| Project Detail |
The project will help the Ministry of Marine Affairs and Fisheries (MMAF) to introduce sustainable shrimp aquaculture to increase the productivity, quality, profitability, and environmental sustainability of shrimp farming by smallholders. The project will improve smallholder farmers access to quality inputs, production, and post-harvest practices and traceability through infrastructure, capacity support, and value chain strengthening in selected locations (Across Bali, Banten, Central Java, East Java, Lampung, Nangro Aceh Darusalam, and South Sulawesi provinces). It is aligned with the following impact: contribution of the fisheries industries to the national economy increased. It will have the following outcome: productivity, profitability, and environment sustainability of shrimp aquaculture increased.
Project Name Infrastructure Improvement for Shrimp Aquaculture Project
Project Number 55020-001
Country / Economy Indonesia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4283-INO: Infrastructure Improvement for Shrimp Aquaculture Project
Ordinary capital resources US$ 93.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector
Agriculture, natural resources and rural development / Agriculture research and application - Agro-industry, marketing, and trade - Fishery - Irrigation
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will help the Ministry of Marine Affairs and Fisheries (MMAF) to introduce sustainable shrimp aquaculture to increase the productivity, quality, profitability, and environmental sustainability of shrimp farming by smallholders. The project will improve smallholder farmers access to quality inputs, production, and post-harvest practices and traceability through infrastructure, capacity support, and value chain strengthening in selected locations (Across Bali, Banten, Central Java, East Java, Lampung, Nangro Aceh Darusalam, and South Sulawesi provinces). It is aligned with the following impact: contribution of the fisheries industries to the national economy increased. It will have the following outcome: productivity, profitability, and environment sustainability of shrimp aquaculture increased. Specifically, it will (i) increase quality and sustainability of inputs for shrimp production, (ii) develop sustainable and climate adaptive aquaculture infrastructure and services, and (iii) strengthen shrimp aquaculture supply chain.
Project Rationale and Linkage to Country/Regional Strategy
Indonesia is among the top five shrimp producers in the world, with a global market share of 8.7%. Its shrimp product exports to the European Union, Japan, and the United States totaled $2.04 billion equivalent in 2020._Indonesia is a leading exporter of frozen seawater shrimp but lags its peers in exports of fresh, salted, or smoked shrimp. The main farmed shrimp species is the whiteleg shrimp (Litopenaeus vannamei), which accounts for 80% of production. The whiteleg shrimp is cultivated by large companies and about 50% of the smallholders._The remaining 50% of the smallholders cultivate the tiger shrimp (Penaeus monodon) extensively._While the potential for Indonesias shrimp aquaculture is high, the traditional mode of farming employed by smallholders constrains productivity, profitability, and environmental sustainability. Developed countries are increasingly monitoring the quality of shrimp imports for transparency and traceability, drug and chemical residues, and environmental damage._As awareness of food safety grows among consumers, Indonesian shrimp producers must improve traceability along the shrimp value chain and raise the standards of hygiene in shrimp processing. Only large shrimp producers, hatcheries, and feed suppliers currently comply with MMAFs framework for Indonesian Good Aquaculture Practices (INDOGAP). MMAF will need to expand the use of its sistem telusur dan logistik ikan nasional (national fish traceability and logistical system, STELINA) by farmers and other actors along the value chain if Indonesia is to maintain a strong position in international markets.
The proposed project will support four operational priorities of the ADB Strategy 2030._It is also aligned with ADBs Action Plan for Healthy Oceans and Sustainable Blue Economies, and its country partnership strategy 2020-2024 for Indonesia, (pathway 3: strengthening resilience). The Government of Indonesias National Medium-Term Development Plan 2020-2024 promotes aquaculture and proposes to increase (i) the number of superior aquaculture production centers to 50 in 2024 from 10 in 2020, and (ii) the export value of fisheries to $8.0 billion in 2024 from $6.2 billion in 2020. The MMAF National Shrimp Farm Development Program 2020-2024 aims to increase shrimp production by 250% to 1.29 million tons by 2024 (from 527,397 tons in 2019).
Impact
Contribution of the fisheries industry to the national economy increased (National Medium-Term Development Plan, 2020-2024) |
