A shortage of fish has forced around 40 per cent of fish canneries to stop production.
The Indonesian Fishery Community (MPN) informed last week that the supply of fresh fish is only 30 per cent of the installed processing capacity of the country’s fish canning industry.
MPN, that groups all fishery related associations including associations of fishermen and fish canning companies, blamed domination of foreign fishing
vessels for the shortage in supply of fresh fish in the country.
MPN members said foreign fishing vessels send most of their catch of tuna and other species to their respective countries of destination, resulting in a supply shortage for Indonesia.
In addition, fish canning factories in the country are charged with a 15 per cent value added tax, whereas the import duty on canned fish is only 5 per cent, according to MPN.
MPN chairman R.P. Poernomo said the closure of 40 per cent of 30 fish canning factories in the country will reduce the country's export earning from the sector to around US$80 million a year, down from the expected US$120 million.