| Issue Number : 839

Measured Fishing: Indonesian Efforts to Establish Sustainable Fisheries

Overview

As the largest archipelagic state in the world and a country that is situated between two oceans, Indonesia ranks as the world’s second-largest producer of fish with a total production of 13,000 tons in 2020[1] and has been estimated to have maritime economic potential worth over US$ 1.33 trillion.[2] In addition to Indonesia’s many fisheries commodities, more than 1.27 million individuals were working as fishermen across the country in 2022.[3]

Moreover, Indonesia is currently in the process of promoting and implementing the Association of Southeast Asian Nations (ASEAN) Blue Economy Framework as one of the country’s economic deliverables.[4] Blue economy refers to the development of a marine-based, sustainable economy based on Indonesia’s substantial marine resource potential. In line with this development, the Indonesian Government has already initiated several policies which are being aimed at direct support for marine-based businesses.[5]

Among the various measures and policies that have been established by the Indonesian Government, measured fishing represents a breakthrough in terms of the fostering of the marine and fisheries sector and specifically addresses the so-called blue economy. The new framework of Regulation of the Government No. 11 of 2023 on Measured Fishing (“Regulation 11/2023”) is one of the manifestations of this policy and contains applicable provisions that address measured fishing.[6] Regulation 11/2023 defines measured fishing as controlled and proportional fishing practices that are implemented across measured fishing zones (“Zones”) and that are based on measured fishing quotas (“Quotas”) as a part of efforts aimed at ensuring the sustainability of both fisheries resources and the maritime ecosystem, as well as equality in terms of national growth.[7]

On 1 September 2023, the Minister of Marine Affairs and Fisheries (“Minister”) issued Regulation No. 28 of 2023 on the Implementing Regulation to Regulation of the Government No. 11 of 2023 on Measured Fishing (“Regulation 28/2023”), which comprises 12 chapters that span 116 articles that further detail the implementation of measured fishing, as broadly addressed under Regulation 11/2023.[8] It should also be noted that upon its enforcement, Regulation 28/2023 simultaneously repealed and replaced the following legal frameworks:[9]

  1. Provisions relating to fishing logbooks, as set out under Regulation of the Minister No. 33 of 2021 on Fishing Logbooks, Onboard Monitoring of Fishing Vessels and Transportation Vessels, Inspections, Evaluations and the Marking of Fishing Vessels, as well as the Management of Fishing-Vessel Crew Members (“Regulation 33/2021”);[10] and
  2. Provisions relating to transshipments (alih muatan), as set out under Regulation of the Minister No. 10 of 2021 on Standards for Business Activities and Products During the Organization of Risk-Based Business Licensing Within the Maritime and Fisheries Sector (“Regulation 10/2021”).

 

Given the importance of measured fishing, not only as part of efforts aimed at achieving Indonesia’s blue economy targets but also to ensure that fishing activities are sustainably carried out in ways that ultimately preserve the health of Indonesia’s maritime ecosystem, this edition of Indonesian Law Digest (“ILD”) offers an analysis of various provisions that address the implementation of fishing activities, as detailed under Regulation 28/2023. In order to offer a comprehensive analysis and a clear discussion of the above-listed regulatory frameworks, our discussion has been broken down into the following sections:

  1. Implementation of Quotas
  1. Quota Calculations and Distributions
  2. Quotas for Small-Scale Fishermen
  3. Utilization of Quotas
  4. Quota Transfers
  5. Reporting Obligations
  1. Determinations of Fishing Areas (Daerah Penangkapan Ikan – “DPI”)
  2. Transshipments
  3. Determinations of Base Ports
  4. Fish Landings
  5. Transitional Provisions and Time-Sensitive Obligations

 

I.    Implementation of Quotas

 

A.   Quota Calculations and Distributions

At its core, Regulation 11/2023 states that Quotas for Zones should be determined for each State Fisheries Management Territory of the Republic of Indonesia (Wilayah Pengelolaan Perikanan Negara Republik Indonesia – “WPPNRI”),[11] as located in marine waters and the high seas.[12] In this regard, Regulation 11/2023 classifies these Quotas into three categories, as summarized below:[13]

General Quota Aspects

Quota Classifications

Industrial[14]

Local Fishermen[15]

Non-Commercial[16]

Areas

> 12 nautical miles from the coast (“NM”)

≤ 12 NM

≤ 12 NM and > 12 NM

Eligible utilizers

Encompass:

  1. Individuals (preferably small-scale fishermen belonging to cooperatives); and
  2. Business entities with legal status (limited-liability companies and cooperatives that engage in fishing-related business activities).

Encompass:

  1. Individuals (preferably individuals who are affiliated with cooperatives) who may be either small-scale fishermen or non-small-scale fishermen; and
  2. Legal entities (domestic, limited-liability companies and cooperatives that engage in fishing-related business activities).

All persons, the central government and local governments who engage in activities within the context of education, training, research or other scientific activities, as well as recreational and tourism-related activities

 

In terms of the above-described Quotas, Regulation 28/2023 clarifies that said Quotas should be determined by specifically addressing the relevant types of fish and/or categories of fisheries resources, while said determinations should also take certain factors into consideration. Moreover, determinations of local fishermen’s Quotas should also be carried out in line with the following factors at the very least:

Determining Factors

All Quotas[17]

Specific to Local Fishermen’s Quotas[18]

Number of fishermen

√

√

Number and sizes of fishing vessels

√

√

Fishing equipment

√

 

Amounts of fishing equipment

 

√

Production rate from captured fish

√

√

Data in fishing logbooks

√

 

Characteristics of fisheries commodities and their habitats

√

 

Number of training, education and/or research institutions, as well as tourism organizers that engage in non-commercial fishing activities

√

 

 

In terms of the above-described distribution of Quotas, specifically Quotas for industrial fishing and local fishermen, Regulation 28/2023 states that said distribution should take place within each Zone by specifically addressing the following factors:[19]

  1. Capacities of base ports (in terms of their ability to accommodate fishing vessels and fish transportation vessels [collectively referred to as “Vessels”]); and
  2. Base port construction plans (in accordance with the fishing port master plan and relevant laws and regulations).

 

Furthermore, as the issuance of Quotas should be levied with relevant Non-Tax State Revenue (Penerimaan Negara Bukan Pajak - “PNBP”),[20] Regulation 28/2023 details the following aspects in terms of Quota distribution:

Quota Distribution Aspect

Remarks

Period of granting[21]

Prior to the commencement of one-year’s measured fishing season (“Fishing Season”) that takes place between January and December.

Extra Quotas[22]

In the event that excess Quotas remain after one Fishing Season, then said excess Quotas may be carried over to the next Fishing Season.

Proof of Quota distribution[23]

Take the form of Quota certificates, which will initially have validity by 1 January 2024.

Quota validity periods[24]

Encompass:

  1. Industrial and local fishermen’s Quotas: should conform to the relevant Fisheries Business Permits (Surat Izin Usaha Perikanan – “SIUP”);
  2. Non-commercial Quotas: should have validity in accordance with relevant laws and regulations; and
  3. Industrial and local fishermen’s Quotas for small fishermen: should have validity for as long as the fishermen in question engage in fishing activities.

Fishing-subsector business licensing[25]

Any individuals who have secured industrial and/or local fishermen’s Quotas will be required to submit applications for business licenses which, once issued, will remain valid for one Fishing Season.

Grounds for the non-issuance of Quotas[26]

Any individuals who have yet to partially or entirely utilize their secured industrial and/or local fishermen’s Quotas within a period of two years of their issuance may not be granted their respective Quotas.

 

The above-described Quotas should be issued based on applications that are submitted to the relevant authorities and involve the implementation of certain procedures, as summarized in the following table:

Quota Issuance Aspect

Quota Classification

Industrial[27]

Local Fishermen[28]

Non-Commercial[29]

Application data

Encompass:

  1. Relevant Zone;
  2. Desired Quota amount; and
  3. Relevant base ports.

-

Requirements

Encompass:

  1. Must have secured an SIUP;
  2. Must have secured a fishing vessel book (Buku Kapal Perikanan – “BKP”) for each fishing vessel; and
  3. Must have secured valid taxpayer status.

Encompass:

  1. For training and education activities: non-commercial fishing approval and activity proposal;
  2. For other research and scientific activities: relevant research permit and research proposal; and/ or
  3. For leisure and tourism: non-commercial fishing approval and activity proposal.

Issuance period

Four business days

Seven business days

Issuing parties

Director-General of Capture Fisheries (“Director-General”)

Relevant governor

Director-General (for fishing activities > 12 NM) or relevant governor (for fishing activities ≤ 12 NM)

Following year’s Quota issuance

No application submission is required

-

 

B.   Quotas for Small-Scale Fishermen

As elaborated upon above, Quotas have been classified into three specific categories. Meanwhile, Regulation 28/2023 has now further clarified that industrial and local fishermen’s Quotas should also be allocated to small-scale fishermen, specifcally individuals who engage in fishing as their livelihood, either through the utilization of fishing vessels or not.[30] Quotas for such small fishermen are allocated by the Ministry of Marine Affairs and Fisheries (“Ministry”) (for industrial Quotas) or relevant provincial-level fisheries offices (for local fishermen’s Quotas) through a consideration of the following factors:[31]

  1. The number of small-scale fishermen; and
  2. The production rate of fish caught by small-scale fishermen at fishing ports and/or fishermen’s centers.

 

The required data and requirements that must be fulfilled in order for small-scale fishermen to be able to secure industrial and/or local fishermen’s Quotas remain substantially similar to those that apply to regular industrial and/or local fishermen’s Quota applicants.[32] However, instead of securing SIUP and valid taxpayer status, small-scale fishermen are only required to secure fishing-subsector business licenses in addition to a BKP for each fishing vessel.[33]

As industrial and/or local fishermen’s Quotas for small-scale fishermen are issued by the Minister via the relevant governors, the issuance process should take no longer than seven business days from the date of submission of a given application.[34] Moreover, Regulation 28/2023 mandates that the Ministry and the relevant regional governments should provide facilitation to any small-scale fishermen who wish to secure Quotas through the following means:[35]

  1. Provision of supporting facilities;
  2. Technical assistance; and/or
  3. Guidance and counseling.

 

C.   Utilization of Quotas

Generally speaking, Regulation 28/2023 states that Quotas should be utilized during a single Fishing Season and should be limited to annually allocated Quotas that encompass the entirety of fish categories and/or groups of fisheries resources (collectively referred to as “Commodities”) that are going to be caught.[36] Meanwhile, any excess Commodities may be accounted for as a part of the following year’s Quota utilization. However, it should be noted that said excess accounting excludes small-scale fishermen.[37]

In terms of the utilization of Quotas, Regulation 28/2023 sets out certain provisions that apply under certain conditions, as detailed in the table below:[38]

Condition

Applicable Provisions

The amount of fish caught during one Fishing Season has not reached the allocated Quota.

The remainder of the quota may not be accumulated as a part of the following year’s Quota.

The most recent fishing activities are carried out after the end of the relevant Fishing Season.

All fish that are caught should be accounted for as a part of the applicable Fishing Season whenever fish are landed.

The relevant Regional

Fisheries Management Organization (“RFMO”) has established a catch limit for certain types of fish.

The Director-General should reconcile the fish capture data during the ongoing Fishing Season with subsequent landing during the following Fishing Season.

 

D.   Quota Transfers

Pursuant to Regulation 28/2023, non-commercial Quotas are not transferable to any other parties.[39] However, industrial and local fishermen’s Quotas are transferable as additional Quotas to fishing vessels that have utilized their Quotas for the entire Fishing Season and that wish to re-engage in any fishing activities during the ongoing Fishing Season.[40]

As said Quota transfers should be carried out in relation to unutilized Quotas, such additional industrial and/or local fishermen’s Quotas may be secured through either of the following methods:[41]

  1. Transfer of Quotas from fishing vessels located within the same SIUP (“Quota Transfer Method I”); or
  2. Transfer of Quotas from fishing vessels located in different SIUP (“Quota Transfer Method II”).

 

In terms of the above-described Quota transfer methods, certain conditions must be fulfilled in relation to each method, as summarized in the following table:

Conditions

Industrial Quotas

Local Fishermen’s Quotas

Quota Transfer Method

Quota Transfer Method

I[42]

II[43]

I[44]

II[45]

Fishing vessels that transfer and receive Quotas must have DPI that are located in the same Zone.

√

√

 

 

Fishing vessels that transfer and receive Quotas must have DPI that are located in the same Zone and province.

 

 

√

 

Fishing vessels that transfer and receive Quotas must have DPI that are located in the same Zone or located between the Zone and a distance of 12 NM within the same province.

 

 

 

√

Fishing vessels that transfer and receive Quotas must utilize the same fishing equipment.

√

√

√

√

Fishing vessels that transfer and receive Quotas must utilize the same base ports.

√

√

√

√

Fishing vessels that transfer and receive Quotas must have utilized their Quotas for a period of at least two years.

 

√

 

√

Fishing vessels that transfer their Quotas must have used up a minimum of 50% of their ongoing Fishing Season Quotas.

 

√

 

√

 

It should also be noted that the above-described Quota transfers should be implemented based on submitted applications for Quota certificate amendments, while the verification periods for said submissions should be completed within three business days of all of the requirements that apply to said applications being complete and correctly submitted.[46] In terms of said submissions, Regulation 28/2023 sets out the following details:[47]

Aspects

Quota Type

Industrial

Local Fishermen

Parties responsible for issuing approvals/rejections to submitted Quota certificate amendment applications

Director-General

Relevant governor

Form of application submission

Through an app provided by the Ministry

Validity period[48]

Issued Quota certificate amendments will not affect the validity periods of any originally issued Quota certificates.

Imposition of PNBP[49]

The securing of Quota transfers through Quota Transfer Method I is processed free of charge, the securing of Quota transfers through Quota Transfer Method II will be subject to PNBP in accordance with relevant laws and regulations.

 

E.   Reporting Obligations

Regulation 28/2023 obliges all parties that have utilized Quotas to submit business activity reports on their Quota utilization. Submitting parties may differ depending on the utilized Quota. In summary, Regulation 28/2023 states that the following parties are responsible for the submission and receipt of said reports:[50]

Reporting Parties

Utilized Quota

Maximum Submission Deadline

Authority

Individuals

Industrial

31 January of the following year

Director-General

Individuals, central and regional governments

Non-commercial beyond 12 NM

Individuals

Local fishermen

Relevant governor

Individuals, central and regional governments

Non-commercial up to 12 NM

 

Meanwhile, in terms of the minimum information that must be set out in the above-described reports, Regulation 28/2023 details the following:

Information

Quota Type

Industrial and Local Fishermen[51]

Non-Commercial[52]

Total Quota received during one Fishing Season

√

√

Total amount of Quota used during one Fishing Season

√

√

Information on any Quota transfers that have been completed (e.g. names of Vessels, Zones and SIUP holders)

√

 

Distribution of caught fish

√

 

Amount of retribution or PNBP that has been paid

√

√

 

II.  Determinations of DPI

According to Regulation 11/2023, DPI are classified into two forms, one being regular DPI that are designated for all fishing activities and the other being restricted DPI that are only designated for certain sizes of fishing vessels, types of equipment and/or periods.[53] Regulation 28/2023 sets out further details of the latter forms of DPI and affirms that said areas will be determined by the Minister based on certain fishing conditions and restrictions, as summarized in the following table:

Fishing Conditions[54]

Restrictions[55]

Encompass:

  1. Fish resources (i.e. fish spawning and/or nursery locations and declining fish resource stocks);
  2. Environmental fish resources (i.e. environmental pollution or damage caused by either natural or human factors);
  3. Socioeconomic factors relating to fisheries (i.e. fishermen’s welfare levels, customs, local cultural conditions, local wisdom and/or fishermen-related conflicts); and/or
  4. Fisheries governance (i.e. fish management plans, fish utilization strategies and/or compliance with fisheries-related regulatory frameworks).

Encompass:

  1. Specific regions/coordinates;
  2. Certain Vessels;
  3. Certain business scales;
  4. Certain fishermen and/or community groups;
  5. Certain periods;
  6. Certain fishing equipment; and/or
  7. Certain sizes and/or types of fish.

 

In terms of their utilization, Regulation 28/2023 states that restricted DPI may only be utilized by certain specific parties, as follows:[56]

  1. Small fishermen; and/or
  2. Any individuals, central and regional governments that engage in non-commercial activities.

 

III. Transshipments

Matters relating to transshipments were originally introduced under the Appendix to Regulation 10/2021. Said framework stated that Vessels were permitted to engage in transshipments in compliance with RFMO regulations (from the high seas to base ports) or other international conventions (that apply within the Pacific and/or Indian Oceans).[57]

These types of legal instruments no longer feature under the new framework of Regulation 11/2023. However, Regulation 11/2023 clearly defines transshipments as activities that involve the transfer of caught fish from fishing vessels to fish transportation vessels.[58] Moreover, said regulation mandates that any parties that engage in transshipments must comply with the following requirements:[59]

Transshipment Requirements

Vessel Type

Fishing

Fish Transportation

Must utilize tuna longlines and tuna hand lines

√

 

Must be a part of a single business units (i.e. as included under single fisheries permits)

√

√

 

It is important to note that the above-described transshipment requirements have been enforced since 1 January 2023 for Vessels that have secured fishing and fish transportation subsector business licenses.[60] Moreover, Vessels must fulfill various obligations whenever they engage in transshipments in accordance with their operational areas, as detailed in the following table:

Transshipments in WPPNRI Other Than RFMO Competence or Convention Areas[61]

Obligations

Vessel Type

Fishing

Fish Transportation

Vessel owners must be willing to accept the presence of Vessel monitoring officers (“Monitoring Officers”) on board their Vessels.

√

√

Vessel captains must draft transshipment reports.

√

√

Vessel captains must submit transshipment reports.

 

√

Vessel captains must inform the relevant fisheries authorities of their transshipment plans upon securing shipment approvals.

 

√

 

Transshipments in RFMO Competence or Convention Areas[62]

Obligations

Vessel Type

Fishing

Fish Transportation

Transshipments must be overseen by onboard Monitoring Officers through the RFMO or onboard other Vessels that are up to RFMO standards.

√

√

Must be listed on the same RFMO Vessel list.

√

√

Vessel owners or captains must inform the Director-General and relevant fisheries authorities of their transshipment plans in writing at least 48 hours prior to the commencement of the relevant transshipments.

√

 

Vessel owners or captains must inform the Director-General and relevant fisheries authorities of their transshipment plans in writing at least 72 hours prior to the commencement of the relevant transshipments.

 

√

Vessel captains must draw up transshipment reports that are subsequently be signed by relevant parties

√

 

Vessel owner or captains must submit their transshipment plans electronically to the relevant fisheries authorities within five business days of the completion of the relevant transshipments.

√

 

Vessel captains must submit their transshipment plans electronically to the Director-General, relevant fisheries authorities and relevant RFMO within 24 hours of the completion of the relevant transshipments.

 

√

 

It is important to note that any failure to comply with the above-described obligations will be categorized as a violation of business licensing obligations and will thus be subject to the imposition of administrative sanctions in accordance with the relevant laws and regulations.[63]

 

IV. Determinations of Base Ports

Based on the above discussion, it can be concluded that base ports are essential in order to adequately measure fishing activities, particularly in terms of the various locations in which Vessels are harbored and fish are landed.  Pursuant to Regulation 11/2023, base ports within each Zone are to be determined by the Minister and comprise the following classifications:[64]

  1. Fishing ports that are built and/or operated by the central or regional government (“Ports I”);
  2. Fishing ports that are not built and/or operated by the central or regional government (“Ports II”); and
  3. Public ports (“Ports III”).

 

In order to be classified as one of the above-described base-port types, Regulation 28/2023 has further clarified that prospective base ports must fulfill certain requirements. In terms of Ports I specifically, however, Regulation 28/2023 also states that determinations of said ports should be decided based on submitted written applications.[65] The overall applicable requirements that have to be met in order to be classified as a base port are detailed in the following table:[66]

Requirements

Base-Port Classification

I

II

III

Must be listed in the National Fishing Port Masterplan

√

√

 

Must have been determined as a fishing port

 

√

 

Must have certain facilities in place, including: 1) Main facilities (e.g. land, pier, pool and so forth); 2) Functional facilities (e.g. administrative office, fish markets and basic electrical and plumbing utilities); and 3) Supporting facilities (e.g. restrooms)

√

√

 

Must have been approved by the Ministry of Transportation

 

 

√

 

Base-port determinations will be carried out by the Minister based on verification results that address the fulfillment of the above-listed requirements and that are submitted by the Director-General.[67] Regulation 28/2023 also states that several mandates apply to certain parties in relation to base ports and must be fulfilled, as detailed in the table below:[68]

Mandated Parties

Mandate

Ministry and relevant regional governments

Facilitate business licensing and the development of Ports I

Engage in cooperation for the management and development of Ports II

Ports II owners

Establish and develop downstream industries (e.g. fish management, fish marketing and other supporting businesses)

Involve local communities during the establishment, development and operation of fishing ports

Individuals who have been granted Quotas

May establish and/or develop downstream industries at base ports, as elaborated upon above

 

V.   Fish Landings

In terms of fish landings (pendaratan ikan), Regulation 28/2023 mandates that Vessels should implement the following matters:[69]

Vessel Type

Mandate

Maximum Number of Base Ports

Fishing

Land any caught fish at determined base ports that are located in Zones

Five base ports located in Zones

Fish transportation

Land any caught fish at the same base port as the relevant fishing vessels

Five base ports located in Zones in accordance with the relevant fishing vessel’s fishing Zone

 

While the above mandate seems straightforward enough, Regulation 28/2023 also sets out a number of alternative landing destinations that may be used if various conditions lead to any inability to fulfill the above mandates. Said alternatives break down as follows:

Reason for Fish Landing Mandate Failure

Alternative Landing Destination

Other Remarks

Emergency conditions that may result in the degradation of fish quality[70]

Other base ports that have been determined by the Minister

Upon arriving at the alternative base port, the Vessel captain or owner should submit a written request to the relevant port authority regarding the landing of their fish cargo.

The absence of base ports in the relevant Zone[71]

Base ports located in the nearest Zones

Vessels should be granted relevant business licenses for any alternative base ports that are utilized.[72]

The relevant base ports are in a state of Vessel overcapacity[73]

-

Base port harbors and/or pools may not be utilized for the harboring of Vessels of certain sizes[74]

-

 

In terms of emergency fish landings specifically, as elaborated upon above, Regulation 28/2023 affirms that required written requests should be reviewed within 24 hours of their being received by the relevant port authorities, while the relevant Vessel captains or owners must first secure the following documents:[75]

Documents

Remarks

Shipping approval

Statement letter

Issued by the Vessel captain

Stipulates that fish quality degradation may occur if the fish cargo is not landed.

Stipulates poor weather conditions, as complemented by a weather situation report issued by the Meteorology, Climatology and Geophysical Agency (Badan Meteorologi, Klimatologi, dan Geofisika/BMKG).

Issued by a Vessel repair station/service provider

Stipulates that the Vessel in question has sustained damage.

 

It should also be noted that the above-described landing mandates exempt small-scale fishermen, meaning that fish landings in this case may be carried out in the relevant fishermen’s centers.[76] Moreover, any cooperatives that work within the fisheries sector (on behalf of their members) and small-scale fishermen that are not part of said cooperatives are required to report the occurrence of each fish landing through an app that has been provided by the Ministry.[77]

 

VI. Transitional Provisions and Time-Sensitive Obligations

Upon its enforcement, certain permits, goods or activities will remain valid or applicable until a certain issuance or actions have taken place, as detailed in the table below:[78]

Permits, Goods or Activities

Validity Period

SIUP issued prior to the enforcement of Regulation 28/2023

These will remain valid until new SIUPs are issued based on Regulation 28/2023.

Fishing and fish transportation subsector business licenses issued prior to the enforcement of Regulation 28/2023

Thses will remain valid until new business licenses are issued based on Regulation 28/2023.

Fishing activities that are undertaken by small-scale fishermen and that conform to provisions in place prior to the enforcement of Regulation 28/2023

Said fishing activities may continue to be carried out until the issuance of industrial and/or local fishermen’s Quotas.

Caught fish that have been landed after the issuance of Quota certificates

Should initially be counted as part of the relevant Quota utilization.

Vessels that have secured relevant subsector business licenses and/or registrations but which have yet to secure Vessel Procurement Approvals (Persetujuan Pengadaan Kapal Perikanan - “PPKP”) and/or BKP

The relevant governor should issue the relevant PPKP and/or BKP without any application basis by referring to the available data while no administrative sanctions should be imposed.

 

In addition to the above-mentioned matters, certain mandates that have been set under the framework of Regulation 28/2023 are time-sensitive in nature and must be complied with within certain timeframes. The following table sets out details of these time-sensitive obligations:

Parties

Mandate

Deadline or Applicability Period

Any individuals that secured SIUP prior to the enforcement of Regulation 28/2023[79]

Must submit an SIUP amendment application to the Minister or relevant governor

31 December 2023

Any individuals who secured fishing and fish transportation subsector business licenses prior to the enforcement of Regulation 28/2023[80]

Must submit an application for the amendment of the relevant business licensing to the Minister or relevant governor

Fish transportation vessels that transport fish from DPI and that secured fish transportation subsector business licenses prior to the enforcement of Regulation 28/2023[81]

May be granted four base ports in the WPPNRI and one base port in accordance with the relevant business or residence domiciles

31 December 2024

Small-scale fishermen who have yet to secure the required industrial and/or local fishermen’s Quotas[82]

May alternatively utilize the following documents:

  1. Vessel registration marks for small-scale fishermen;
  2. Maritime and fisheries business and supporting business cards; or
  3. Statement letters issued by village heads affirming that the individuals in question are indeed small-scale fishermen, complemented by official Citizenship Identification Numbers (Nomor Induk Kependudukan/NIK).

31 December 2025

 

Conclusion

The above analysis demonstrates that the various measured fishing aspects that are addressed under Regulation 28/2023 deal with a number of highly important matters that should support Indonesia’s efforts towards establishing a sustainable fisheries sector. Moreover, the introduction of Quotas, specifically for small-scale fishermen, ultimately represents a form of recognition regarding the rights of small-scale fishermen across the country who have traditionally engaged in fishing activities over many generations, particularly such communities that are operating within restricted DPI.[83] In essence, all fishermen and Vessel operators, regardless of the scales of their business operations, should familiarize themselves with the relevant applicable mandates and rights that are addressed under the new framework of Regulation 28/2023, particularly if said parties engage in measured fishing activities within Zones that are located across the nation. (KS)

 

 

 

 


[1] Institut Teknologi Bandung, “Indonesia Has the Potential to Become the Largest Aquaculture Country in the World”, as accessed through: https://www.sbm.itb.ac.id/2023/04/27/indonesia-has-the-potential-to-become-the-largest-aquaculture-country-in-the-world/ on 15 September 2023.

[2] Bisnis.com, “Kekayaan Laut Indonesia Hampir Rp20.000 Triliun, KKP Beri Penjelasan”, as accessed through: https://ekonomi.bisnis.com/read/20220729/99/1560541/kekayaan-laut-indonesia-hampir-rp20000-triliun-kkp-beri-penjelasan on 15 September 2023.

[3] Data Indonesia, “Ada 1,27 Juta Nelayan di Indonesia pada 2022”, as accessed through: https://dataindonesia.id/sektor-riil/detail/ada-127-juta-nelayan-di-indonesia-pada-2022 on 15 September 2023.

[4] Kementerian Perencanaan Pembangunan Nasional/Badan Perencanaan Pembangunan Nasional, “Bappenas Pastikan Blue Economy Jadi Prioritas Kerja Sama Negara ASEAN”, as accessed through: https://www.bappenas.go.id/id/berita/bappenas-pastikan-blue-economy-jadi-prioritas-kerja-sama-negara-asean-1DeBg on 15 September 2023.

[5] For a broader perspective on Indonesian efforts to implement the blue economy, see the following edition of ILD: “Development of Indonesia's Blue Economy: Unlocking Untapped Potential”.

[6] Regulation 11/2023 was briefly discussed in Indonesian Legal Brief (“ILB”) No. 4593.

[7] Art. 1 (1), Regulation 11/2023.

[8] Recitals and Art. 116, Regulation 28/2023.

[9] Art. 115, Regulation 28/2023.

[10] Regulation 33/2021 was briefly discussed in ILB No. 4221.

[11] For more on the available Zones, see the following edition of ILD: “Development of Indonesia's Blue Economy: Unlocking Untapped Potential”.

[12] Art. 6, Regulation 11/2023.

[13] Art. 7, Regulation 11/2023.

[14] Art. 8, Regulation 11/2023.

[15] Art. 9, Regulation 11/2023.

[16] Art. 10, Regulation 11/2023.

[17] Art. 5, Regulation 28/2023.

[18] Art. 6, Regulation 28/2023.

[19] Arts. 9 - 11, Regulation 28/2023.

[20] Art. 12 (6), Regulation 28/2023.

[21] Art. 12 (2 - 3), Regulation 28/2023.

[22] Art. 12 (4), Regulation 28/2023.

[23] Arts. 12 (5) and 112, Regulation 28/2023.

[24] Art. 13, Regulation 28/2023.

[25] Arts. 18 and 25, Regulation 28/2023.

[26] Arts. 19 and 26, Regulation 28/2023.

[27] Arts. 15 - 17, Regulation 28/2023.

[28] Arts. 21 - 24, Regulation 28/2023.

[29] Arts. 35 - 37, Regulation 28/2023.

[30] Art. 1 (10), Regulation 28/2023.

[31] Art. 8, Regulation 28/2023.

[32] Compare Art. 30 with Arts. 15 and 22, Regulation 28/2023.

[33] Ibid.

[34] Art. 31, Regulation 28/2023.

[35] Art. 33, Regulation 28/2023.

[36] Art. 39 (1 - 3), Regulation 28/2023.

[37] Art. 39 (4), Regulation 28/2023.

[38] Art. 40, Regulation 28/2023.

[39] Art. 59, Regulation 28/2023.

[40] Arts. 41 (1 - 2) and 50 (1 - 2), Regulation 28/2023.

[41] Arts. 41 (3 - 4) and 50 (3 - 4), Regulation 28/2023.

[42] Art. 42, Regulation 28/2023.

[43] Art. 46 (1), Regulation 28/2023.

[44] Art. 51, Regulation 28/2023.

[45] Art. 55 (1), Regulation 28/2023.

[46] Arts. 43, 47, 52 and 56, Regulation 28/2023.

[47] Ibid.

[48] Arts. 44, 48, 53 and 57, Regulation 28/2023.

[49] Arts. 45, 49, 54 and 58, Regulation 28/2023.

[50] Arts. 75 and 78, Regulation 28/2023.

[51] Arts. 75 (4) and 78 (4), Regulation 28/2023.

[52] Arts. 75 (5) and 78 (5), Regulation 28/2023.

[53] Art. 1 (5), Regulation 11/2023 and Art. 1 (6), Regulation 28/2023.

[54] Art. 81 (2), Regulation 28/2023.

[55] Art. 81 (3), Regulation 28/2023.

[56] Art. 82, Regulation 28/2023.

[57] Appendix II, Regulation 10/2021, pp.919 - 922.

[58] Elucidation to Art. 22 (1), Regulation 11/2023.

[59] Art. 22 and its elucidation, Regulation 11/2023.

[60] Art. 111, Regulation 28/2023.

[61] Art. 84, Regulation 28/2023.

[62] Art. 85, Regulation 28/2023.

[63] Art. 86, Regulation 28/2023.

[64] Art. 20, Regulation 11/2023.

[65] Art. 88 (2 - 4), Regulation 11/2023.

[66] Art. 88 (1) and (5), Regulation 28/2023.

[67] Art. 89, Regulation 28/2023.

[68] Art. 90, Regulation 28/2023.

[69] Art. 91, Regulation 28/2023.

[70] Art. 92, Regulation 28/2023.

[71] Art. 94 (1), Regulation 28/2023.

[72] Art. 94 (3), Regulation 28/2023.

[73] Art. 94 (2), Regulation 28/2023.

[74] Ibid.

[75] Art. 92 (4 - 7), Regulation 28/2023.

[76] Art. 95 (1), Regulation 28/2023.

[77] Art. 95 (2 - 3), Regulation 28/2023.

[78] Art. 102, Regulation 28/2023.

[79] Art. 103, Regulation 28/2023.

[80] Arts. 105 - 106, Regulation 28/2023.

[81] Art. 110, Regulation 28/2023.

[82] Art. 114, Regulation 28/2023.

[83] Detik.com, “Kemerdekaan, Perlindungan Nelayan Kecil & Penangkapan Ikan Terukur”, as accessed through: https://news.detik.com/kolom/d-6882704/kemerdekaan-perlindungan-nelayan-kecil--penangkapan-ikan-terukur on 15 September 2023.

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Overview

As the largest archipelagic state in the world and a country that is situated between two oceans, Indonesia ranks as the world’s second-largest producer of fish with a total production of 13,000 tons in 2020[1] and has been estimated to have maritime economic potential worth over US$ 1.33 trillion.[2] In addition to Indonesia’s many fisheries commodities, more than 1.27 million individuals were working as fishermen across the country in 2022.[3]

Moreover, Indonesia is currently in the process of promoting and implementing the Association of Southeast Asian Nations (ASEAN) Blue Economy Framework as one of the country’s economic deliverables.[4] Blue economy refers to the development of a marine-based, sustainable economy based on Indonesia’s substantial marine resource potential. In line with this development, the Indonesian Government has already initiated several policies which are being aimed at direct support for marine-based businesses.[5]

Among the various measures and policies that have been established by the Indonesian Government, measured fishing represents a breakthrough in terms of the fostering of the marine and fisheries sector and specifically addresses the so-called blue economy. The new framework of Regulation of the Government No. 11 of 2023 on Measured Fishing (“Regulation 11/2023”) is one of the manifestations of this policy and contains applicable provisions that address measured fishing.[6] Regulation 11/2023 defines measured fishing as controlled and proportional fishing practices that are implemented across measured fishing zones (“Zones”) and that are based on measured fishing quotas (“Quotas”) as a part of efforts aimed at ensuring the sustainability of both fisheries resources and the maritime ecosystem, as well as equality in terms of national growth.[7]

On 1 September 2023, the Minister of Marine Affairs and Fisheries (“Minister”) issued Regulation No. 28 of 2023 on the Implementing Regulation to Regulation of the Government No. 11 of 2023 on Measured Fishing (“Regulation 28/2023”), which comprises 12 chapters that span 116 articles that further detail the implementation of measured fishing, as broadly addressed under Regulation 11/2023.[8] It should also be noted that upon its enforcement, Regulation 28/2023 simultaneously repealed and replaced the following legal frameworks:[9]

  1. Provisions relating to fishing logbooks, as set out under Regulation of the Minister No. 33 of 2021 on Fishing Logbooks, Onboard Monitoring of Fishing Vessels and Transportation Vessels, Inspections, Evaluations and the Marking of Fishing Vessels, as well as the Management of Fishing-Vessel Crew Members (“Regulation 33/2021”);[10] and
  2. Provisions relating to transshipments (alih muatan), as set out under Regulation of the Minister No. 10 of 2021 on Standards for Business Activities and Products During the Organization of Risk-Based Business Licensing Within the Maritime and Fisheries Sector (“Regulation 10/2021”).

 

Given the importance of measured fishing, not only as part of efforts aimed at achieving Indonesia’s blue economy targets but also to ensure that fishing activities are sustainably carried out in ways that ultimately preserve the health of Indonesia’s maritime ecosystem, this edition of Indonesian Law Digest (“ILD”) offers an analysis of various provisions that address the implementation of fishing activities, as detailed under Regulation 28/2023. In order to offer a comprehensive analysis and a clear discussion of the above-listed regulatory frameworks, our discussion has been broken down into the following sections:

  1. Implementation of Quotas
  1. Quota Calculations and Distributions
  2. Quotas for Small-Scale Fishermen
  3. Utilization of Quotas
  4. Quota Transfers
  5. Reporting Obligations
  1. Determinations of Fishing Areas (Daerah Penangkapan Ikan – “DPI”)
  2. Transshipments
  3. Determinations of Base Ports
  4. Fish Landings
  5. Transitional Provisions and Time-Sensitive Obligations

 

I.    Implementation of Quotas

 

A.   Quota Calculations and Distributions

At its core, Regulation 11/2023 states that Quotas for Zones should be determined for each State Fisheries Management Territory of the Republic of Indonesia (Wilayah Pengelolaan Perikanan Negara Republik Indonesia – “WPPNRI”),[11] as located in marine waters and the high seas.[12] In this regard, Regulation 11/2023 classifies these Quotas into three categories, as summarized below:[13]

General Quota Aspects

Quota Classifications

Industrial[14]

Local Fishermen[15]

Non-Commercial[16]

Areas

> 12 nautical miles from the coast (“NM”)

≤ 12 NM

≤ 12 NM and > 12 NM

Eligible utilizers

Encompass:

  1. Individuals (preferably small-scale fishermen belonging to cooperatives); and
  2. Business entities with legal status (limited-liability companies and cooperatives that engage in fishing-related business activities).

Encompass:

  1. Individuals (preferably individuals who are affiliated with cooperatives) who may be either small-scale fishermen or non-small-scale fishermen; and
  2. Legal entities (domestic, limited-liability companies and cooperatives that engage in fishing-related business activities).

All persons, the central government and local governments who engage in activities within the context of education, training, research or other scientific activities, as well as recreational and tourism-related activities

 

In terms of the above-described Quotas, Regulation 28/2023 clarifies that said Quotas should be determined by specifically addressing the relevant types of fish and/or categories of fisheries resources, while said determinations should also take certain factors into consideration. Moreover, determinations of local fishermen’s Quotas should also be carried out in line with the following factors at the very least:

Determining Factors

All Quotas[17]

Specific to Local Fishermen’s Quotas[18]

Number of fishermen

√

√

Number and sizes of fishing vessels

√

√

Fishing equipment

√

 

Amounts of fishing equipment

 

√

Production rate from captured fish

√

√

Data in fishing logbooks

√

 

Characteristics of fisheries commodities and their habitats

√

 

Number of training, education and/or research institutions, as well as tourism organizers that engage in non-commercial fishing activities

√

 

 

In terms of the above-described distribution of Quotas, specifically Quotas for industrial fishing and local fishermen, Regulation 28/2023 states that said distribution should take place within each Zone by specifically addressing the following factors:[19]

  1. Capacities of base ports (in terms of their ability to accommodate fishing vessels and fish transportation vessels [collectively referred to as “Vessels”]); and
  2. Base port construction plans (in accordance with the fishing port master plan and relevant laws and regulations).

 

Furthermore, as the issuance of Quotas should be levied with relevant Non-Tax State Revenue (Penerimaan Negara Bukan Pajak - “PNBP”),[20] Regulation 28/2023 details the following aspects in terms of Quota distribution:

Quota Distribution Aspect

Remarks

Period of granting[21]

Prior to the commencement of one-year’s measured fishing season (“Fishing Season”) that takes place between January and December.

Extra Quotas[22]

In the event that excess Quotas remain after one Fishing Season, then said excess Quotas may be carried over to the next Fishing Season.

Proof of Quota distribution[23]

Take the form of Quota certificates, which will initially have validity by 1 January 2024.

Quota validity periods[24]

Encompass:

  1. Industrial and local fishermen’s Quotas: should conform to the relevant Fisheries Business Permits (Surat Izin Usaha Perikanan – “SIUP”);
  2. Non-commercial Quotas: should have validity in accordance with relevant laws and regulations; and
  3. Industrial and local fishermen’s Quotas for small fishermen: should have validity for as long as the fishermen in question engage in fishing activities.

Fishing-subsector business licensing[25]

Any individuals who have secured industrial and/or local fishermen’s Quotas will be required to submit applications for business licenses which, once issued, will remain valid for one Fishing Season.

Grounds for the non-issuance of Quotas[26]

Any individuals who have yet to partially or entirely utilize their secured industrial and/or local fishermen’s Quotas within a period of two years of their issuance may not be granted their respective Quotas.

 

The above-described Quotas should be issued based on applications that are submitted to the relevant authorities and involve the implementation of certain procedures, as summarized in the following table:

Quota Issuance Aspect

Quota Classification

Industrial[27]

Local Fishermen[28]

Non-Commercial[29]

Application data

Encompass:

  1. Relevant Zone;
  2. Desired Quota amount; and
  3. Relevant base ports.

-

Requirements

Encompass:

  1. Must have secured an SIUP;
  2. Must have secured a fishing vessel book (Buku Kapal Perikanan – “BKP”) for each fishing vessel; and
  3. Must have secured valid taxpayer status.

Encompass:

  1. For training and education activities: non-commercial fishing approval and activity proposal;
  2. For other research and scientific activities: relevant research permit and research proposal; and/ or
  3. For leisure and tourism: non-commercial fishing approval and activity proposal.

Issuance period

Four business days

Seven business days

Issuing parties

Director-General of Capture Fisheries (“Director-General”)

Relevant governor

Director-General (for fishing activities > 12 NM) or relevant governor (for fishing activities ≤ 12 NM)

Following year’s Quota issuance

No application submission is required

-

 

B.   Quotas for Small-Scale Fishermen

As elaborated upon above, Quotas have been classified into three specific categories. Meanwhile, Regulation 28/2023 has now further clarified that industrial and local fishermen’s Quotas should also be allocated to small-scale fishermen, specifcally individuals who engage in fishing as their livelihood, either through the utilization of fishing vessels or not.[30] Quotas for such small fishermen are allocated by the Ministry of Marine Affairs and Fisheries (“Ministry”) (for industrial Quotas) or relevant provincial-level fisheries offices (for local fishermen’s Quotas) through a consideration of the following factors:[31]

  1. The number of small-scale fishermen; and
  2. The production rate of fish caught by small-scale fishermen at fishing ports and/or fishermen’s centers.

 

The required data and requirements that must be fulfilled in order for small-scale fishermen to be able to secure industrial and/or local fishermen’s Quotas remain substantially similar to those that apply to regular industrial and/or local fishermen’s Quota applicants.[32] However, instead of securing SIUP and valid taxpayer status, small-scale fishermen are only required to secure fishing-subsector business licenses in addition to a BKP for each fishing vessel.[33]

As industrial and/or local fishermen’s Quotas for small-scale fishermen are issued by the Minister via the relevant governors, the issuance process should take no longer than seven business days from the date of submission of a given application.[34] Moreover, Regulation 28/2023 mandates that the Ministry and the relevant regional governments should provide facilitation to any small-scale fishermen who wish to secure Quotas through the following means:[35]

  1. Provision of supporting facilities;
  2. Technical assistance; and/or
  3. Guidance and counseling.

 

C.   Utilization of Quotas

Generally speaking, Regulation 28/2023 states that Quotas should be utilized during a single Fishing Season and should be limited to annually allocated Quotas that encompass the entirety of fish categories and/or groups of fisheries resources (collectively referred to as “Commodities”) that are going to be caught.[36] Meanwhile, any excess Commodities may be accounted for as a part of the following year’s Quota utilization. However, it should be noted that said excess accounting excludes small-scale fishermen.[37]

In terms of the utilization of Quotas, Regulation 28/2023 sets out certain provisions that apply under certain conditions, as detailed in the table below:[38]

Condition

Applicable Provisions

The amount of fish caught during one Fishing Season has not reached the allocated Quota.

The remainder of the quota may not be accumulated as a part of the following year’s Quota.

The most recent fishing activities are carried out after the end of the relevant Fishing Season.

All fish that are caught should be accounted for as a part of the applicable Fishing Season whenever fish are landed.

The relevant Regional

Fisheries Management Organization (“RFMO”) has established a catch limit for certain types of fish.

The Director-General should reconcile the fish capture data during the ongoing Fishing Season with subsequent landing during the following Fishing Season.

 

D.   Quota Transfers

Pursuant to Regulation 28/2023, non-commercial Quotas are not transferable to any other parties.[39] However, industrial and local fishermen’s Quotas are transferable as additional Quotas to fishing vessels that have utilized their Quotas for the entire Fishing Season and that wish to re-engage in any fishing activities during the ongoing Fishing Season.[40]

As said Quota transfers should be carried out in relation to unutilized Quotas, such additional industrial and/or local fishermen’s Quotas may be secured through either of the following methods:[41]

  1. Transfer of Quotas from fishing vessels located within the same SIUP (“Quota Transfer Method I”); or
  2. Transfer of Quotas from fishing vessels located in different SIUP (“Quota Transfer Method II”).

 

In terms of the above-described Quota transfer methods, certain conditions must be fulfilled in relation to each method, as summarized in the following table:

Conditions

Industrial Quotas

Local Fishermen’s Quotas

Quota Transfer Method

Quota Transfer Method

I[42]

II[43]

I[44]

II[45]

Fishing vessels that transfer and receive Quotas must have DPI that are located in the same Zone.

√

√

 

 

Fishing vessels that transfer and receive Quotas must have DPI that are located in the same Zone and province.

 

 

√

 

Fishing vessels that transfer and receive Quotas must have DPI that are located in the same Zone or located between the Zone and a distance of 12 NM within the same province.

 

 

 

√

Fishing vessels that transfer and receive Quotas must utilize the same fishing equipment.

√

√

√

√

Fishing vessels that transfer and receive Quotas must utilize the same base ports.

√

√

√

√

Fishing vessels that transfer and receive Quotas must have utilized their Quotas for a period of at least two years.

 

√

 

√

Fishing vessels that transfer their Quotas must have used up a minimum of 50% of their ongoing Fishing Season Quotas.

 

√

 

√

 

It should also be noted that the above-described Quota transfers should be implemented based on submitted applications for Quota certificate amendments, while the verification periods for said submissions should be completed within three business days of all of the requirements that apply to said applications being complete and correctly submitted.[46] In terms of said submissions, Regulation 28/2023 sets out the following details:[47]

Aspects

Quota Type

Industrial

Local Fishermen

Parties responsible for issuing approvals/rejections to submitted Quota certificate amendment applications

Director-General

Relevant governor

Form of application submission

Through an app provided by the Ministry

Validity period[48]

Issued Quota certificate amendments will not affect the validity periods of any originally issued Quota certificates.

Imposition of PNBP[49]

The securing of Quota transfers through Quota Transfer Method I is processed free of charge, the securing of Quota transfers through Quota Transfer Method II will be subject to PNBP in accordance with relevant laws and regulations.

 

E.   Reporting Obligations

Regulation 28/2023 obliges all parties that have utilized Quotas to submit business activity reports on their Quota utilization. Submitting parties may differ depending on the utilized Quota. In summary, Regulation 28/2023 states that the following parties are responsible for the submission and receipt of said reports:[50]

Reporting Parties

Utilized Quota

Maximum Submission Deadline

Authority

Individuals

Industrial

31 January of the following year

Director-General

Individuals, central and regional governments

Non-commercial beyond 12 NM

Individuals

Local fishermen

Relevant governor

Individuals, central and regional governments

Non-commercial up to 12 NM

 

Meanwhile, in terms of the minimum information that must be set out in the above-described reports, Regulation 28/2023 details the following:

Information

Quota Type

Industrial and Local Fishermen[51]

Non-Commercial[52]

Total Quota received during one Fishing Season

√

√

Total amount of Quota used during one Fishing Season

√

√

Information on any Quota transfers that have been completed (e.g. names of Vessels, Zones and SIUP holders)

√

 

Distribution of caught fish

√

 

Amount of retribution or PNBP that has been paid

√

√

 

II.  Determinations of DPI

According to Regulation 11/2023, DPI are classified into two forms, one being regular DPI that are designated for all fishing activities and the other being restricted DPI that are only designated for certain sizes of fishing vessels, types of equipment and/or periods.[53] Regulation 28/2023 sets out further details of the latter forms of DPI and affirms that said areas will be determined by the Minister based on certain fishing conditions and restrictions, as summarized in the following table:

Fishing Conditions[54]

Restrictions[55]

Encompass:

  1. Fish resources (i.e. fish spawning and/or nursery locations and declining fish resource stocks);
  2. Environmental fish resources (i.e. environmental pollution or damage caused by either natural or human factors);
  3. Socioeconomic factors relating to fisheries (i.e. fishermen’s welfare levels, customs, local cultural conditions, local wisdom and/or fishermen-related conflicts); and/or
  4. Fisheries governance (i.e. fish management plans, fish utilization strategies and/or compliance with fisheries-related regulatory frameworks).

Encompass:

  1. Specific regions/coordinates;
  2. Certain Vessels;
  3. Certain business scales;
  4. Certain fishermen and/or community groups;
  5. Certain periods;
  6. Certain fishing equipment; and/or
  7. Certain sizes and/or types of fish.

 

In terms of their utilization, Regulation 28/2023 states that restricted DPI may only be utilized by certain specific parties, as follows:[56]

  1. Small fishermen; and/or
  2. Any individuals, central and regional governments that engage in non-commercial activities.

 

III. Transshipments

Matters relating to transshipments were originally introduced under the Appendix to Regulation 10/2021. Said framework stated that Vessels were permitted to engage in transshipments in compliance with RFMO regulations (from the high seas to base ports) or other international conventions (that apply within the Pacific and/or Indian Oceans).[57]

These types of legal instruments no longer feature under the new framework of Regulation 11/2023. However, Regulation 11/2023 clearly defines transshipments as activities that involve the transfer of caught fish from fishing vessels to fish transportation vessels.[58] Moreover, said regulation mandates that any parties that engage in transshipments must comply with the following requirements:[59]

Transshipment Requirements

Vessel Type

Fishing

Fish Transportation

Must utilize tuna longlines and tuna hand lines

√

 

Must be a part of a single business units (i.e. as included under single fisheries permits)

√

√

 

It is important to note that the above-described transshipment requirements have been enforced since 1 January 2023 for Vessels that have secured fishing and fish transportation subsector business licenses.[60] Moreover, Vessels must fulfill various obligations whenever they engage in transshipments in accordance with their operational areas, as detailed in the following table:

Transshipments in WPPNRI Other Than RFMO Competence or Convention Areas[61]

Obligations

Vessel Type

Fishing

Fish Transportation

Vessel owners must be willing to accept the presence of Vessel monitoring officers (“Monitoring Officers”) on board their Vessels.

√

√

Vessel captains must draft transshipment reports.

√

√

Vessel captains must submit transshipment reports.

 

√

Vessel captains must inform the relevant fisheries authorities of their transshipment plans upon securing shipment approvals.

 

√

 

Transshipments in RFMO Competence or Convention Areas[62]

Obligations

Vessel Type

Fishing

Fish Transportation

Transshipments must be overseen by onboard Monitoring Officers through the RFMO or onboard other Vessels that are up to RFMO standards.

√

√

Must be listed on the same RFMO Vessel list.

√

√

Vessel owners or captains must inform the Director-General and relevant fisheries authorities of their transshipment plans in writing at least 48 hours prior to the commencement of the relevant transshipments.

√

 

Vessel owners or captains must inform the Director-General and relevant fisheries authorities of their transshipment plans in writing at least 72 hours prior to the commencement of the relevant transshipments.

 

√

Vessel captains must draw up transshipment reports that are subsequently be signed by relevant parties

√

 

Vessel owner or captains must submit their transshipment plans electronically to the relevant fisheries authorities within five business days of the completion of the relevant transshipments.

√

 

Vessel captains must submit their transshipment plans electronically to the Director-General, relevant fisheries authorities and relevant RFMO within 24 hours of the completion of the relevant transshipments.

 

√

 

It is important to note that any failure to comply with the above-described obligations will be categorized as a violation of business licensing obligations and will thus be subject to the imposition of administrative sanctions in accordance with the relevant laws and regulations.[63]

 

IV. Determinations of Base Ports

Based on the above discussion, it can be concluded that base ports are essential in order to adequately measure fishing activities, particularly in terms of the various locations in which Vessels are harbored and fish are landed.  Pursuant to Regulation 11/2023, base ports within each Zone are to be determined by the Minister and comprise the following classifications:[64]

  1. Fishing ports that are built and/or operated by the central or regional government (“Ports I”);
  2. Fishing ports that are not built and/or operated by the central or regional government (“Ports II”); and
  3. Public ports (“Ports III”).

 

In order to be classified as one of the above-described base-port types, Regulation 28/2023 has further clarified that prospective base ports must fulfill certain requirements. In terms of Ports I specifically, however, Regulation 28/2023 also states that determinations of said ports should be decided based on submitted written applications.[65] The overall applicable requirements that have to be met in order to be classified as a base port are detailed in the following table:[66]

Requirements

Base-Port Classification

I

II

III

Must be listed in the National Fishing Port Masterplan

√

√

 

Must have been determined as a fishing port

 

√

 

Must have certain facilities in place, including: 1) Main facilities (e.g. land, pier, pool and so forth); 2) Functional facilities (e.g. administrative office, fish markets and basic electrical and plumbing utilities); and 3) Supporting facilities (e.g. restrooms)

√

√

 

Must have been approved by the Ministry of Transportation

 

 

√

 

Base-port determinations will be carried out by the Minister based on verification results that address the fulfillment of the above-listed requirements and that are submitted by the Director-General.[67] Regulation 28/2023 also states that several mandates apply to certain parties in relation to base ports and must be fulfilled, as detailed in the table below:[68]

Mandated Parties

Mandate

Ministry and relevant regional governments

Facilitate business licensing and the development of Ports I

Engage in cooperation for the management and development of Ports II

Ports II owners

Establish and develop downstream industries (e.g. fish management, fish marketing and other supporting businesses)

Involve local communities during the establishment, development and operation of fishing ports

Individuals who have been granted Quotas

May establish and/or develop downstream industries at base ports, as elaborated upon above

 

V.   Fish Landings

In terms of fish landings (pendaratan ikan), Regulation 28/2023 mandates that Vessels should implement the following matters:[69]

Vessel Type

Mandate

Maximum Number of Base Ports

Fishing

Land any caught fish at determined base ports that are located in Zones

Five base ports located in Zones

Fish transportation

Land any caught fish at the same base port as the relevant fishing vessels

Five base ports located in Zones in accordance with the relevant fishing vessel’s fishing Zone

 

While the above mandate seems straightforward enough, Regulation 28/2023 also sets out a number of alternative landing destinations that may be used if various conditions lead to any inability to fulfill the above mandates. Said alternatives break down as follows:

Reason for Fish Landing Mandate Failure

Alternative Landing Destination

Other Remarks

Emergency conditions that may result in the degradation of fish quality[70]

Other base ports that have been determined by the Minister

Upon arriving at the alternative base port, the Vessel captain or owner should submit a written request to the relevant port authority regarding the landing of their fish cargo.

The absence of base ports in the relevant Zone[71]

Base ports located in the nearest Zones

Vessels should be granted relevant business licenses for any alternative base ports that are utilized.[72]

The relevant base ports are in a state of Vessel overcapacity[73]

-

Base port harbors and/or pools may not be utilized for the harboring of Vessels of certain sizes[74]

-

 

In terms of emergency fish landings specifically, as elaborated upon above, Regulation 28/2023 affirms that required written requests should be reviewed within 24 hours of their being received by the relevant port authorities, while the relevant Vessel captains or owners must first secure the following documents:[75]

Documents

Remarks

Shipping approval

Statement letter

Issued by the Vessel captain

Stipulates that fish quality degradation may occur if the fish cargo is not landed.

Stipulates poor weather conditions, as complemented by a weather situation report issued by the Meteorology, Climatology and Geophysical Agency (Badan Meteorologi, Klimatologi, dan Geofisika/BMKG).

Issued by a Vessel repair station/service provider

Stipulates that the Vessel in question has sustained damage.

 

It should also be noted that the above-described landing mandates exempt small-scale fishermen, meaning that fish landings in this case may be carried out in the relevant fishermen’s centers.[76] Moreover, any cooperatives that work within the fisheries sector (on behalf of their members) and small-scale fishermen that are not part of said cooperatives are required to report the occurrence of each fish landing through an app that has been provided by the Ministry.[77]

 

VI. Transitional Provisions and Time-Sensitive Obligations

Upon its enforcement, certain permits, goods or activities will remain valid or applicable until a certain issuance or actions have taken place, as detailed in the table below:[78]

Permits, Goods or Activities

Validity Period

SIUP issued prior to the enforcement of Regulation 28/2023

These will remain valid until new SIUPs are issued based on Regulation 28/2023.

Fishing and fish transportation subsector business licenses issued prior to the enforcement of Regulation 28/2023

Thses will remain valid until new business licenses are issued based on Regulation 28/2023.

Fishing activities that are undertaken by small-scale fishermen and that conform to provisions in place prior to the enforcement of Regulation 28/2023

Said fishing activities may continue to be carried out until the issuance of industrial and/or local fishermen’s Quotas.

Caught fish that have been landed after the issuance of Quota certificates

Should initially be counted as part of the relevant Quota utilization.

Vessels that have secured relevant subsector business licenses and/or registrations but which have yet to secure Vessel Procurement Approvals (Persetujuan Pengadaan Kapal Perikanan - “PPKP”) and/or BKP

The relevant governor should issue the relevant PPKP and/or BKP without any application basis by referring to the available data while no administrative sanctions should be imposed.

 

In addition to the above-mentioned matters, certain mandates that have been set under the framework of Regulation 28/2023 are time-sensitive in nature and must be complied with within certain timeframes. The following table sets out details of these time-sensitive obligations:

Parties

Mandate

Deadline or Applicability Period

Any individuals that secured SIUP prior to the enforcement of Regulation 28/2023[79]

Must submit an SIUP amendment application to the Minister or relevant governor

31 December 2023

Any individuals who secured fishing and fish transportation subsector business licenses prior to the enforcement of Regulation 28/2023[80]

Must submit an application for the amendment of the relevant business licensing to the Minister or relevant governor

Fish transportation vessels that transport fish from DPI and that secured fish transportation subsector business licenses prior to the enforcement of Regulation 28/2023[81]

May be granted four base ports in the WPPNRI and one base port in accordance with the relevant business or residence domiciles

31 December 2024

Small-scale fishermen who have yet to secure the required industrial and/or local fishermen’s Quotas[82]

May alternatively utilize the following documents:

  1. Vessel registration marks for small-scale fishermen;
  2. Maritime and fisheries business and supporting business cards; or
  3. Statement letters issued by village heads affirming that the individuals in question are indeed small-scale fishermen, complemented by official Citizenship Identification Numbers (Nomor Induk Kependudukan/NIK).

31 December 2025

 

Conclusion

The above analysis demonstrates that the various measured fishing aspects that are addressed under Regulation 28/2023 deal with a number of highly important matters that should support Indonesia’s efforts towards establishing a sustainable fisheries sector. Moreover, the introduction of Quotas, specifically for small-scale fishermen, ultimately represents a form of recognition regarding the rights of small-scale fishermen across the country who have traditionally engaged in fishing activities over many generations, particularly such communities that are operating within restricted DPI.[83] In essence, all fishermen and Vessel operators, regardless of the scales of their business operations, should familiarize themselves with the relevant applicable mandates and rights that are addressed under the new framework of Regulation 28/2023, particularly if said parties engage in measured fishing activities within Zones that are located across the nation. (KS)

 

 

 

 


[1] Institut Teknologi Bandung, “Indonesia Has the Potential to Become the Largest Aquaculture Country in the World”, as accessed through: https://www.sbm.itb.ac.id/2023/04/27/indonesia-has-the-potential-to-become-the-largest-aquaculture-country-in-the-world/ on 15 September 2023.

[2] Bisnis.com, “Kekayaan Laut Indonesia Hampir Rp20.000 Triliun, KKP Beri Penjelasan”, as accessed through: https://ekonomi.bisnis.com/read/20220729/99/1560541/kekayaan-laut-indonesia-hampir-rp20000-triliun-kkp-beri-penjelasan on 15 September 2023.

[3] Data Indonesia, “Ada 1,27 Juta Nelayan di Indonesia pada 2022”, as accessed through: https://dataindonesia.id/sektor-riil/detail/ada-127-juta-nelayan-di-indonesia-pada-2022 on 15 September 2023.

[4] Kementerian Perencanaan Pembangunan Nasional/Badan Perencanaan Pembangunan Nasional, “Bappenas Pastikan Blue Economy Jadi Prioritas Kerja Sama Negara ASEAN”, as accessed through: https://www.bappenas.go.id/id/berita/bappenas-pastikan-blue-economy-jadi-prioritas-kerja-sama-negara-asean-1DeBg on 15 September 2023.

[5] For a broader perspective on Indonesian efforts to implement the blue economy, see the following edition of ILD: “Development of Indonesia's Blue Economy: Unlocking Untapped Potential”.

[6] Regulation 11/2023 was briefly discussed in Indonesian Legal Brief (“ILB”) No. 4593.

[7] Art. 1 (1), Regulation 11/2023.

[8] Recitals and Art. 116, Regulation 28/2023.

[9] Art. 115, Regulation 28/2023.

[10] Regulation 33/2021 was briefly discussed in ILB No. 4221.

[11] For more on the available Zones, see the following edition of ILD: “Development of Indonesia's Blue Economy: Unlocking Untapped Potential”.

[12] Art. 6, Regulation 11/2023.

[13] Art. 7, Regulation 11/2023.

[14] Art. 8, Regulation 11/2023.

[15] Art. 9, Regulation 11/2023.

[16] Art. 10, Regulation 11/2023.

[17] Art. 5, Regulation 28/2023.

[18] Art. 6, Regulation 28/2023.

[19] Arts. 9 - 11, Regulation 28/2023.

[20] Art. 12 (6), Regulation 28/2023.

[21] Art. 12 (2 - 3), Regulation 28/2023.

[22] Art. 12 (4), Regulation 28/2023.

[23] Arts. 12 (5) and 112, Regulation 28/2023.

[24] Art. 13, Regulation 28/2023.

[25] Arts. 18 and 25, Regulation 28/2023.

[26] Arts. 19 and 26, Regulation 28/2023.

[27] Arts. 15 - 17, Regulation 28/2023.

[28] Arts. 21 - 24, Regulation 28/2023.

[29] Arts. 35 - 37, Regulation 28/2023.

[30] Art. 1 (10), Regulation 28/2023.

[31] Art. 8, Regulation 28/2023.

[32] Compare Art. 30 with Arts. 15 and 22, Regulation 28/2023.

[33] Ibid.

[34] Art. 31, Regulation 28/2023.

[35] Art. 33, Regulation 28/2023.

[36] Art. 39 (1 - 3), Regulation 28/2023.

[37] Art. 39 (4), Regulation 28/2023.

[38] Art. 40, Regulation 28/2023.

[39] Art. 59, Regulation 28/2023.

[40] Arts. 41 (1 - 2) and 50 (1 - 2), Regulation 28/2023.

[41] Arts. 41 (3 - 4) and 50 (3 - 4), Regulation 28/2023.

[42] Art. 42, Regulation 28/2023.

[43] Art. 46 (1), Regulation 28/2023.

[44] Art. 51, Regulation 28/2023.

[45] Art. 55 (1), Regulation 28/2023.

[46] Arts. 43, 47, 52 and 56, Regulation 28/2023.

[47] Ibid.

[48] Arts. 44, 48, 53 and 57, Regulation 28/2023.

[49] Arts. 45, 49, 54 and 58, Regulation 28/2023.

[50] Arts. 75 and 78, Regulation 28/2023.

[51] Arts. 75 (4) and 78 (4), Regulation 28/2023.

[52] Arts. 75 (5) and 78 (5), Regulation 28/2023.

[53] Art. 1 (5), Regulation 11/2023 and Art. 1 (6), Regulation 28/2023.

[54] Art. 81 (2), Regulation 28/2023.

[55] Art. 81 (3), Regulation 28/2023.

[56] Art. 82, Regulation 28/2023.

[57] Appendix II, Regulation 10/2021, pp.919 - 922.

[58] Elucidation to Art. 22 (1), Regulation 11/2023.

[59] Art. 22 and its elucidation, Regulation 11/2023.

[60] Art. 111, Regulation 28/2023.

[61] Art. 84, Regulation 28/2023.

[62] Art. 85, Regulation 28/2023.

[63] Art. 86, Regulation 28/2023.

[64] Art. 20, Regulation 11/2023.

[65] Art. 88 (2 - 4), Regulation 11/2023.

[66] Art. 88 (1) and (5), Regulation 28/2023.

[67] Art. 89, Regulation 28/2023.

[68] Art. 90, Regulation 28/2023.

[69] Art. 91, Regulation 28/2023.

[70] Art. 92, Regulation 28/2023.

[71] Art. 94 (1), Regulation 28/2023.

[72] Art. 94 (3), Regulation 28/2023.

[73] Art. 94 (2), Regulation 28/2023.

[74] Ibid.

[75] Art. 92 (4 - 7), Regulation 28/2023.

[76] Art. 95 (1), Regulation 28/2023.

[77] Art. 95 (2 - 3), Regulation 28/2023.

[78] Art. 102, Regulation 28/2023.

[79] Art. 103, Regulation 28/2023.

[80] Arts. 105 - 106, Regulation 28/2023.

[81] Art. 110, Regulation 28/2023.

[82] Art. 114, Regulation 28/2023.

[83] Detik.com, “Kemerdekaan, Perlindungan Nelayan Kecil & Penangkapan Ikan Terukur”, as accessed through: https://news.detik.com/kolom/d-6882704/kemerdekaan-perlindungan-nelayan-kecil--penangkapan-ikan-terukur on 15 September 2023.

...

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