Indonesia: Infrastructure Improvement for Shrimp Aquaculture Project

Sovereign (Public) Project | 55020-001

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 Details

  • Project Officer
    Quincieu, Eric
    Southeast Asia Department
    Request for information
  • Country
    Indonesia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Infrastructure Improvement for Shrimp Aquaculture Project
Project Number 55020-001
Country Indonesia
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Infrastructure Improvement for Shrimp Aquaculture Project
Ordinary capital resources US$ 93.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
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
Outputs

Quality and sustainability of inputs production increased

Sustainable aquaculture infrastructure and services developed

Shrimp aquaculture value chain strengthened

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
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 Quincieu, Eric
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Marine Affairs & Fisheries
Indonesia
Timetable
Concept Clearance 27 May 2021
Fact Finding 15 Nov 2021 to 30 Nov 2021
MRM 31 Jan 2022
Approval -
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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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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Related Publications

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Tenders

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Procurement Plan

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