Recommendations

• 1. On time tackling of challenges – On the viewpoint that Indonesia was

going through major challenges and disputes many things remain unsettled.
Main challenges were about the quality standards, getting rid of antibiotic
contamination which is being imposed by the importers and due to which
Indonesian government lacks to comply with in accordance to low
productivity and high cost of production of domestic shrimps.

• Promotion of conducive regulations – The government has issued various

regulations for banning the use of cloramphenicol. Proper monitoring was
done in all major shrimp producing regions and showing with the fact only
8.6% out of a total sample of 10, 115 from seven provinces was found to
contain cloramphenicol.

• Best quality and tech assistance from developed nations – The government
has now formed strict rules and regulations on the issuance of import quality
and health certificates in order to avoid the possibility of shrimp
transshipment to the United States via Singapore. In addition to imposing a
temporary import ban, Indonesia has also prepared an instrument for the
management of the importation of shrimps.

• Maintenance of quality standards in order to sustain in the international

markets as majority of trading partners were developed nations as in order to
be inline with the international safety and regulation, Indonesia needs every
form of assistance including technology transfers, equipment, expertise and
training with more joint ventures from major export destinations to be
formed in the near future. As soon as these are developed the country
exporters will be able to meet the quality standards by the developed
nations.

SLIDE CHANGE

• Proper implementation of importation of shrimps by the Indonesian

Governments -In addition to protect domestic shrimp growers, the import
ban was also aimed at responding to the US government’s concern over the
possibility of transshipment through Indonesia.
 • In case of Indonesian government they should Investment in Research and
Development sector for promoting productivity enhancing technologies
Among others things are improving relevant public infrastructures,
promoting consistent regulations and laws and their enforcement, and
political stability.

Current Situation

Figure 1 theory

Indonesia managed to increase its exports to the US by about 10%, i.e. an increase
of about 10,000 MT. However, its exports to Japan have been mostly flat while
Indonesia saw its exports to China shrink to around 2,600 MT. The market share of
the US in Indonesia’s total exports increased from just below 60% in 2020 to just
over 65% in 2021.

Figure 2 theory

The other top 10 players jointly add 20% to that, and the top 10 altogether
represent 80% of total exports to the US. Keeping in mind that the US might
represent over 80% of Indonesia’s total export market for L. vannamei, these 10
companies are simply Indonesia’s largest L. vannamei processors and exporters.

So in order to derive at the conclusion I would rather say that Indonesia so far
remains a relatively small L. vannamei exporter compared to other countries like
Ecuador, India, and Vietnam. However, its processing industry is relatively
consolidated with large players such as BMS and BMI dominating exports.
Interestingly, Indonesia’s dependence on the US market has not translated into
Indonesian companies having major import divisions in the US. Instead, the US’s
large well-known importers such as Aqua Star, Chicken of the Sea, and Great
American Seafood dominate US imports from Indonesia so it would be interesting
to know how Indonesia’s shrimp processing and exports industry will further
develop and possibly witness new processing facilities popping up close to the
locations where new shrimp farming clusters are established.