Heaptalk, Jakarta — Holding PT Cilacap Samudra Fishing Industry (CSFI), Asha Fortuna Corpora (AFC), cooperates with BPRS Botani Bina Rahmah in financing fishermen. Representing AFC, President Director of CSFI William Sutioso and BPRS Botani Director Bina Rahmah Abdillah Jetha Putra signed a memorandum of understanding (MoU) in Jakarta (11/09).
Through the collaboration, AFC is expected to strengthen upstream sector, specifically to fulfill supplies for CSFI and improve small-scale fishermen’s welfare through partnership projects with fishermen. AFC will provide ten units of the vessel measuring under 30 gross tons (GT) and working capital to fishermen with a five-year contract. In the 5th year, fishermen will have vessels that are paid in installments from the fishing results obtained, with CSFI and its affiliates acting as off-takers.
William Sutioso said, “This partnership project targets fishermen with vessels under 30 GT, although we may open the possibility for vessels above 30 GT in the future. With the condition of high fuel prices as well as rising food prices and other logistics, many fishing boats are leaning on the pier. Therefore, fishermen need working capital to return to the sea.”
Today, the seafood supply is experiencing problems in meeting market demand. Based on CSFI’s internal research, the increase in demand does not only occur in Asia, particularly China, Europe, and America but also in Africa whose market is projected to grow by 2%. Domestic demand is expected to increase with per capita consumption currently reaching 45 kg. This number is still lower than Singapore’s consumption of 100 kg/capita/year.
The collaboration between Asha Fortuna Corpora and BPRS Botani is aligned with CSFI’s mission for a pentahelical collaboration involving business actors and financial institutions as business units, the community as accelerators, the government as regulators, academics as conceptors, and the media as catalysts.
According to the President Director of BPRS Botani Bina Rahmah Abdillah Jetha Putra, currently, only about 0.41% of the total bank financing is distributed to the fishery sector. Abdillah explained, “This is understandable since the upstream fisheries sector is considered to have a high risk. With this collaboration, two things can be achieved, namely increasing bank financing to the fishery sector and decreasing financing risk, which will lead to an increase in the welfare of fishermen.”
BPRS Botani Bina Rahmah is affiliated with IPB University which acts as the spearhead of agricultural and fisheries-based educational institutions which are then strongly related to food independence. BPRS Botani has an interest in the development of the upstream sector as well as the application of research and technology developed by IPB University.
Asha Fortuna Corpora partnered with Ocean Eyes Japan
Director of Operations and Development of CSFI Henry Sutioso said that the Company, through the research division, is working with Ocean Eyes Japan to use artificial intelligence to install fish aggregating devices (FADs). “The location of FADs is determined based on artificial intelligence, weather data, sea currents, and other aspects to make fishermen can harvest more and more fish efficiently,” said Henry.
FAD trials have been carried out in East Lombok by installing ten FADs at a cost of Rp60 million per FAD, equivalent to US$3,823 (US$1= Rp15,692). The installation will be increased by 100 FADs with production is projected to 5,000 tons of fish per year with the need for four vessels. Nusantara vessel 1 is projected to carry 25-50 tons per trip. With a fish price of Rp16,000 per kg, revenue is estimated to reach Rp80 billion or equals US$5 million.
Further, Henry explained that Asha Fortuna Corpora will select fishermen who are entitled to receive assistance in the partnership project. “The output of the project is expected to increase the role of financing in the fisheries sector and the welfare of fishermen, as well as boost Indonesia’s contribution to global trade in fishery products.
According to CSFI Independent Commissioner Eko Teguh Santoso, the fisheries sector is a promising industry. The AFC and banking partnership project is an effort to advance Indonesia’s role in global trade and the availability of fish supply.
“Based on Rabobank’s research, the total world seafood trade in 2021 will reach US$160 billion. With the second longest coastline in the world, Indonesia only contributes 3% of the total world trade value. The seafood trade is 3 times bigger than beef, 5.6 times bigger than pork, and 8 times bigger than poultry,” said Eko.
Changes in healthy lifestyles have resulted in a lift in the demand for seafood. Meanwhile, the great potential of the Indonesian fishery sector has not been fully utilized. To achieve sustainability, the permitted fishing per year is 12 million tons, but currently, the realization is estimated at 4-5 million tons per year. Besides being able to increase CSFI’s market capitalization, the partnership project is expected to be an element of surprise for CSFI in escalating earning per share (EPS) growth.
