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INDONESIA’S P&L TUNA INDUSTRY: EFFORTS FOR SURVIVAL

By Janti Djuari, Ilham Alhaq and Sudari Pawiro
Despite huge challenges faced by the pole and line tuna industry in Indonesia, the government, national and
international organisations, donors and NGOs are working together with fishermen, processors and exporters to
increase fishing productivity and to fulfill the criteria for eco-label certification. The collective (and achievable) goal
is to see more high-value P&L Indonesian tuna sold at premium prices in developed markets.

Paul Hilton &IPNLF

P&L tuna fishing in Indonesia

Introduction The irony – a shrinking industry amidst

After being appointed as Indonesia’s Minister of Marine
Affairs and Fisheries in 2014, Susi Pudjiastuti declared three
pillars as being policies in the management and utilisation of
marine and fisheries resources: Sovereignty, Sustainability
and Prosperity. Pole and Line (P&L) fisheries, where fish are
caught one by one, fits squarely in the three pillars.
Pole & line fishing operations in Indonesia have been in
existence for a long time. Boat owners and crews of P & L
fishing vessels are locals, hence traditionally the fisheries
has a high degree of sovereignty in the utilisation of the
country’s tuna resources. In addition, P&L fishing vessels are
labour intensive and the crews are mainly recruited from
nearby coastal communities, contributing significantly to the
livelihood and welfare of people around the fishing grounds.
For example, a medium size P&L vessel (30 GRT) can absorb
about 20 workers/crews.
growing demand
Demand for P&L caught tuna, along with other eco-label
certified seafood products, has been growing in developed
markets, particularly in Europe where many major retailers
have committed to sell only P&L caught and eco-label
certified tuna products. Martin Purves, the Managing Director
of the International Pole &Line Foundation (IPNLF), at his
presentation during the Tuna Round Table jointly organised
by UNIDO SMART-Fish Programme and AP2HI (the Pole & Line
and Handline Fisheries Association of Indonesia) in Jakarta in
February 2017, predicted that the demand for P&L caught
tuna will reach 145 000 tonnes this year, from 60 000 tonnes
in 2014.
Unfortunately, growing demand and strong support,
particularly from NGOs, do not translate into flourishing
industry sectors at upstream level in P&L tuna capture
fisheries. In fact, P&L tuna fisheries is generally a shrinking

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28 Marketing

P&L tuna fishing areas in Indonesia (circled in red)

business in many parts of the world, including in Indonesia

(currently Japan is the largest P&L tuna producer while
Indonesia and Maldives are ranked second and third). IPNLF’s
Technical Report No. 6 estimated that the global P&L tuna
catch in 2013 was 360 810 tonnes, with the Indonesian
contribution being around 90 000 tonnes. Official figures
from the Ministry of Marine Affairs and Fisheries (MMAF)
reported a higher figure in that year, while also noting that
the trend has been declining for the past five years with the
average P&L catch being around 139 500 tons annually (Table
1 and Figure 1).

Various more recent sources have estimated that the global

P&L tuna caught was around 350 000-400 000 tonnes in 2015,
a decline from around 600 000 tonnes during the 80s/90s.
Based on a report submitted by its members, AP2HI noted
that in the past five years, P&L catches in Indonesia have been
on the decline; in 2015-2016, the drop was as much as 50% in
major fishing areas in Bitung, Sorong and Ambon.
The P&L vessels catch mainly schools of skipjack and small
tunas which are channeled to local canneries, katsuobushi
processors, exported as frozen products, or used for local
consumption (fresh or smoked). P&L caught tuna is also
canned by local businesses for other companies and retailers’
brands.

Table 1: Catches of tuna and tuna-like species in tonnes,

2011 - 2015
 
Year % of P&L
Total catches Catches by P&L
2011 613 575 150 356 25%
2012 704 803 139 790 20%
SMART-Fish Indonesia

2013 786 449 130 953 17%

2014 810 555 143 779 18%
2015 670 512 132 569 20%
Average 717 179 139 489 20%
Source: Ministry of Marine Affairs and Fisheries, 2016 (compiled) P&L caught tuna is processed by local canneries for their buyers’ brands

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Presently, there are
only 102 pole & line
fishing vessels operated
by AP2HI members in
Indonesia, mainly in
the eastern parts of the
country such as Flores,
Sulawesi, Ambon and
also Sorong. There are
approximately 836 P&L
fishermen.
SMART-Fish

The main factor for the

declining number of P&L
vessels is mainly due to
P&L fisherman scooping the live bait
increasing fishing costs,
and competition from
other vessels using more effective fishing gears that catch

the same fish in the same fishing area. There have been
many reports of conflicts between P&L fishermen and purse
seiners in different areas of Indonesia. Notwithstanding the
fact that some P&L vessels are also catching tuna from FADs,
the setting of unregulated FADs in eastern Indonesia has also
affected the P&L fisheries sector.
Pole and line fishing is well known to involve high operating
costs due to its dependence on live wild fish, usually small
pelagics, as bait. The bait is purchased from fishermen
aboard a bagan, a special boat or platform which uses lift nets
and lights to catch the fish. The bait price varies depending
on the season/areas but generally it is becoming expensive
due to lower availability, i.e. declining small pelagic stocks in
some areas and the increasing demand for fish for human
consumption in Indonesia. One big container of live bait (with
water) costs IDR 350 000 – 1 000 000 and each P&L boat
needs up to five such batches of live bait. Mortality of the live
bait is also high, adding to the cost of the fishing.
Another extra cost is the enforcement of new government
levies (taxes) called PHP for fisheries products. Instead of
receiving incentives for being the most sustainable fisheries,
P&L tuna vessels are taxed more compared with other fishing
gears. For example, the PHP for pole and line fisheries has
increased from the previous levy of IDR 339 800 (US$25.5)
to the current IDR 953 100 (US$71.7) for every GRT. This is in
contrast to the PHP for purse seiners; for small purse seiners
the levy is currently IDR 441 675 (US$33.3) while for large
purse seiners it is IDR. 922 420 (US$69.4) per GRT.
In addition, the blanket ban on transshipment imposed by the
government as part of its commitment to fight against IUU
fishing, has forced fishing vessels to return to port instead
of being able to unload catches onto collecting boats at the
fishing grounds. This adds again to the overall operating cost
per trip.
SMART-Fish
Unloading the P&L caught tuna
Reviving the industry
The upstream and downstream business players of Indonesian
P&L fisheries joined together to form AP2HI in 2014 to
ensure sustainability of their industry. The Association has
been putting its efforts into reviving the P&L industry in
three areas: (i) eco-label certification for premium prices and
better market access; (ii) exploring the possibility of obtaining
alternative live fish bait from farmed fish to reduce costs
and improve availability; and (iii) closely working with the
government to lobby for changes to unfavourable rules and
regulations for P&L tuna fisheries.
Eco-label certification
AP2HI and other stakeholders in Indonesia, including
international NGOs, have been working hard towards
obtaining Marine Stewardship Council (MSC) certification for
the country’s P&L tuna fisheries. This is in response to the
growing demand for sustainable products, including for P&L
tuna, in international markets. Hopefully this will also lead to
better market access and attract premium prices. In reality,
however, obtaining eco-label certification and meeting
minimum international standards have proven not to be so
simple. Proof of healthy stocks, minimum environmental
impact and good governance of the fisheries are key and pre-
requisite conditions for obtaining eco-label certification.
Fisheries Improvement Programmes (FIPs) have been
implemented for many fisheries (including tuna) in Indonesia,
supported by various international and local organisations
in an attempt to improve fish stocks. The P&L and HL FIP
Steering Committee has been established and its members
consist of industry representatives, NGOs, academics and
government representatives with the main aim of guiding the

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30 Marketing
industry in the implementation of the FIPs in order to meet
the standards for eco-label certification.
For instance, traceability has been a key area in which AP2HI
has been working for the past five years. To establish
transparency and traceability, fishing vessels belonging to
AP2HI members have been registered under ISSF and R-Via.
In this initiative, AP2HI works closely with the Indonesian
government, the Ministry of Marine Affairs and Fisheries
(MMAF) as well as various national and international
organisations including the United Nations Industrial
Development Organization (UNIDO) SMART-Fish Programme,
the IPNLF, USAID-funded Oceans Programme, the Walton
Foundation, the Packard Foundation, the MSC GFSF, the
Australian National University and others.
Alternative bait
As mentioned above, the availability and price of live bait
(from wild catches) for the P&L fishery is a big concern for the
industry. AP2HI is looking at farmed milkfish as an alternative,
and trials have been carried out in Larantuka (Flores), Bitung
(North Sulawesi) and Sorong (Papua) with some measure
of success. Further studies and fishing trials are needed to
ensure that the alternative bait is economically viable, as in
some circumstances the milkfish bait is still more expensive
due to limited economies of scale compared with the wild
bait. Changing the mindset of P&L fishermen to use farmed
milkfish as bait also takes time and effort.
SMART-Fish Indonesia
Farming milkfish for P&L bait in a pilot project in Larantuka, Flores
Working with the government to promote sustainable
P&L tuna
P&L industry players, through AP2HI, have established various
collaborative efforts with the government, particularly
the MMAF. At policy level, regular dialogues have been
held to convey aspirations and discuss problems faced by
the industry. The last public-private dialogue was jointly
organised by AP2HI and UNIDO SMART-Fish Programme in
February 2017, involving all stakeholders, especially AP2HI
members and MMAF officials. The results were submitted
and further discussed with the MMAF’s Director General of
Capture Fisheries to ensure that whatever recommendations
and suggestions raised during the dialogue were brought to
the attention of the policymakers.
Public-private dialogue on P&L tuna: discussing
issues and finding solutions
The 2nd Public-Private Tuna Round Table Dialogue (RTD)
was held on 28 February, 2017, in Jakarta. Attended by
44 participants from the private sector and government
representatives including from universities, the RTD was
organised by AP2HI and funded by UNIDO’s SMART-Fish
Programme.
During the RTD, several major issues faced by P&L fisheries
were discussed, among them being:
1. The major problem is the high cost of operation in P&L
fisheries, including the need for expensive live bait and
high taxes. Some P&L vessels have tried to convert into
purse seine vessels to avoid the higher levy based on
Government Regulation No 75/2015. If no amendments
are made to this Regulation, it is expected that P&L
vessels will gradually become purse seine vessels and
that P&L tuna fisheries will slowly disappear from
Indonesian waters;
2. Other matters, related to the licensing system, need
to be looked at in order to minimise the impact of
overfishing due to the use of certain fishing gears which
will damage tuna stocks in certain areas, particularly
those gears that also catch juvenile fish. The objectives
are to increase production from pole and line fisheries,
to promote sustainable fishing gear in Indonesian
waters, and to support MMAF’s three pillars, particularly
on sustainability.
3. It was agreed that the recommendations from the
Round Table would be submitted to the MMAF as inputs
for discussion among the relevant Director Generals
under MMAF such as the DG of Capture Fisheries, DG of
Marketing, and DG of Product Competitiveness, as well
as other MMAF line agencies.
Participants of 2nd Tuna Round Table, February 2017
There has been ongoing collaboration in data collection
obtained directly from P&L fishing vessels, monitoring of the
collecting vessels, and placement of observer programmes on
P&L vessels belonging to AP2HI members. There has also been
a focus on stock improvement in territorial waters and various
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meetings and discussions to establish harvest strategies (HS)
and harvest control rules (HCR) for tuna fisheries. Harvest
Strategies is basically an area of science which looks at
effective management procedures while HCR is a kind of
operational guideline framework of HS that determines how
much fishing can take place for targeted species. Robust HS
and HCR should be in place if P&L tuna fisheries are to be eco-
certified by the MSC or other bodies. MMAF has an ambitious
target to complete, aiming to officially issue the HS and HCR
for its tuna resources by this year.
To promote coastal tuna fisheries, mainly P&L and handline
caught tuna in Indonesia, the International Coastal Tuna
Business Forum (ICTBF) has been held regularly since 2012,
jointly organised by AP2HI, MMAF and other relevant
ministries, and IPNLF. International tuna buyers, government
officials and research institutions, as well as local and
international NGOs from many countries participate in the
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Forum to receive updates, establish networks, and explore
business opportunities for pole & line caught tuna from
Indonesia. The next ICTBF will be held in May 2018.
Closing
Despite huge challenges faced by the industry, P&L tuna
fishermen, processors and exporters have high hopes for a
better future in the wake of growing demand for sustainable
tuna. With support from national and international
organisations, donors and NGOs, AP2HI is confident that
eco-label certification can be achieved by 2019. This will
help to improve market access and increase the value of
pole & line products from Indonesia. The Association is
further committed to producing better quality and eco-
friendly traceable tuna products, and to contribute to the
improvement of the welfare of fishery business actors and
coastal communities in Indonesia.

Ms. Janti Djuari is the President of AP2HI.
For more information: www.ap2hi.org
Mr Ilham Alhaq is the Coordinator
of the Communication and Training
Programme at AP2HI.
Mr. Sudari Pawiro is the National Technical Advisor
(NCTA) of the UNIDO SMART-Fish Programme
in Indonesia which is funded by the Swiss
Government and implemented in collaboration
with MMAF of Indonesia. For more information:
www.smart-fish-Indonesia.org

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