LPEI Builds Shrimp Cluster Foreign Exchange Village To Increase Export Growth In East Java

Photo: Doc. LPEI

JAKARTA - Shrimp and its processed products from East Java, Indonesia, have great potential to meet the needs of the global market. Based on data from the International Trade Center (in tademap.org), the export value of World Fisheries (HS 03 and 1603-1605) in the global market in 2021 will reach USD 164.24 billion (up 15.34 percent yoy).

During the last five years (2017-2021) World Fisheries exports on average increased by 3.23 percent per year. Specifically for shrimp and processed products (HS 0306 and 1605), in 2021 it will reach USD48.36 billion (an increase of 26.27 percent yoy in 2021).

During the last five years (2017-2021) the world's exports of shrimp and their processed products increased by 4.91 percent per year on average. Indonesia is one of the exporting countries for fishery commodities and is ranked 11th in the world, besides that it also controls an export market share of 3.2 percent in 2021 (or reaching 5.26 billion US dollars). The five main exporting countries of fishery commodities in the world are China, Norway, Vietnam, India and Canada.

The Head of the IEB Institute Division, Rini Satriani explained, specifically for shrimp products and their processed products, Indonesia was able to rank sixth after India, Ecuador, China, Canada and Vietnam. Indonesia's export value of shrimp and its processed products in 2021 will reach 2.92 billion US dollars or contribute 6.03 percent to the world's total exports of shrimp and their processed products in 2021.

When compared to Indonesia's total fishery exports, Indonesia's shrimp and processed exports contributed 55.41 percent.

The value of Indonesian fishery exports for the January-May 2022 period reached 2.26 billion US dollars, up 15.04 percent YoY from 1.96 billion US dollars compared to the same period in the previous year. For shrimp and processed products during January-May 2022, there was an increase of 17.56 percent (YoY) or reached US$1.27 billion (up from US$1.08 billion in January-May 2021).

Based on the type of commodity, Indonesia's shrimp exports are dominated by lobster, small shrimp (shrimp), large shrimp (prawn) with the main export destinations being the United States, China, Japan, Vietnam and Thailand.

Seeing this potential, Indonesia Eximbank, the Indonesian Export Financing Agency (LPEI) recently inaugurated the Shrimp Cluster Foreign Exchange Village in Situbondo, witnessed by the Deputy Regent of Situbondo Hj. Khoirani S.Pd., MH on Friday 15 July.

As a special institution for the Ministry of Finance's Special Mission Vehicle, LPEI always supports export-oriented micro, small and medium enterprises (MSMEs) through various programs, including the Foreign Exchange Village Program.

LPEI Executive Director, Riyani Tirtoso explained, LPEI continues to synergize with the central and regional governments, other stakeholders in developing the potential of a region. For this reason, through the Foreign Exchange Village Program, LPEI is here to help business actors to increase their capacity, both in terms of knowledge and aspects of production.

"Training and assistance are given to be able to build products of international standard. This Foreign Exchange Village Program also not only promotes products or commodities, but also has the goal of improving the economy and welfare of the people. If the products have high competitiveness, it means that the selling price is also good, then indirectly immediately, the people will prosper," he said.

“This Shrimp Cluster Foreign Exchange Village is a joint development between LPEI and one of our debtors, Panca Mitra Multiperdana (PMMP). The shrimp harvest from the Foreign Exchange Village will be sold to PMMP, so the quality is guaranteed. We hope that in the future there will be more Foreign Exchange Villages by adopting business schemes like this, "said Riyani.