The country`s imports were larger in value than exports in the first six months of the year despite surplus in June.
Based on data at the Central Bureau of Statistics (BPS), the country was favored with a surplus of US$1.74 billion in its international trade in June, 2018. However, cumulatively, the country still had a deficit of US$1.02 billion in the first six months of the year as against a surplus of US$7.66 billion in the same period last year.
Indonesia`s exports in the January-June period, 2018 reached US$88.02 billion , up 10.03 percent from US$80 billion in the same period last year.
Executive Director of the Maritime Study Center for Humanity Abdul Halim said plan to increase export of fishery products needs to consider the factor of inflation. The government of President Joko Widodo has been especially careful to keep inflation under control.
Abdul Halim said one of the factors to keep inflation under control is to ensure that the domestic requirement is fully fulfilled.
Therefore, the government should not think only of short term requirement by boosting exports and allowing imports when domestic supply falls short of requirement.
It is especially important when it concerns food products. The import cost would likely be higher when the rupiah value is shrinking against the U.S. dollar.
Abdul Halim said, according to BPS, fish commodities were still a contributor to inflation in June, 2018.
The government should be serious in developing fish processing industry and marketing of fishery products in the country, he said.
So far, instead of developing fish processing industry, the government has been interested more in exporting fishery products. It is in contrary to the mandate of the fishery law, he said.
He said in order to support development of fishery processing industry, the country needs to provide supporting infrastructure such as "cold storage", sufficient electricity supply and adequate transport facility.
In addition, regional administrations should coordinate with each other in fish supply by utilizing surplus recorded by other areas instead of importing to meet requirement, he said.
Abdul Halim said development of processing industry widely distributed in the country would eventually contributes to increasing exports of fishery products .
Therefore, in addition to exports, development of processing industry and marketing could contribute to increasing foreign exchange earning and strengthening rupiah.
The program could be stimulated by offering incentives for development of fish processing industry and expanding market in the country and abroad.
Meanwhile, chairman of the Association of Indonesian Marine Scholars Moh Abdi Suhufan said the Marine and Fishery Ministry should give guidance in exports of fishery products such as in certification which is needed in exports to Europe and the United States.
"Guidance by the government is very important," Moh Abdi Suhufan said.
Abdi Suhufan said the Marine and Fisheries Ministry should continue to provide guidance such as in tuna catching and processing to keep good quality especially tuna for exports.
The instrument is already available to comply with the regulation such as `Catch Certificate` which is prerequisite in entering the market of the European Union. The requirement is part of the `Health Certificate`.
The problem is how the business players would or whether they could fully meet the requirements.
Earlier, Director General of Fish Catch Zulficar Mochtar said that the interest is growing lately in fish catching industry in Indonesia .
However, there are still rampant violation of regulation. The the compliance with regulation and sense of responsibility is still low among the business players in fish catching industry in the country.
The impact is bad on the industry resulted in a big loss to the state such as markdown of tens of thousands of ships , illegal practice of using the license of other companies and falsification of license.
There are also falsification of report about fishery results, disobedience in tax, Zulfikar said.
Restrictions
Abdi also said the government should also seek to remove bottlenecks in exports such as the Europe and the United States.
"Steps taken to remove restriction on exports have to continue and the result should be communicated to the business players," he said.
In addition, the quality of fish should be maintained especially fish for exports to meet the standard conditions in international market.
President Joko Widodo (Jokowi) has asked regional administrations to facilitate export oriented investment and development of industry producing import substitution products.
"Deficits are still recorded in our trade balance and current account balance and the problem lies in investment," President Jokowi said here recently.
The Head of State asked heads of regional administrations not to make it difficult in discussing export oriented investment in development of industry producing import substitution goods.
Finance Minister Sri Mulyani said the government will seek to increase activities that could turn out foreign exchange such as promotion of exports and development of tourism sector.
Sri Mulyani said the policy is expected to forestall the impact of the global uncertainty mainly turbulence in trade amid escalation of trade war between world`s two largest economies, China and the United States.
The country has to be careful in maintaining enough foreign exchange reserve to finance imports and service the government debts.
Editing by A Saragih
Reporter: Muhammad Razi
Editor: Fardah Assegaf
Copyright © ANTARA 2018
