π Tender Overview
Sector / Subsector : Agriculture, natural resources and rural development / Agriculture research and application - Agro-industry, marketing, and trade - Fishery - Irrigation
Gender Equity and Mainstreaming 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.
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