Indonesia's Maritime Underperformance
Jakarta - Indonesia’s planned future as a maritime powerhouse is looking more and more stalled. According to Jamaluddin Jompa, dean of Makassar-based Hasanudin University’s School of Fisheries and Maritime, Indonesia faces significant challenges if it wishes to continue with President-elect Joko’s plans for Indonesia to become the world’s maritime axis. Indonesia, according to Jompa, lacks the necessary human capital to compete with fellow maritime Southeast Asian countries. The human capital deficiency has caused Indonesia to fall behind in technological expertise as well, due to the demand for adept workers to man said technology.
Indonesia’s problem is best exemplified by the domestic seaweed industry. According to the World Bank, the farming and cultivation of seaweed have grown into a major source of income for “tens of thousands of Indonesian farmers” in North Sulawesi. However, though Indonesia is one of the major sources for seaweed worldwide, the nation lacks the capability to refine the product. The result is a major missed opportunity for the domestic economy, and for Joko’s plans to revolutionize Indonesia’s maritime economy.
The Philippines makes a striking contrast to Indonesia. The Philippines has managed to match a growing maritime industry to technological expertise, allowing the country to rapidly grow in diverse industries such as fishing. While Indonesia faces difficulties with modernizing its fishing industry, the Philippines has harnessed its human capital to create a vibrant sector of its economy. The Philippines serves as a model for Indonesia to emulate, and exceed.
According to the Central Statistics Agency, Indonesia’s maritime and fisheries sectors’ productions increased by 7 percent year-on-year in the second quarter of 2013, compared to a national growth rate of 5.8 percent. By last year’s end, according to data from the Ministry of Marine Affairs and Fisheries, fish exports reached $4.9 billion. This all occurs, however, without equal investment from government sources. The government allocates a paltry .08 percent to the fishing industry, an amount that is completely detached from the importance the industry has for Indonesia, and its future.
Joko’s plan is not without potential, however. In a country of 250 million people, the domestic demand alone carries strong economic heft. In addition, Indonesia’s geographical distribution as an archipelago nation lends huge potential for the country’s maritime industry. This geographical location allows Indonesia to enjoy a fishery potential of up to 60 million metric tons yearly, which would make the country a world leader.
However, with the majority of Indonesia’s 7.87 million coastal citizens, including many fishermen, living in or near the poverty line, it seems as though the country’s human capital infrastructure is a far off dream. But with land accounting for only 1/3 of Indonesia’s territory, sooner or later the country must focus on its maritime industries.