affairs and Fisheries Regulation Number 67 of 2018 on Fish Processing Business (“MoMAF Regulation No. 67/2018”), Fish Processing Business includes any activity that is required, to process raw fish material into products that can be consumed, for example salted or dried fish, smoked/grilled fish, fermented fish, fish oil production, canned fish, etc.
Further, to carry out this type of business, please be informed that upon obtaining the related Business Identification Number/Nomor Induk Berusaha (“NIB”), the business actor must file an application for a Fish Processing License (Surat Izin Usaha Perikanan Bidang Pengolahan Ikan) (“SIUP Pengolahan Ikan”) through an Online Submission Request (“OSS”).
Government Regulation No. 28 of 2017 on Aquaculture (“GR No.28/2017”) regulates various types of business relating to aquaculture; for instance on broodfish, and/or fish seed, importing and exporting new types of fish for aquaculture, fish medicine manufacturers and distributors, and genetically modified aquaculture. The conduct of any of the businesses mentioned above requires business actors to apply for licenses through the OSS.
Moreover, regarding the aquaculture business on lobster seed and crab capture, the government further regulates with additional requirements that must be fulfilled by the business actors, such as obtaining approval from the Directorate General of Aquaculture and to meet the quota set by the Nasional Commission on Fish Resource Assessment (Komisi Nasinonal Pengkajian Sumber Daya Ikan) (“Komnas KAJISKAN”) for lobster seed and crab capture.
Fish Import and Export Business
The Ministry of Trade Regulation No. 66 of 2018 on Fish Product Import (“MoT Regulation No. 66/2018”), states that fish product imports must provide raw material and/or industrial material assistance, and can only be carried out by a fish processing company that has obtained Import Approval from the Minister of Trade through the OSS, and to the Directorate General of Foreign Trade. The business actor must also obtain an NIB which also serves as its Importer Identification Number (Angka Pengenal Importir Produsen) (“API-P”)/ (Angka Pegenal Importir Umum) (“API-U”).
Prohibitions in Fisheries Business
To ensure the sustainability of fishery businesses in Indonesia, there are several regulations on prohibitions in the fisheries sector. For instance, the Ministry of Marine Affairs and Fisheries strictly prohibits anyone to export Oceanic Whitetip Sharks (Ikan Hiu Koboi) and Hammerhead Sharks (Ikan Hiu Martil), Arowana Fish and Botia Fish.
Further, the Ministry of Marine Affairs and Fisheries Regulation Number 19 of 2020 on Prohibition to Conduct Business on Hazardous and Toxic Fish (“MoMAF Regulation No. 19/2020”) also provides an extensive list of prohibitions when the fishery business related to certain types of fishes.
Lastly, failure to comply with the regulations mentioned above will result in criminal sanctions of up to 6 years of imprisonment and up to a 1,5 billion rupiah fine.
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