Indonesia: Infrastructure Improvement for Shrimp Aquaculture Project
The project will help the Ministry of Marine Affairs and Fisheries (MMAF) in introducing environmentally sustainable shrimp aquaculture and improving transparency, traceability and reporting processes towards increased productivity, quality and profitability of smallholder's shrimp farming. The project will deliver an integrated investment addressing upstream, production, and downstream processes through infrastructure, support to improve farming practices and post-harvest systems, and value chain strengthening. It is aligned with the following impact: contribution of the fisheries sector to the national economy and value added of aquaculture 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 production, (ii) develop sustainable aquaculture infrastructure and services, and (iii) strengthen shrimp aquaculture value chain.
Southeast Asia Department
Request for information
- Agriculture, natural resources and rural development
|Project Name||Infrastructure Improvement for Shrimp Aquaculture Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Agriculture, natural resources and rural development / Agricultural drainage - Agricultural production - Agro-industry, marketing, and trade - Forestry - Irrigation - Rural market infrastructure
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The project will help the Ministry of Marine Affairs and Fisheries (MMAF) in introducing environmentally sustainable shrimp aquaculture and improving transparency, traceability and reporting processes towards increased productivity, quality and profitability of smallholder's shrimp farming. The project will deliver an integrated investment addressing upstream, production, and downstream processes through infrastructure, support to improve farming practices and post-harvest systems, and value chain strengthening. It is aligned with the following impact: contribution of the fisheries sector to the national economy and value added of aquaculture 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 production, (ii) develop sustainable aquaculture infrastructure and services, and (iii) strengthen shrimp aquaculture value chain.|
|Project Rationale and Linkage to Country/Regional Strategy||
Indonesia is among the top five shrimp producers in the world, together with India, People's Republic of China, Thailand, and Vietnam, and had a global market share of 7.1% in 2019. Global shrimp production is expected to grow by more than 5.2% annually. Indonesia is a top exporter of frozen seawater shrimps, but lags behind its peers in exports of freshwater shrimps, and fresh, salted, or smoked shrimps. The main farmed shrimp species is the whiteleg shrimp (Litopenaeus vannamei) accounting for 80% of production, which is produced by large companies and around half of the smallholders. The other half of the smallholders cultivate the tiger shrimp (Penaeus monodon) in the conventional way. The developed countries are increasingly monitoring the quality of shrimp imports for drug and chemical residues, environmental damage, and lack of transparency and traceability. While the shrimp aquaculture potential is high, several barriers constrain its growth and sustainability. Smallholder farming profitability is constrained by the lack of economy of scale, limited access to finance, unsustainable farming practices, and low bargaining power with aggregators. The low level of certification of farmers, aggregators, and processors also limit the ability to properly trace products, further limiting international buyers' confidence. As the demand for sustainability grows, there is a need to shift toward responsible and transparent production and sourcing.
The proposed project will support five operational priorities of the ADB Strategy 2030. It is also aligned with ADB's Action Plan for Healthy Oceans and Sustainable Blue Economies, the country partnership strategy for Indonesia, 2020-2024 (pathway 3: strengthening resilience), and is included in the country operations business plan for Indonesia, 2021-2023. The project is strategically aligned with the government's 2020-2024 National Medium-Term Development Plan which promotes aquaculture as a priority sector: (i) developing superior aquaculture production centres from ten in 2020 to 50 in 2024; (ii) increasing export value of fisheries from $6.2 billion in 2020 to $8.0 billion in 2024; and (iii) developing regions to reduce inequality.
|Impact||Contribution of the fisheries sector to the national economy and value added of aquaculture increased (Rencana Pembangunan Jangka Menengah Nasional, 2020 2024)|
|Outcome||Productivity, profitability, and environmental sustainability of shrimp aquaculture increased|
Quality and sustainability of inputs production increased
Sustainable aquaculture infrastructure and services developed
Shrimp aquaculture value chain strengthened
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Insights and inputs of project stakeholders and beneficiaries will be considered in project design through meaningful dialogues and appropriate communication means.|
|During Project Implementation||The project implementation will require consultation and participation of all stakeholders. Their participation, inputs, and involvement will be included in the project participation and communication plan and in other safeguard documents, as required.|
|Consulting Services||ADB is financing consulting services for the project preparation and due diligence through the transaction technical assistance on Supporting Water Security Investments Facility (Subproject 4). Consultants with highly specialized expertise and extensive experience in aquaculture will be engaged.|
|Responsible ADB Officer||Quincieu, Eric|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, SERD|
Ministry of Marine Affairs & Fisheries
|Concept Clearance||27 May 2021|
|Fact Finding||15 Nov 2021 to 30 Nov 2021|
|MRM||31 Jan 2022|
|Last Review Mission||-|
|Last PDS Update||04 Jun 2021|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Infrastructure Improvement for Shrimp Aquaculture Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||May 2021|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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