KKP Gaet Perbankan Increases Scale of Fishing Business in KNMP, 14 Locations are Maped

JAKARTA - The Ministry of Marine Affairs and Fisheries (KKP) has partnered with banks to increase the scale of fishing businesses in the Red and White Fishermen's Village (KNMP) location.

Until now, mapping of financing potential has been carried out in 14 KNMP locations.

"Mapping potential not only identifies financing needs, but also directs the business model of each KNMP location by banks from the State-Owned Bank Association (Himbara)," said Acting (Plt) Director General of Strengthening the Competitiveness of Marine and Fishery Products (PDSPKP) KKP Machmud quoted from a written statement, Friday, May 8.

Through this approach, said Machmud, each location is studied specifically, so that the financing scheme is structured to be more measurable, bankable and in line with the principles of banking prudence.

He said that the financing challenge was not only on the availability of funds, but on the readiness of business models that were eligible for financing at the field level.

"Through in-depth per location, we encourage banks to understand business potential more fully so that financing schemes are properly tailored to the characteristics of the business," he said.

Machmud targets, in the near future, a financing scheme in line with the business model at each KNMP location can be implemented immediately.

"The most important thing is that business financing must be accompanied by financial literacy, so that business actors are able to access credit and manage it in a healthy and productive way," he said.

Until the first quarter of 2026, the realization of credit for the marine and fisheries sector program has reached IDR 2.23 trillion which has been disbursed to 131,230 debtors.

This value grew 19.59 percent year-on-year, while the number of debtors increased by 59.79 percent, indicating the wider reach of financing, especially in the micro and ultra micro segments.

In terms of business composition, the distribution structure of financing is still dominated by the upstream sector, namely fishing at 34.88 percent, cultivation at 32.67 percent, followed by salt production at 0.35 percent.

Meanwhile, in the downstream sector, such as the processing of fishery products, it has been distributed by 2.91 percent and the trade in fishery products has reached 22.13 percent.

"This condition shows that there is a large room to encourage financing in the downstream sector which has a higher added value," he explained.

In this context, KNMP is encouraged as a node to strengthen the business ecosystem that integrates upstream to downstream activities in one area.

KKP also strengthens the role of the Red and White Village Cooperative (KDMP) as an aggregator, so that financing is no longer partial, but integrated into one business system that includes production, processing, and marketing.

"Himbara banks and other financial institutions in principle welcome this step and express their readiness to explore business models and prepare financing schemes in accordance with the characteristics of businesses in each location," he explained.

To accelerate the process, continued Machmud, the Ministry of Energy and Mineral Resources has strengthened coordination with banks to ensure more concrete follow-up in deepening the business model and preparing financing schemes.

"With the synergy between the government, banks and business actors, KKP is optimistic that KNMP can become a model for the development of coastal economies that encourage the transformation of businesses to be more productive, integrated and sustainable," he concluded.