HISTORY OF INDONESIA
“Indonesia isn’t a group of
islands surrounded by sea. It is a sea sprinkled by islands.” A. B. Lapian
History of Indonesia is adorned
by the presence of maritime kingdoms. The kingdoms had territories consisted of
lands separated by seas and relied on marine products for their existence. The
kingdoms used trade and naval power to expand their territories. In the era of
Srivijaya, Majapahit, and other kingdoms such as Gowa-Tallo and Ternate-Tidore,
the Indonesians were once glorious and prosperous, expanding their influence to
India and China. The politics, economics, trade, and naval transportation,
security, and defense was conducted powerfully and made Indonesians be
respected by world community at that time.
It isn’t a surprising thing. This
glory can be achieved because the predecessors was able to utilize the nation’s
potential. They have ideals and understanding of the Nusantara’s (archipelago)
strategic positon and brought the country to be great, independent, and
respected.
OVERVIEW OF INDONESIA'S MARINE AND FISHERY
As the world’s largest
archipelagic state, Indonesia has a territorial area of 5.8 km2,
around 17000 islands, and 95000 km coastline length, the second longest after
Canada. With coastal and sea areas so large, it contains abundant diversity of
marine resources. It has broad and diverse marine ecosystems such as mangroves,
coral reefs, and seagrass beds. In fact, Indonesia is known as the country with
the largest marine biodiversity.
1. Wild
Fishery
Indonesia has a maximum
sustainable yield (MSY) of 6.4 million tons per year (7.5 % of global
production) and has been utilized 4.8 million tons per year (BPS, 2009), around
70% of MSY.
This large amount of production
put Indonesia in the third place of the world’s largest wild fishery after
China and Peru (FAO, 2010).
However, despite the large amount
of production, wild fishery hasn’t contributed to increase in international
reserves and national GDP significantly. Export value of wild fishery in 2010 was
2.6 billion USD, still below Thailand which reached 6.5 billion USD even though
Thai’s total production is ranked 12th in the world. Even though all
the potential of wild fishery is almost fully utilized and overfishing often
happens, many of Indonesia’s fishermen live below poverty line. Indonesia is
still losing the competition in increasing the value added in fishery products
and still having obstruction in fulfilling the standardization of fishery
products such as metal content, antibiotics, and effective and environmentally
friendly management criteria. Furthermore, a number of fish caught in
Indonesia’s water is transshipped and not unloaded at ports. In addition, cases
of illegal fishing also impair the national income.
2. Aquaculture
Aquaculture consists
of marine culture, brackish water pond, fresh water pond, floating fish cages,
and paddy field. During 2003 – 2013, aquaculture production increased
significantly (average increase of 27.23%). Aquaculture reduces overfishing in
some areas such as Strait of Malacca, northern Java, and southern Celebes. The
quality of aquaculture products will be easier to control and competes better
with foreign products. The potency of aquaculture and its usage is shown in
Table 1.
From Table 1, it can be seen that
1.4% of total aquaculture area potency is used. Indonesia has a great
opportunity to develop aquaculture sector. Development of this sector requires
not only utilization of provided area, but also productivity and efficiency
increase by implementing integrally the best aquaculture practices and supply
chain management; pollution control to meet environmental standards; spatial
plan for an integral zone of cultivation, industry, and settlement; and
economic policy that can support this sector.
Aquaculture production by
commodity is shown on Table 2.
3. Fish
Processing Industry
Fish processing industry consists
of canning, salting or drying, smoking, heating, and preserving. Compared to
neighboring countries such as Thailand and Philippines, Indonesia’s fish
processing sector is still outclassed. Abroad, this sector grows because of
technological supremacy and supplies adequacy (some of the supplies come from
Indonesia both legally and illegally). Support of other sector such as taxation
is also performed integrally.
However, today Indonesia is
vigorously upholding law enforcement against illegal fishing. With the
decreasing number of illegal fishing cases and the existence of moratorium on
foreign ship permit policy (prohibition of unbeneficial transshipment),
Indonesia is no longer threatened by fish scarcity in local market and
susceptibility of food security. In fact, the strength of fishing industry
begins to shift to Indonesia. Now many foreign countries are aspiring to invest
in fishery sector.
4. Marine
Biotechnology Industry
Marine biotechnology consists of:
marine resources processing industry (medicine, nutraceutical, cosmetics,
food); bioprocess industry (bioremediation, biofiltration, enzyme
manufactures); and organism cultivation technology. The author hasn’t been able
to find statistical data of biotechnology industry contribution to the national
economy. According to the Center for Coastal and Marine Resources IPB, in 1997,
the value of marine biotechnology industry potential could reach 50 billion USD
per year.
Until now, marine biotechnology
hasn’t become a reliable source of international reserves. The slow development
of marine biotechnology industry is caused by several factors: limited
scientific information as a guide for marine resources management; scarce
knowledge about the value and potential of marine resources; complex marine
ecosystem which require in-depth research; scarce information exchange between
researchers; limited adequate laboratory facilities for research and
development; and tenuous relationship between research institutions and
entrepreneurs in developing biotechnology for industrial application.
Some of the research applied on
an industrial scale, such as industrial fermentation, generally encounter
problems: relatively high investment, inconsistent quality, and economies of
scale which hasn’t reached Break Even Point (BEP).
Here’s a video about the ups and
downs of building a company of biotechnology industry.
5.
Mining and Energy
Indonesia is geologically located
at the the junction of tectonic plates with an abundant source of oil, gas, and
minerals. Coastal and sea areas produce 70% of total oil and gas. From 60
basins potentially contain oil and gas, 40 basins are offshore, 14 are on the coast, and only 6 basins on the mainland.
In addition, seas also contain other energy such as wave energy. This energy is
generated from wave movement towards land and vice versa, and then used to spin
the turbine generator. This type of energy has been developed in Portugal,
known as “Aqucadora Wave Farm”. It can generate 2.25 MW electric power. Other
types of new energy are also fit for further exploration such as gas hydrates and biogenic gas found off the western
Sumatra, southern West Java, and northern Makassar Strait (Richardson, 2008).
Some of Indonesia’s mining and mineral products are gold, silver, manganese,
lithium, phosphorus, and magnesium chloride. The great potential of marine
minerals isn’t managed optimally because of technological, financial, and human
resources inferiority to conduct mineral exploitation.
6. Nautical
Tourism
Indonesia’s diverse flora and
fauna as well as its beautiful seas have received world’s recognition.
Unfortunately, this potential isn’t followed by development of attractions,
particularly in small islands. These works need to be done: development of
nautical tourism facilities and infrastructure (lodging, transportation, etc.),
provision of tourism information system and, and proper promotion.
7.
Mangrove Forests
Mangroves are seed plants
inhabiting intertidal area (conflux of land and sea). Mangrove ecosystem has
significant functions in ecological, environmental, and social-economic
aspects. It can maintain water quality; reduce the impact of storms, waves, and
floods; and serve as timber production source (English et al, 1997). Mangrove
forests can only grow and thrive in tropical areas such as Indonesia.
Indonesia has the world’s most
extensive mangrove forest, with approximately 3.06 million ha or 19% of global
mangrove forest (FAO, 2007). However, Indonesia also sustain extensive damages
on its mangrove forests. It is caused by conversion of mangrove areas,
excessive logging, and pollution such as oil spills. Choosing between
preserving mangroves or converting it, is a complicated matter. Sustainable
development would be the best option.
8. Sea
Transportation
For the world’s largest
archipelagic state, adequate sea transportation facilities are necessary. Indonesia’s
waters have become an important ship lines and trade routes since the 7th
century, the times of Srivijaya and Majapahit. However, Indonesia’s sea
transportation sector is outclassed, particularly in construction technology,
moving facilities, and deepwater port availability. Indonesia doesn’t have
transshipment ports accommodating large transoceanic vessel. It causes
Indonesia to lose billions of international reserves potential.
The slow development of sea
transportation sector is caused by: domination of foreign ships, limited amount
of domestic ships, and high risks in shipping safety.
9.
Resources in Small Islands
10.
Maritime Services and Industry
Maritime services and industry
consist of shipbuilding industry and goods/logistic distribution. In this
sector, Indonesia’s ships and shipyards condition are outclassed. Along with
the moratorium on foreign ships, this sector deserves to be developed.
11.
Unconventional Resources
INDONESIA GDP
Fishery subsector is placed under
agriculture sector in the national field of business. Fishery subsector
contribute 3.2% to the national GDP (CBS, 2014). The
calculation of this value is measured from the contribution of the upstream
industry. Thus, the macro indicator had been created to determine the
contribution of the overall maritime and fisheries economic activity, including
the scope of primary products, secondary products (industry), and tertiary
products (services), namely GDP Satellite Maritime Affairs and Fisheries
(Satelit KP). Satellite GDP contributes 4,32% from the national GDP (CBS,
2012).
The contribution of the Satelit KP to nation GDP is shown on Table 3.
INDUSTRIALIZATION OF MARINE PRODUCTS
From the previous section, it can
be concluded that Indonesia’s problems are: inferior technology and human
resources, unsupportive economic policy, unintegrated development of upstream
and downstream, internationally substandard products, noncompetitive
transportation facilities, as well as noninnovative and unsustainable
development.
To build the mentality of
“maritime nation”, several steps can be taken: strengthening laboratory and
human resources capacity; development of world class ports and shipyard
industry; development of coastal areas by establishing access of electricity,
clean water, and energy; supportive information technology; and
the last is industrialization of marine products. Several issues in the industry are as
follows:
- ·Limited
raw materials and import dependence
- Unintegrated
technology from the upstream to the processing
- No
partnership between researchers and entrepreneurs in developing biotechnology
for industrial application
-
Inept
human resources
Marine products can be processed
into derivative products as shown in Figure 1
Figure 1. Diagram of Marine
Processing Industry (Ministry of Industry, 2010)
Marine products can be processed
into various derivatives such as food, pharmacy, textile, livestock, and
chemicals. By-products and wastes such as skins and bones are also useful.
Philippines, Vietnam, and Malaysia are actively conducting research on marine
processing by-products and wastes. It is easy to find books or journals
regarding utilization of marine processing by-products and wastes.
The Ministry of Industry has set
the development of four maritime industries in 2015-2019: (1) seaweed industry,
(2) fish processing industry, (3) shipbuilding industry, (4) salt industry. An
educated person such as a chemical engineering degree can participate in the
industrialization of marine products by: determining the quality of materials; performing
good and industrially integrated research management; arranging production
effectivity and efficiency; and performing sustainable processing.
SEAWEED (AS EXAMPLE)
Seaweed is produced from two
sources: direct harvest and cultivation. The world’s total seaweed production
is 23.8 million tons, around 96% come from cultivation (FAO, 2012). Indonesia
is the world’s second largest seaweed producer after China, producing 6.5
million tons or 27% of global production. In 2014, the world’s total seaweeds production is 28,5
million tons (FAO, 2014) and Indonesia’s total seaweeds production reached 10,2
million tons (KKP, 2014). Hence, that will enable Indonesia to become the
largest seaweed producer in the world.
Based on its derivatives, seaweed
product can be classified into three groups: agar (Gracilaria sp., Gelidium
sp.), carrageenan (Eucheuma sp., Euchuema cottoni), and alginate (Sargassum
sp., Turbinaria sp.). These products are intermediate goods for food,
cosmetics, etc. The most widely cultivated is Eucheuma cottonii, which has the
largest national and international demand. The value chain of seaweed
processing industry is shown in Figure 2.
Figure 2. Value Chain of Seaweed
Processing Industry (Ministry of Industry, 2014)
Around 60% of national seaweed
production is exported in the form of dried seaweed or without further
processing. China and Philippine are more superior in seaweed processing. It is
ironic, because they are importing seaweed from Indonesia. The inferior seaweed
processing is caused by several factors: uncertainty in stock’s amount,
quality, and fulfillment time; small scale processing technology; and expensive
logistics costs.
Indonesia requires the
development of integrated and sustainable upstream and downstream seaweed
industry. In 2015, export value of processed seaweed was 45.2 million USD.
REVIVING NUSANTARA'S MARITIME GLORY
There are many industrialization
opportunities for other commodities, particularly for high economic values one,
such as shrimp, crab, tuna, skipjack, or mackerel. The Ministry of Marine
Affairs and Fishery has set a target for 2019, that the Fishery GDP contributes
12% to National GDP. It is possible to achieve if relevant stakeholders
cooperate in exploiting existing opportunities.
It is time to be aware of our
strategic advantages. China’s ambition to seize the territory of South and East
China Sea is not only
driven by historical claims or their strategy to create a political diversion. But starting since
1947, it had became their ambition to rule the sea and they had drawn disputes with other
nation such as Japan.
How about Indonesia? Can we be
more expressive in upholding what we have?
Jalesveva jayamahe, di lautan
kita berjaya.
Utari
Student of Chemical Engineering
Institut Teknologi Bandung.
SPECIAL THANKS
- Arif
Hadiyan
- Ryan Fitrian Sofwan
Fauzan
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