Indonesia

In progress

Over the last decade, the Indonesian government has made meaningful strides in implementing a risk management system for controlling and inspecting exports of fish and fishery products. But work remains to be done for imports, which lack an adequate risk management system.

As a result, the Fish Quarantine Inspection Agency (FQIA) physically inspects 100% of fish imports that cross into Indonesia and samples 20% of containers for testing to assure safety and quality. However, this approach stretches limited government resources and diverts attention from shipments that carry legitimate risk and deserve greater scrutiny, ultimately putting consumer safety at risk. It also adds significant time and costs for importers, almost one-fifth of which are micro, small, and medium enterprises (MSMEs).

For comparison, roughly 1% of fish imports that cross into the EU are subject to such testing, highlighting the potential to improve how these shipments are controlled.

What we are doing

The Alliance, through its implementing partner Trade Facilitation Office (TFO) Canada, is supporting the Indonesian government to strengthen and enhance its existing risk management system for controlling imports of fish and fishery products.

By doing so, FQIA will benefit from a more comprehensive approach to monitoring and controlling imports, ultimately reducing the percentage of shipments deemed high-risk and subject to inspection. Also, new inspection strategies, such as pre-border and post-border checks, will further reduce the need for at-the-border interventions and expedite the overall clearance process.

During the design phase of the project, Indonesian fish importers and exporters – including MSMEs led by women – and fish business associations identified their key trade challenges and confirmed their support for the project at a public-private dialogue marking the end of the scoping process. Businesses will continue to work alongside their government counterparts during project implementation, participating in a public-private Project Steering Committee, thereby ensuring that the project, as delivered, will be a joint win for both sectors.

Impacts

Improving the risk management system for how fish and fishery product imports are controlled and inspected is expected to:

• reduce storage and laboratory testing costs for importers
• reduce the time spent waiting for imports to be cleared and released, which enables fish and fishery products to go to market faster – and fresher
• enhance food safety by introducing more effective lab testing, thanks to a lower volume of testing initiated

In addition to importers, others involved in the value chain will save time and money, including fish business operators and processors like canning businesses and local fishery wholesalers and retailers, many of which are also MSMEs.

Measurement

The Alliance will use its Total Transport and Logistics Cost (TTLC) methodology, which measures both direct and indirect transport and logistics costs, to conduct a baseline study after FQIA issues its enhanced risk management guidelines, which marks the project’s first major milestone. A comprehensive impact assessment will be conducted at the project’s conclusion.

Timeline

The project is expected to take 21 months.