KKP Will Diversify The National Shrimp Market

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Maritime Affairs and Fisheries (KKP) has prepared anticipatory steps to the impact of Indonesia's frozen shrimp antidumping case in the US market through market diversification to several potential countries. KKP Budi Sulistiyo in Jakarta, quoted from Antara, Friday, June 14.

Based on ITC Export Potential data, he continued, Indonesian frozen shrimp (HS 030617) still has opportunities in the Chinese and Japanese markets. Meanwhile, frozen shrimp (HS 160521) has potential for Japanese, Australian and South Korean markets. The potential market opportunities for the four countries reached 800 million US dollars, equivalent to a volume of 121 thousand tons of frozen shrimp. "This means that there is an alternative market opportunity, considering the quality of our shrimp is not inferior to other countries," explained Budi.

"Efforts to diversify the Indonesian shrimp market certainly need to be supported by increased business efficiency in cultivation, processing and logistics so that Indonesia's shrimp prices are more competitive," he added.Regarding the imposition of antidumping rates and countervaliding duties (CVD), Indonesia's frozen shrimp has become less competitive in the United States market, his party ensures that the KKP continues to coordinate with the Ministry of Trade, the Ministry of Communication and Fisheries and shrimp players upstream to ensure smooth exports to the United States (US). In addition, the KKP has sent a letter to the Indonesian Embassy in Washington DC to get communication support with US authorities.

This is necessary in the hearing process to defend the results of Indonesia's preliminary demand margin dumping of frozen shrimp. "We continue to move to take the necessary steps to address the accusations of US authorities against shrimp from Indonesia," he said. In line, the Marketing Director of the Directorate General of PDSPKP KKP Erwin Dwiyana explained that Indonesian shrimp in the Chinese market is still open, which is shown by the gap in export opportunities until 2028, estimated at 544 million US dollars. "Especially, the Chinese market, our shrimp prices can still compete with Ecuador," he said. In the Japanese market, shrimp export opportunities until 2028 are estimated at 214 million US dollars. He said, Japan is an optimistic market for frozen shrimp and Indonesian processed shrimp.

"Currently, Indonesia is ranked 3rd as the largest shrimp supply country to the Japanese market with a market share of 16.5 percent competing with Vietnam and Thailand," said Erwin. Meanwhile, for the Australian market, which is also a potential shrimp market, an estimated gap in export opportunities of US$30 million. "We have only contributed 1.32 percent in the Australian shrimp market," he concluded.