Indonesia : Infrastructure Improvement for Shrimp Aquaculture Project
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 Details
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Project Officer
Lawira, Helena
Sectors Group
Request for information -
Country/Economy
Indonesia -
Sector
- Agriculture, natural resources and rural development
| Project Name | Infrastructure Improvement for Shrimp Aquaculture Project | ||||
| Project Number | 55020-001 | ||||
| Country / Economy | Indonesia |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP5: Promoting rural development and food security |
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| Sector / Subsector | Agriculture, natural resources and rural development / Agriculture research and application - Agro-industry, marketing, and trade - Fishery - Irrigation |
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| Gender | 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 Indonesia's 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 MMAF's 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 ADB's 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 Indonesia's 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). |
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| Impact | Contribution of the fisheries industry to the national economy increased (National Medium-Term Development Plan, 2020-2024) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Productivity, profitability, and environmental sustainability of shrimp aquaculture increased |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Quality and sustainability of inputs for shrimp production increased Sustainable and climate adaptive aquaculture infrastructure and services developed Shrimp aquaculture supply chain strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| 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. |
| Business Opportunities | |
|---|---|
| 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 | Lawira, Helena |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR) |
| Executing Agencies |
Ministry of Marine Affairs & Fisheries |
| Timetable | |
|---|---|
| Concept Clearance | 27 May 2021 |
| Fact Finding | 10 May 2022 to 23 Jun 2022 |
| MRM | 19 Aug 2022 |
| Approval | 14 Dec 2022 |
| Last Review Mission | - |
| Last PDS Update | 14 Dec 2022 |
Loan 4283-INO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 Dec 2022 | 19 Dec 2022 | 23 Jan 2023 | 30 Jun 2028 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 104.12 | Cumulative Contract Awards | |||
| ADB | 93.00 | 07 Dec 2023 | 8.27 | 0.00 | 9% |
| Counterpart | 11.12 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 07 Dec 2023 | 1.79 | 0.00 | 2% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Unsatisfactory | - | Satisfactory | - | Unsatisfactory |
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 |
|---|---|---|
| Loan Agreement (Ordinary Operations) for Loan 4283-INO: Infrastructure Improvement for Shrimp Aquaculture Project | Loan Agreement (Ordinary Resources) | Dec 2022 |
| Infrastructure Improvement for Shrimp Aquaculture Project: Gender Equality and Social Inclusion Action Plan | Gender Action Plans | Nov 2022 |
| Infrastructure Improvement for Shrimp Aquaculture Project: Project Administration Manual | Project/Program Administration Manual | Nov 2022 |
| Infrastructure Improvement for Shrimp Aquaculture Project: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2022 |
| Infrastructure Improvement for Shrimp Aquaculture Project: Procurement Plan | Procurement Plans | Oct 2022 |
| 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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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ADB Approves $93 Million Loan for Indonesia Shrimp Farming Sector
ADB has approved a $93 million loan to enhance shrimp farming by smallholder farmers in seven provinces in Indonesia.
Tenders
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Infrastructure Improvement for Shrimp Aquaculture Project: Procurement Plan | Procurement Plans | Oct 2022 |