Indonesia: Sustainable Aquaculture Development for Food Security and Poverty Reduction

Agriculture, natural resources and rural development - Fishery

The Project supports the Government's program to promote sustainable and community-managed freshwater, brackishwater and marine aquaculture development to reduce poverty and increase the food supply among poor fish-farming communities. It focuses on the development of small-scale and low-cost aquaculture production systems that are economically sound and environment friendly, and that can be easily replicated by fish farmers organizations and small- to medium-scale private entrepreneurs. The Project will provide technical and extension support to fish farmers in order to ensure successful project implementation. Such support includes innovative mechanisms to assist organized fish farmer groups with securing production inputs and marketing their final product. The Project builds the capacity of the Directorate General of Aquaculture (DGA) and the participating district governments to formulate policies and regulations for sustainable aquaculture development and environmental management, and to support the needs of the beneficiaries, their communities, and the country's aquaculture industry as a whole.

The Project is implemented in five districts in four provinces: namely: (i) Langkat in North Sumatera Province, (ii) Ogan Komering Ilir (OKI) in South Sumatera Province, (iii) Karawang and Sumedang in West Java Province, and (iv) Buton in Southeast Sulawesi Province.

Aquaculture has been playing an increasingly significant role in Indonesia's economy providing household food security, generating valuable foreign exchange and domestic revenues, boosting international trade in fish and aquatic products, and improving the living standards of poor rural communities in Indonesia. It has been accepted as a viable alternative livelihood for fisherfolks engaged in open sea fishing and can help reduce pressure on marine and coastal resources including the depleting fish stock, degrading fish habitats and declining marine biodiversity.

However, the subsector is confronted with numerous problems that need to be addressed urgently. These problems include (i) low growth and productivity resulting from poor fish-farming systems and lack of good quality fish and shrimp seed; (ii) environmental degradation and pollution resulting from poor fishfarm management and technology; (iii) lack and inaccessibility of credit for poor or small-scale fish farmers; (iv) high costs of imported production inputs; (v) lack of social preparation, inefficient extension services, and post-production facilities and marketing infrastructure; and (vi) user conflicts in open water areas among fish farmers and other users. All these problems have been acting as deterrents to aquaculture by small-scale fish farmers.

Component1: Aquaculture Production Enhancement

Communities organized and empowered; social infrastructure and facilities improved; fish production in freshwater, brackishwater and mariculture enhanced through rehabilitation and establishment of community-based aquaculture systems

Component 2: Aquaculture Support Services

Production techniques and quality of aquaculture products improved through strengthened extension services and improved post-harvest handling, processing and marketing

Component 3: Institutional Strengthening and Project Management

Capacity of national and district level institutions, including private sector institutions, in aquaculture development and management strengthened; and establishment and operation of project management office and units supported

At project closure on 31 December 2013, the following were achieved:

Component 1:

There were 14,585 communities organized and participated in community-managed aquaculture enterprises (104%). 3,277 ha of brachiswater ponds or tambak improved (80%) and 533 units mariculture cages established and managed (178%). The Project established 107 brackishwater aquaculture and 69 mariculture demonstration units (117%), 582 ha of seaweed culture facilities (116%), 76 demonstration units (76%), 31 hatcheries, and 166 units of water supply facilities (111%). 233 ha of fish ponds improved (518%) and 38km km access roads were improved as well (63%).

Component 2:

Extension workers provided production techniques and improved quality aquaculture products to 1,022 community groups including 139 women groups. 14,196 project beneficiaries received production input assistance.

Value of shrimps and fishes, except grouper and seaweeds, by 27%. Sales of cultured fish increased by 5.6%.

Componenet 3:

222 PMO and PIU staff trained on procurement, financial management and other topics (493%). 72 extension officers provided with training and transport equipment (103%). PMO and PIUs were established in early 2007. They were adequately staffed and equipped to meet project requirements. 29 guidelines prepared by PMC distributed to PMO and PIUs.