In the wake of preliminary decisions on countervailing duties and anti-dumping duties imposed by the US on shrimp imports from India, Ecuador, Indonesia, and Vietnam, the Indonesian government is looking to expand its shrimp export market to other countries. The Ministry of Maritime Affairs and Fisheries (KKP) has identified four new target markets: China, Japan, Australia, and Korea.

Diversification Aimed at Minimizing US Impact

According to ITC Export Potential data, these new markets could bring in USD 800 million for Indonesia, equivalent to exporting 121,000 tons of frozen shrimp. The move is designed to minimize the impact of tax regulations from the US on Indonesia’s frozen shrimp exports to this market. Budi Sulistyo, Director General of the Department of Aquaculture and Fisheries Products Competition (PDSPKP under KKP), believes that anti-dumping and countervailing duties have reduced the competitiveness of Indonesian shrimp in the US market.

ITC Export Potential data suggests that if Indonesian shrimp can compete with other countries’ products in terms of quality, there is a huge opportunity to find alternative markets. Market diversification must be accompanied by efficient farming, processing, and transportation activities to ensure prices remain competitive. Indonesia is already targeting China, where its shrimp prices can compete with those from Ecuador. The potential export gap in 2028 is expected to be USD 544 million in China and USD 214 million in Japan.

Japan Market Promising for Indonesian Shrimp

Japan is currently a promising market for Indonesia’s frozen and processed shrimp. With a market share of 16.5%, Indonesia is the third-largest supplier to Japan, competing with Vietnam and Thailand. Erwin Dwiyana, marketing director of PDSPKP, sees opportunities for growth in this market.

Indonesia was the second-largest shrimp supplier to the US in April 2024, with an export volume of 10,390 tons worth USD 78.5 million. However, this is down 23% in volume and 15% in value compared to the same period last year. In the first four months of the year, Indonesia exported 41,306 tons of shrimp to the US, worth USD 307.9 million, down 18% in volume and 25% in value compared to the same period last year.

Coordinating with Industry

To navigate the complex situation, the Indonesian government will continue to coordinate with the shrimp industry to ensure “smooth sailing” for orders to the US. KKP has sent a letter to the Indonesian Embassy in Washington DC to receive information support from US agencies—paving the way for a hearing to protect Indonesian frozen shrimp from the US’s preliminary decision on dumping margins.