China has emerged as the leading contributor to foreign investment in Indonesia during the first three quarters of 2023. This news comes as a boost to the sector, signaling the potential for growth and cooperation between the two nations.

China Tops the Charts

Chinese investors have poured a substantial amount of capital into Indonesia’s maritime and fisheries sector, contributing more than a quarter of the total foreign investment. The figure stands at IDR 370.74 billion (USD 23.55 million), making China the largest foreign investor in the sector. Malaysia and Switzerland closely follow behind in the list of contributors.

Indonesian Minister of Maritime Affairs and Fisheries, Sakti Wahyu Trenggono, expressed his optimism about the possibilities that this newfound cooperation with China holds. He aims to open up avenues for Indonesian fishery products to penetrate the Chinese market, with a vision of Indonesia becoming one of the top 10 suppliers of fishery products to China.

Challenges in Foreign Investment

While the influx of foreign investment is encouraging, it is worth noting that the overall contribution of foreign investment in the sector remains relatively modest. Foreign investment constitutes less than 15 percent of the total investments, which amount to a significant IDR 9.5 trillion (USD 603.4 million). The majority of funds in Indonesia’s maritime and fisheries sector continue to come from local investors.

Minister Trenggono is actively reaching out to foreign investors to consider opportunities in Indonesia’s maritime and fisheries sector. The government is dedicated to simplifying licensing procedures, offering incentives, ensuring political stability, improving connectivity, and nurturing a skilled workforce, to facilitate and enhance foreign investment.

New Horizons in Shrimp Cultivation

In a move that underscores the commitment to cooperation, Indonesia and China recently inked a memorandum of understanding focused on shrimp cultivation. The agreement involves the Karawang Service Center, a division of the Ministry of Maritime Affairs and Fisheries, and the Guangdong Evergreen Group. Together, they plan to establish an integrated shrimp cultivation area spanning 1,800 hectares in East Sumba, East Nusa Tenggara, fostering growth in the shrimp industry and deepening the partnership between the two countries.