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Currents of Change: The Political Economy of Fisheries and Marine Conservation in Indonesia

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Currents of Change: The Political Economy of Fisheries and Marine Conservation in Indonesia
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  DRAFT WORKING PAPER please submit comments to dealessi@uw.edu i   Currents of Change: The Political Economy of Fisheries andMarine Conservation in Indonesia Michael De Alessi 1  A report to the World Bank’s ALLFISH programJune 2012Abstract: Indonesia is a vast archipelago, stretching over 3,000 miles and including theheart of the coral triangle. Fisheries and marine conservation are fundamentally importantto Indonesia’s large population, but to date the political, legal, and institutional settingsfor fisheries management and marine conservation have been plagued by uncertainty.Even in cases where laws and regulations do exist, monitoring and enforcement are oftenunpredictable, or simply lacking. This uncertainty has caused problems, but it has alsocreated opportunities for entrepreneurs to experiment and innovate at the local level,across the diverse cultural and political landscape of this nation of islands. This paperconsiders the success of a number of those examples. 1 Indonesia Fulbright Senior Scholar, 2011-2012 & Research Scientist, School of Aquatic andFishery Sciences, University of Washington (Seattle),dealessi@uw.edu  Indonesia Source: CIA Factbook 2012  DRAFT WORKING PAPER please submit comments to dealessi@uw.edu ii Table of contents PageIntroduction: Currents of Change in Indonesia …………………………….……………. 1Case: The Wakatobi Dive Resort …………………………………………….……………….. 9 Case: The Misool Eco-Resort ……………………………...……………….………….. 14Case: The Pulau Mas Fishing Company and Karas Island ……………………….....…. 16Case: The Blue Swimming Crab Fishery ………………….....………………………… 18Case: The Lesser Sunda Sustainable Fisheries Initiative ....……………………………. 21Conclusions ………………………………………………………………………….…. 23References …………………………………………………………………………….., 24Appendices 1-5 (summaries and data needs of each case) …………………………….. 29  DRAFT WORKING PAPER please submit comments to dealessi@uw.edu 3 Currents of Change in Indonesia Indonesia is a Southeast Asian archipelago with over 17,000 islands spread across a width of 3,275 miles (5,271 km) (CIA 2012). In a developing country with 34,000 miles of coastline(54,716 km) and a population of almost 250 million people, marine resources play a vital part infood security in Indonesia. Current consumption of fish is about 30kg per capita, a figure whichhas risen steadily since at least 2006 (World Fishing and Aquaculture 2012). Indonesia has athree-tiered system of fisheries management. Boats over 30 GT are licensed by the nationalgovernment and must fish outside of 12 nautical miles from shore. Provinces regulate fishingfrom 4nm out to 12 nm, where licensed boat sizes may range from 5 GT to 30 GT. Nearshore,smaller-scale fishing (less than 5 GT) is the responsibility of the district governments, and boatsunder 5 GT are registered rather than licensed. The majority of fishing pressure is widelydispersed and difficult to monitor as most of Indonesia’s fishermen are small-scale, nearshorefishermen, often fishing for subsistence or small local markets.The Eastern half of Indonesia is the heart of the Coral Triangle, an area stretching from the Northof the Philippines through Indonesia to the Solomon Islands (see map). The Coral Triangle ishome to the world’s richest marine biodiversity, but also significant pressure and degradationdue to both human andenvironmental factors(Allen & Werner 2002). Assuch, conservation andsustainable fisheries withinthe Coral Triangle havegenerated interestworldwide.Indonesia’s geographycombined with its largepopulation and widespreadpoverty has meant thatmonitoring andenforcement of the marineenvironment by the statehas been minimal to date.From Indonesia’sindependence from theDutch in 1945 until the end of the Suharto regime in 1998, political power was increasinglycentralized, including control over natural resources. Most of this centralization took place afterthe Sukarno period (from 1945-1967). When Suharto took control in 1967, his governmentimmediately passed three far-ranging laws 2 that further centralized control over natural resourcesand facilitated foreign investment in their extraction (Resosudarmo 2006). The Suhartogovernment also notably passed Law no. 5/1979 on Village Governance, which created auniform village structure and a hierarchy of control from village all the way to the center in 2 Law 1/1967 on foreign investment, Law 5/1967 on forestry, and Law 11/1967 on mining. The Coral Triangle Source: DEWHA 2010  DRAFT WORKING PAPER please submit comments to dealessi@uw.edu 4Jakarta. This law had the effect of further eroding village control over the management of naturalresources, including forestry and fisheries.When the Suharto regime fell in 1998, a period of decentralization followed, resulting in morecontrol for local government, but also “politicaluncertainty, inconsistent laws and regulations, weak law enforcement, a weak governmental system andinsecurity of land tenure” (Resosudarmo 2006, pg1). Notably, law no. 22/1999 on local governanceand law no. 25/1999 on fiscal balance gave morepolitical power, management authority, and fiscalcontrol to regional government. After the passage of this law, both provincial and district governmentscould pass laws as long as they did not contradictnational law. Law no. 22/1999 also included specificlanguage devolving the management of marine andcoastal resources to district governments, and thelaw that replaced it in 2004, law no. 31/2004continued to devolve authority for nearshorefisheries management to the local level. Just howmuch fishing effort there is at the local level,however, remains poorly documented. Basic Regulatory and Statistical Environment for Fisheries The jurisdiction for nationally managed fisheries is currently the area outside of 12 nauticalmiles. Additionally, boats over 30 GT may not fish inside of 12 nautical miles (the limit forprovincial jurisdiction). Provinces regulate fishing from 4nm out to 12 nm, and of boats from 5GT to 30 GT. Nearshore, smaller-scale fishing (less than 5 GT) is the responsibility of the districtgovernments. Most of the fishing effort in Indonesia comes from these small-scale, nearshorefishermen. In 2010, the Indonesia Ministry of Marine Affairs and Fisheries (MMAF) estimatedthe number of fishermen in Indonesia at 2.6 million 3 and the number of fishing boats at 570,827(MMAF 2011). In 2010, MMAF estimated that 30% of fishing boats were “unmotorized”, downfrom 52% in 2000, when the total number of fishing boats was estimated at 449,558. Thesenumbers are generally unreliable, but it does seem clear that not only the number of fishing boatsis steadily increasing, but also the fishing power of those boats (see sidebar).The increase in fishing power, and presumably in catches, is encouraged by the nationalgovernment, which has an explicit policy to increase both domestic fish production andconsumption (World Fishing and Aquaculture, 2012).Fisheries are regulated and statistics are kept by the Directorate General of Capture Fisherieswithin the Ministry of Marine Affairs and Fisheries. For the national government and theprovincial governments, fishing boats must be licensed, but there are no limits on the number of  3 This number has changed significantly over the last few years, largely due to changes in how the numbers of fishermen have been measured), but it is clear that fishing effort is increasing.   Rate of change by boat size,2000 to 2010 (MMAF 2011) > 200 GT + 2.4% annually100-200 GT + 9.4% annually50- 100 GT + 10.8% annually30- 50 GT + 34.3% annually20- 30 GT + 10.2% annually10-20 GT + 7.4% annually5-10 GT + 5.4% annually< 5 GT + 5.4% annuallyoutboards + 7.0% annuallyno motor - 2.5% annually source: MMAF 2011  DRAFT WORKING PAPER please submit comments to dealessi@uw.edu 5licenses or on harvests from those boats. Internally, MMAF measures success based onproximity of fishing to maximum sustainable yield (an outdated measure). According to oneUSAID review of government effectiveness, even “assuming that data and analysis arescientifically tenable, MMAF still has no management strategy in place for what to do if maximum sustainable yield is reached” (Bolongaita et al 2009, p. 4). There is little doubt thatsmall-scale, artisanal fishing is generally underreported, and measures of harvests also ignoreillegal fishing, which is a significant problem. A 2007 study of the sea of Arafura in EasternIndonesia, for example, estimated illegal, unreported catches of over 1 million tons in that areaalone (Indonesia’s reported catch to FAO is under 5 million tons) (Pitcher et al 2007). Anotherinvestigation found that foreign-owned trawlers fishing in Indonesia waters were reporting onlyabout 30% of their catch (Fegan 2006).On Transparency International’s (2010) corruption index, Indonesia ranks 110 th out of 178countries. Corruption is also a problem in Indonesia generally, and at sea specifically, where theNavy cooperative “INKOPAL” apparently holds fishing licenses and has business relationshipswith foreign fishing companies fishing in Indonesian waters (Fegan 2006). MMAF has also beenthe subject of corruption investigations, and one review of MMAF found that its approach toregulating fisheries was more concerned with revenue generation than conservation (Siry 2006).Corruption and statistical inaccuracy aside, another review of maritime law enforcementidentified the “principal problems” facing the enforcement of laws and regulations in Indonesianwaters (Dirhamsyah 2005): •   Lack of funds •   Lack of equipment •   Lack of trained personnel •   Lack of integrated laws and regulations •   Lack of coordination between regulatory and enforcement agencies •   Lack of environmental awareness •   Inappropriate Judicial System •   A vast maritime jurisdiction
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