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Weaving Hope Amidst Shrimp Dynamics

 

Aquabinar The Series 26 “Indonesian Shrimp: Boosting Production, Safe for Consumption,” held by T-Com in collaboration with PT Suri Tani Pemuka (STP) via Zoom, featured speakers Budhi Wibowo, Chair of the Indonesian Shrimp Forum; Prof. Andi Tamsil, Chair of the Shrimp Club Indonesia (SCI), and Prof. Etty Riani, Professor at the Bogor Agricultural Institute. Budhi Wibowo, who was the first to speak, began his presentation by stating that 63% of Indonesian shrimp exports to the United States, only 4% to Europe, and only 4% to other destinations.

“Going forward, we must boost exports to other countries. Actually, our shrimp exports have been steadily increasing since 2015. In 2021, we were able to export 250,000 tons. But then there was a continuous decline, for various reasons. Among them were the spread of disease throughout Indonesia. Furthermore, Indonesia’s global competitiveness is declining. Why? The reason is the survival rate (SR), based on data I obtained from Jala from 2020 to 2022. Our SR continues to decline. As a result, the FCR (Food and Agriculture Product) rises. If the FCR rises, the COGS (Cost of Goods Sold) rises. This is where the problem arises because competitiveness declines, and the COGS (Cost of Goods Sold) is very high,” said Budhi, who is also the founder of Purindo Internasional.

Indonesia, especially from the government, is considered to be non-compliant with EU regulations related to AMR (antimicrobial resistance) and the National Residue Monitoring Program (NRMP). Indonesia is still not on this list, but it is deeply concerning and worrisome that exports to the EU will be prohibited until September 2026. “Then there’s the reciprocal tariff. Currently, our tariff is 19% plus a 3.9% anti-dumping fee. So, we pay 22.29%. In fact, the profit margin in the shrimp export industry is less than 5%. Consequently, this tariff will definitely impact the aquaculture sector. This tariff also depends on the tariffs imposed by the US on other countries. But essentially, this tariff will cause consumption in the US to decline, which could also lead to a drop in international shrimp prices,” explained the Industrial Engineering alumnus of the Bogor Agricultural Institute (IPB).

Next, efforts must continue to reduce shrimp production costs to compete in the international market. “One of our efforts is to introduce NP (nursery nursery). Based on various examples we’ve created, it’s been proven that the SR (Sustainable Productivity) of shrimp farming has increased sharply, ultimately lowering the HPP,” Budhi explained.

Regarding tariffs, don’t worry too much, as other countries are also affected. Vietnam is affected by around 48%, although not all exporters. India is affected by 33% plus 25%, and Indonesia by 19%. “What does this mean? In terms of tariffs, Indonesia is actually still behind some countries, but it’s also ahead of others. This means there’s still an opportunity for exports to the US, despite the tariff of around 23%,” Budhi explained.

 

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