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S. Muranto
Directorate for Extension
Directorate General of Fisheries, Jakarta


Training and extension on shrimp culture is very much needed to support the tambak farmers and operators in improving their operations. In fiscal year 1989/1990, the Government has scheduled some training programmes, consisting of backyard-scale hatchery operation, pests and diseases, handling and processing of shrimps, fish quality control, and tambak techniques, which will be participated in by the PPS, PPL, and PPUP. The institutions responsible for these programmes are BLPP, BPLP, BKPI, and the AUP. Extension activities are implemented through the Provincial Fisheries Office and are executed in the field by the PPL with the backstopping of the PPS and the UPBAP, BBAP, Jepara and BALITDITA are also expected to backstop the UPBAP as a resource centre for tambak shrimp culture. Other methods of disseminating technology are through the Training and Visit system, farmers' courses, demonstration and use of broadcast media such as RRI and TVRI, Dialogues, Field Day, Results demonstration, Market Transaction meetings and Inter-service meetings.


1.1 Background

The government at present is making a sustained effort to increase the non-oil export. One of the non-oil export commodities consists of fishery products. According to available data, the export of fishery products increased from 88,365 tons with a value of US$ 257.048 million in 1983 to 140,378 tons with a value of US$ 475.524 million in 1987, or at an average of 18.1% per year by value and for shrimp alone from 26,166 tons with a value at US$ 194.447 million in 1983 to 44,267 tons valued at US$ 352.435 million in 1987.

Within the framework of supplying the world shrimp requirement which is continuously on the rise, the government has correspondingly endeavored to increase shrimp production through shrimp culture. The shrimp culture industry in Indonesia is still wide open because out of a potential tambak area of 840,000 ha, only 249,000 ha has been utilized. It is hoped that exploiting the said potentials will open new fields of employment and other industries to support it.

The fairly high market price of shrimp has aroused interest among tambak farmers to continuously increase their production efforts and on the part of the private sector to invest their capital in shrimp culture. This situation requires support in order to succeed, which among others include training and extension activities in shrimp culture.

1.2 Objectives and Expected Results

1.2.1 Objectives

a. Long-term objectives

b. Short-term objectives

To improve the knowledge, skills and attitude of extension workers in:

1.2.2 Expected results

The training and extension activities in shrimp culture are expected to result in the following:


2.1 Development Approach

There is a total of 840,000 ha of potential tambak areas in Indonesia distributed all over the country. Up to 1987 only 249,000 ha has been developed. Regions which are already fairly advanced in tambak culture are West Java, Central Java, East Java, Aceh and South Sulawesi, while other areas in general have newly started. In this connection, tambak culture is being developed using the following methods:

In tambak culture intensification the tambak farmers are urged to apply the Sapta Usaha Pertambakan (Seven Fundamentals for Tambak Operation) which are as follows:

The level of technology to be applied shall consist of the following:

2.2 INTAM Programme

To develop tambak culture, the government has instituted and is at present implementing the INTAM (Intensifikasi Tambak) programme which is being extended to 11 provinces: West Java, Central Java, East Java, Aceh, South Sulawesi, South Kalimantan, East Kalimantan, West Nusa Tenggara, Southeast Sulawesi, Bali and Lampung. The INTAM programme has two aspects:

It appears that in the implementation of INTAM, particularly INTAM KREDIT, the realization has been very far from the set target, although the trend is improving from year to year. For INTAM SWADANA, although initial results were not encouraging, the succeeding years have shown very encouraging achievement so that the realization has actually exceeded the target (223.3% realization in 1987/1988). This fact indicates the growing interest of tambak farmers in applying more advanced technology for shrimp culture.

2.3 Problems in Tambak/Shrimp Culture

The usual problems faced by tambak or shrimp farmers in pursuing their activities are:

2.4 Foreign-assisted Projects

Tambak and shrimp culture development activities are being extended by the Directorate General of Fisheries through several internationally funded projects, as follows:


3.1 Training Programme

3.1.1 Training activities

For budget year 1989/1990 the following training has already been planned:

  1. Backyard-scale shrimp hatchery techniques for PPS, 1x.
  2. Pests and diseases of fish and shrimps for PPS, 1x.
  3. Handling and processing of shrimps (preharvest) produced from tambak culture for PPS, 1x.
  4. Fish quality testing for quality guidance workers, 1x.
  5. Backyard-scale shrimp hatchery techniques for PPL/PPUP, 2x.
  6. Tambak shrimp culture techniques for PPL/PPUP, 4 locations, 2x each location.
  7. Pests and diseases along with feeds for shrimps/fish for PPL/PPUP, 12 locations, 1x each location.
  8. Tambak techniques training for Block Managers, 1x.
  9. Post-baccalaureate on shrimp culture, 2 persons.
  10. Backyard-scale shrimp hatchery for contactfarmers/fishermen, 7 locations, 1x each location.
  11. Handling and processing of shrimps (preharvest) produced from tambak culture for contactfarmers/fishermen, 9 locations, 1x each location.

3.1.2 Responsibility and execution of training

The responsibility for carrying out the training programme mentioned above lies with BLPP, BPLP, BKPI and DIKLAT AUP.

The four institutes mentioned above will serve as the “arm” of the BADAN DIKLATLUH in the execution of the said training programme in consultation with the Directorate General of Fisheries for the training materials.

3.1.3 Trainees and duration

Trainees shall consist of extension workers (PPS/PPL/PPUP) and contact-farmers who are domiciled in the province where the training is going to be held except for training which are national in nature, in which the trainees will come from the whole of Indonesia under the responsibility of the BPLP Ciawi and DIKLAT AUP.

Meanwhile, the training duration will mostly last for 30 days with some only for 15 days.

3.2 Extension Programme

3.2.1 Organization

The extension activities shall be conducted through the extension arm of the Provincial Fisheries Offices. Field extension shall be carried out by the PPL under the supervision of the BPP and technical guidance of the PPS and UPBAP following the directives from the Directorate General of Fisheries.

In order to improve the technical capability of the UPBAP in developing the BPP/PPL, BBAP Jepara shall intensively develop their capabilities. UPBAP primarily functions to develop extension materials in the form of brackishwater aquaculture/shrimp technology that needs to be applied by or to be taught to tambak shrimp farmers through BPP/PPL.

It is expected that UPBAP shall be developed intensively by BBAP Jepara in cooperation with the BALITDITA of the agricultural research agency. BBAP Jepara is also expected to serve as the resource centre for tambak shrimp culture technology within the framework of developing tambak shrimp culture the which is generally under the framework of developing the Sapta Usaha Pertambakan.

UPBAP as the centre for developing brackishwater/shrimp culture techniques in the regions shall have their capability raised. The lack of university graduates in fisheries, the lack of equipment and supplies along with lack of operating funds will be given attention so that the development of extension material in the form of brackishwater aquaculture/shrimp culture technology and the execution of brackishwater/shrimp aquaculture extension can proceed as expected.

3.2.2 Development of the extension force

The extension force (PPS, PPUP, PPL), who shall develop the tambak/shrimp farmers shall in turn be developed and trained so that they shall really master tambak/shrimp culture techniques which is based on the Sapta Usaha Pertambakan, and be capable of applying them so that the production target set shall be reached.

The duties of the PPL under the guidance of PPS/PPUP under the framework of tambak shrimp culture development are:

  1. To teach tambak/shrimp culture techniques according to the Sapta Usaha Pertambakan.
  2. To assist in the inventory and to study the problems and conditions in the tambak areas within their localities.
  3. To develop groups and self-help among tambak shrimp farmers.
  4. To assist in the supervision of production inputs required such as shrimp fry, pesticides, fertilizers and other similar materials.

3.2.3 Extension inputs/tools

One factor that obstructs which is felt greatly in the execution of extension activities is the lack of means for mobility in the form of transportation (such as motorcycles) both for PPL as well as for PPS/PPUP. Extension work can proceed smoothly if the PPS/PPUP/PPL are always with the tambak/shrimp farmers.

In addition in order to assist the tambak/shrimp farmers in becoming familiar with the pond conditions, the BBP/PPL needs to be equipped with measuring instruments such as pH meter and salinometer.

The said inputs/tools mentioned above shall be provided step by step based upon the capability of the government budget to provide them.

3.2.4 Tambak/shrimp farmers group

The formation of groups and group leaders for tambak groups and contact tambak farmers shall be done according to the directive of the Department of Agriculture. tambak/shrimp farmer groups and contact tambak/shrimp farmers shall be developed intensively through meetings between the groups and contactfarmers with the PPL and PPS.

The workplan of the group shall promptly be formulated by the groups by consensus under the guidance of the PPL/PPS, including their supervision. In this regard, the PPL/PPS shall act as advisers, and shall not be directly involved in the affairs of the groups/contact farmers, so that the groups/contact farmers will rapidly mature in steering their operation. The PPL/PPS shall provide guidance primarily on the method of making a plan of activities, method of discussing a problem, method of reaching a decision together and method of implementing the said activities together.

3.2.5 Extension methods

The extension methods to be applied for the extensions of tambak shrimp culture are as follows:

  1. Training and Visit System
  2. Farmers' Course
  3. Demonstration
  4. Broadcast through RRI/TVRI
  5. Dialogue (between government officials and farmers)
  6. Field Day
  7. Results Demonstration
  8. Market Transaction Meeting
  9. Inter-service Meeting (among government agencies).

Demonstration shall preferably be conducted in the tambak/shrimp farmers field together with the tambak/shrimp farmers on the new technology being proposed to the farmers. The said demonstration preferably shall begin with a demonstration of results followed by a demonstration of the method.


Fuad Cholik
Coastal Aquaculture Research Centre, Maros, South Sulawesi


In shrimp culture, both in fry production and grow-out, some problems still exist. The research programme of BALITDITA has been specifically addressed to answer these problems, although shrimps is only one aspect of the Centre's total programme. Shrimpculture research includes the following activities:

The research activities will be conducted in the laboratory, experimental ponds or in various location using tambaks owned by farmers.


Shrimp has already become the mainstay of Indonesian fisheries export since PELITA IV. Its contribution to the fisheries export every year ranges from about 33 to 37 percent of the total fisheries export value. Its fairly large role among others, is due to the success of the government in stimulating the private sector in the development of intensive shrimp culture by making available technology, inputs and by facilitating implementation. It is estimated that hundreds of billions of rupiah have already been invested in shrimp culture ponds and hatcheries.

The shrimp industry is also rapidly developing in Thailand, Philippines, Taiwan, China, other parts of Asia along with Latin America. With such development, shrimp has become a world commodity, so that the shrimp trade is affected directly by global economic flareups. The fluctuation of Indonesian shrimp prices is due to the effect of the shrimp culture activities and success in other countries.

When viewed from the technological aspect, shrimp culture is already quite established. From simple to advanced technology, all are ready to use. In addition, support technology such as hatchery, are also ready and can be considered capable of producing the required number of fry.

Looking at the various aspects mentioned above, in order to support shrimp industry development at this time to make it capable of competing in foreign markets, it is necessary to have the technology that is capable of increasing the productivity and production efficiency, so that it will remain as attractive as it is now. The shrimp research programme of the BALITDITA has been targeted among others towards diversification, increased productivity and efficiency in the shrimp culture industry.


2.1 Shrimp Grow-out Industry

The scope of the shrimp of the shrimp culture industry covers branches of the grow-out in brackishwater ponds and upstream industries such as fry production (hatchery, shrimp fry and spawner collection), feeds, equipment and chemicals along with downstream industry such processing or cold storage. The movement of this industry can be considered to be uni-directional, that is from upstream to downstream. With that, every obstacle facing a particular component upstream can become an obstacle to the movement or development of the other components.

2.1.1 Status

Shrimp culture in Indonesia is conducted only in brackishwater ponds or tambak. Culture in floating cages or in pens in river mouths or in the sea such as is done in Thailand is still at the research or field test stage, and is being done by the private sector. The tambak area in Indonesia at this time totals 250,000 ha (Fisheries Statistics, 1988). From the said area, this writer estimates that around 60 per cent is stocked with shrimps both monoculture and in polyculture with milkfish.

The Indonesian tambak system is generally widespread in the provinces of Aceh, West Java, Central Java, East Java and South Sulawesi. Intensive ponds are found primarily in Aceh, North Sumatra, Lampung, West Java, Central Java, East Java and South Sulawesi. Limited tambak areas can also be found in Southeast Sulawesi, West Nusa Tenggara and East Kalimantan.

The said tambaks are generally (95%) still operated extensively, more specifically, as polyculture ponds. The productivity is relatively low ranging from 100 to 300 kg per ha per year. On the other hand, intensive and semi-intensive ponds are not yet widespread, but are already yielding as high as 22 tons per ha per year (Cholik et al, 1989) with an average of 10 tons per ha per year. Nevertheless the contribution of tambak-reared shrimps to total shrimp production is in creasing every year. In 1983, 1985 and 1987, farmed shrimps contributed 24.9%, 33.5% and 38.2% respectively.

2.1.2 Problems encountered

In brackishwater aquaculture, specially shrimp culture, it is felt that the species that are being cultured are too limited. From 18 species of shrimps that are already being raised in some countries, and have important economic value, at least 5 species are found in Indonesian waters, these are P. monodon, P. semisulca tus, P. merguiensis, P. indicus, and Metape naeus ensis. The five species mentioned are harvested from Indonesian tambaks as wild shrimps, except for P. monodon, which is the only species of shrimp that is cultured in this country.

Dependence on the single species mentioned certainly does not give us any advantage in the world market. Aside from making our market narrow, it also weakens the bargaining position of our exporters. It is well known that the major market for tiger shrimp is Japan (apparently this species is popular only in Japan and not in the American and European market). Furthermore, dependence on this single species makes the shrimp producers sensitive to any calamity. Any disease epidemic, for example, can totally destroy the industry.

Based on the above-mentioned considerations, the BALITDITA has included in its research programme, the culture of white shrimps (P. merguiensis) and green tiger shrimp (P.semisulca tus). Research on the fry production of these species has been carried out since 1971 and has been fairly successful (Cholik, 1973). Spawners of these species are more readily available than those of P. monodon. In the sea, gravid shrimps can be encountered anytime and breeds practically the whole year round with a peak during the months leading towards the rainy season, that is August, September and October, and again at the end of the rainy season, that is March and April. Furthermore, gravid white shrimps can also be found in the tambaks. Gravid P. semisulcatus has never been encountered in tambaks but the production of spawners of the said species is very much easier than forP. monodon.

The growing of white shrimps in a tambak has already been done, but generally only at an experimental scale. Research results indicate that the white shrimps can attain an average of 17 grams in 3 months (Mangampa and Pirzan, 1988). On the other hand, previous experiments suggest a stocking density of 40,000 per ha for white shrimps when using extensive technology. Other studies such as the polyculture of white shrimps with tiger shrimps have also been conducted already. The said experiments show that a production of 305 kg white shrimps and 290 kg tiger shrimps per hectare per season can be obtained at a stocking density of 20 shrimps per m3 for each species (Mangampa and Pirzan, 1989). The research also shows that survival appears to be affected by salinity level. A decrease in the salinity level to 10 ppt results in a low survival rate although the growth rate is still normal. On the other hand, an increase in the salinity level above 35 ppt result in high survival rate but low growth rate. Mangampa and Pirzan (1989) also suggested that in order to attain a good rate of growth, salinity of the tambak should range between 30 to 35 ppt.

The above data are merely bits of information when compared to what will be required to formulate a technology package for white shrimps. Other information such as layout, design and construction of tambaks appropriate for white shrimps or green tiger shrimps are not yet available. Whether the design of conventional tambaks for milkfish or tiger shrimps will also be suitable for the two aforementioned species of shrimps is still a question mark since there are differences in the life habits of the various shrimp species. Other than that, water quality parameters required for good survival and growth rates are not yet very well known and still need to be investigated. Furthermore complete feed formulas for intensive culture and supplemental feed for semi-intensive culture have to be avail able. Lastly, harvest and handling techniques also need to be studied as soon as possible.

Although on the average, tambak culture of shrimps can be said to be already successful, in some areas, technical and social constraints cause failures especially if a higher level of technology is applied. Failures are often reported in tambak units using inten- sive technology. Such failures can happen from the very start, that is during the first stocking, or only after one or more successful harvests. The later situation is generally related with the deterioration of the conditions inside the tambak units or of the aquatic environment because the carrying capacity has been exceeded. A tambak environment, which at the start are still suitable for intensive culture, can later deteriorate in quality because of the rapid expansion of intensive farms around it. Differences in yields often happen also within a shrimp farms. Often there are some compartments which rarely yield satisfactory results, although another compartment right next to it gives high production.

Harvest failures because of stunted shrimps are often reported in intensive tambaks. Field surveys indicate that the pond bottom condition (and the worsening quality of the water) is the primary reason for such stunting. Within 2 months after stocking, the pond bottom consists of fine mud that is black and smells rotten. The H2S concentration in the layer of water above it can become higher than 1 ppm, which means it has exceeded the treshold level and can interfere with the living condition of the shrimp. The deterioration of the pond condition can worsen to the point that the shrimps become sickly and prone to diseases. Pond soil deterioration happens among others because of poor construction, overfeeding, or poor feed quality. Tambak operators often make a connection between stunted growth and the manner by which the fry were produced in the hatchery. Blame is laid especially on fry coming from spawners which have already spawned more than two times.

Various causes of shrimp diseases are already known such as MBV, bacteria, fungus, protozoa and others, as are ways of treating them. However at the tambak production scale, the known treatments are not yet practiced.

One social constraint which is apparent is security. Robbery and poaching of shrimps which are to be harvested are often reported in newspapers. Beside this, other social constraints are connected with the lack of skilled manpower. Economic constraints which have been felt most during this period are the continuing decrease of shrimp prices and the increasing cost of feed. This situation is worsened by the still low quality of tambak shrimps in terms of size, freshness and color.

2.2 Shrimp Hatchery Industry

The success in shrimp culture as described above is closely related to the success of the shrimp fry industry, specifically the hatchery. At this time, the number of hatcheries in Indone sia has been listed as over 100 units with the greatest concen tration in Java and South Sulawesi.

Generally, hatchery productivity is already fairly constant, especially those manned by Taiwanese technicians. In 1988 hatchery produced reached 1.5 billion shrimp fry. When compared with requirement, the said production level is not yet enough. Al though that is the case, often times during certain months there is an excess production of fry so that the price of fry goes down to a fairly low level. It is often reported that the price can go down as low as Rp. 8 per fry.

The primary constraint that is encountered, among others, is the supply of spawners. Because the spawners used comes from the sea, its availability depends on the season. Because of this, it is not surprising if price of spawners can be relatively high, often times reaching Rp. 70,000 to Rp. 80,000 per piece. Aside from the number, the quality of spawner is not yet constant. This is because the handling during capture, holding and trans port is still not satisfactory.

Other technical constraints in the shrimp fry production industry are diseases in the hatchery, specially those infecting the spawner and the fry. Monitoring of shrimp fry quality, which is still relatively low, is being done continously by the BALITDITA in its laboratories in Java, Bali and South Sulawesi. The occurrence of infection such as viral, bacterial, protozoan and fungal should be closely guarded against, in the spawner, larvae as well as in the fry that is about to be sold (Lightner, 1988 and Parta sasmita et al, 1988). Infection by diseases are often fatal to the larvae and causes hatchery failures.

A problem that is also still encountered by the hatchery operator is marketing. Among others this is due to the low demand outside the stocking season in traditional (extensive) tambaks which in reality has the highest requirement. This situation is the primary reason for the low shrimp fry price during certain periods.

2.3 Feed Industry

Stimulated by the rapid growth of the shrimp culture industry, the shrimp feed industry also expanded correspondingly. The Directorate General for Various Industries (1989) reported that the number of shrimp feedmills has, during this period, reached 43 companies with a total rated capacity of more than 1.35 million tons. However of the number of companies registered only 15 are operational.

Aside from domestic production, the bulk of the shrimp feed (90 per cent) are imported, mostly from Taiwan. According to a Directorate General of Fisheries report, there are already 43 brands or trademark imported of shrimp feed available in Indone sia. Both local and imported feeds are compounded feed formulated to support intensive culture and therefore have high protein content and complete nutritional components.

One constraint facing the feed industry is the raw material supply. At present, the main ingredients for shrimp feed such as fish meal and soybean meal still have to be imported, so are other components such as squid meal, minerals and vitamins. One difference with the import of ready-made feed is that raw materials for feed manufacture are subject to import duties.

Locally produced feed still have to demonstrate consistency in quality in terms of water stability, ability to sink, leaching out of nutrient anf FCR. Variation in quality is due to differences in processing method and the ingredients or formula used. Some feed producers use imported feed formulation. Because the quality is not yet consistent, the local feed industry faces stiff competition from imported feeds. Furthermore the existing attitude preferring anything imported over local products is also not advantageous to the local feedmillers.

For imported feeds, problems in quality, consistency, and continuity of supply still exist. Often a brand of feed gives good results during initial trials and then during the subsequent growing cycles do not perform as well. In addition, it is often reported that a grower is forced to change the brand or type of feed used.

Previously, it has already been explained that imported feeds generally are formulated as nutritionally complete feed with high protein level and are intended for intensive shrimp farms. This type of feed if used for semi-intensive farms are too expensive and do not give sufficient profit. In semi-intensive tambaks, natural food are intentionally grown by fertilization. However the amount of feed is often not enough especially during the last months of culture. During that time, artificial feeds are still necessary as supplemental feed. Very little of this type of feed have been formulated yet.

2.4 Fertilizer, Chemicals and Pond Equipment Industry

The rapid development of the shrimp industry also stimulated the development of other ancillary industries such as fertilizer, chemicals and equipment.

Fertilizer supply has not yet been reported as a problem in shrimp culture. Fertilizer required in tambaks such as urea and TSP are marketed freely. The same is true with agricultural lime. On the other hand, pesticides which are required are still limited in quantity so that tambak farmers often have no choice but to use agricultural pesticides such as Thiodan, Trithion, and similar chemicals. Recommended pesticides such as saponin and rotenone are still imported. One chemical pesticide which is recommended is Brestan, but is relatively expensive.

Along with the development of intensive tambak, some chemical products are either imported or produced locally. One example is zeolite. This substance is supplied by at least 12 companies with their respective trademarks. This substance is promoted by its producers as a “savior” with a dozen of beneficial attributes. A lot of this products are imported and some are also produced locally by a few companies. Other chemicals that are suggested for use in intensive tambaks by their producers are some types of bacterial starters such as BN-9, ABA and others. In addition are some types of chemicals for hatchery and pond diseases. Regarding these chemicals, quality regulation, so that their effectivity can be guaranteed, is necessary. In addition, extension of accurate information regarding their benefits is very much required.

The development of intensive shrimp culture also stimulated the growth of the tambak equipment industry. Instruments for the analysis of various water quality parameters are already possesed by tambak operators. Technical terms such as pH, ammonia, dissolved oxygen and others are already part of day-to-day conversation of tambak people. In addition some equipment such as aerators and water pumps of various quality have already emerged. Many of the said equipment are not profes sionally produced and results in losses for the user. Like that for chemicals, the quality of water quality monitoring instru ments and tambak equipment should be regulated immediately.

2.5 Postharvest Industry

This industry is one link in the shrimp culture industry chain. A strong postharvest handling industry that works efficiently will be able to produce first class products which can command a high price in the export market. Low processing cost by itself will be able to increase the value of tambak shrimps.

Postharvest activity generally can be divided into primary handling, that is from the time the shrimp is harvested up to the time it reaches the processing plants; and secondary handling, that is while the shrimps is being processed inside the cold storage plant. The quality of the shrimps after the primary handling affects greatly the quality after processing. In addition, postharvest handling, both primary and secondary are also affected by the preharvest treatment.

At present (as of late 1988), 71 shrimp processing plants have been registered in Indonesia. Generally the said plants utilize mostly manual processing for such steps as washing, sorting, beheading and peeling. Such processing technique has a risk of contamination by pathogenic bacteria and foreign matter. On the other hand, if these are done mechanically, this activity can no longer be considered labor intensive and would reduce the workforce capacity.

In postharvest handling, the treatment before harvest, that is the way the shrimp is grown and harvested also affects processing quality. One example is the occurrence of cramped shimps as a result of the harvesting method, that is the shrimps are collected when the sun is high and the water is shallow. Pond bottom consisting of black and mud will also result in the occurrence of black gills in the shrimps being harvested. Furthermore, shrimps which are raised at a low salinity are generally coated with epibionts. Another example of quality deterioration due to pre harvest activity is the occurrence of blue shrimps.

Harvesting does not appear to be done correctly. Many tambak operators use dirty water for washing their shrimps and often also do not chill the shrimps, with the use of ice, immediately. With that, the quality during harvest no longer fills the requirement when the shrimp reaches the processing plant.


In formulating its research programme, the BALITDITA, and the units under it, uses its mandate and the experience of the LIT BANG as its basis with attention given to the fisheries develop ment programme of the Directorate General of Fisheries and the problems of coastal aquaculture in the field. It should be noted that the mandate of BALITDITA covers coastal aquaculture so that the shrimp research programme is only one part of the Centre's programme.

Research on all aspects of pond culture is being carried out at the national centre in Maros, South Sulawesi while those of hatchery are conducted in its subcentre in Gondol, Bali. The said programme includes:

  1. Diversification of species and culture techniques.
  2. Increasing productivity and technological efficiency in P. monodon hatchery.
  3. Increasing productivity and technological efficiency in P. monodon grow-out.
  4. Socio-economics of shrimp culture.

3.1 Diversification of Species and Culture Techniques

3.1.1 Objectives

This programme has the following objectives:

3.1.2 Output

This research programme is hoped to give the following results:

3.1.3 Activities

In order to attain the stated objectives, the research activities are as follows:

3.1.4 Duration

The above activities shall be conducted during the next 2 to 5 years.

3.2 Improved Hatchery Production and Technology

3.2.1 Objectives

The objectives of this programme are as follows:

3.2.2 Output

The targets of this programmes are as follows:

3.2.3 Activities

The activities that will be carried out will be in the form of experiments in the laboratory, in the BALITDITA hatchery as well as in private hatcheries.

3.2.4 Duration

The activities will be conducted for 2 to 3 years.

3.3 Increasing the Productivity, Efficiency and Product Quality in P. monodon Grow-out.

3.3.1 Objectives

This programme is aimed at:

3.3.2 Output

The following outputs have been targeted:

3.3.3 Activities

The research activities along this aspect shall include pond and laboratory experiments along with field testing in some areas as well as in existing tambak owned or operated by farmers.

3.3.4 Duration

The above activities shall be conducted during a 3 –5 year period.

3.4 Socio-economic Aspects of Shrimp Culture

3.4.1 Objectives

3.4.2 Outputs

3.4.3 Activities

In order to able to attain the objectives and expected targets, the research activities that shall be conducted are as follows:

3.4.4 Duration

The activities shall be conducted within a 3 to 5 year period.


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Anonymous. 1989 Selecting good shrimp feed (in Indonesian). Information materials from Temu Usaha Udang III. Panitia Temu Usaha Udang III, Pangkep, 16 September 1989.

Anonymous. 1989 Facts on the role of zeolite in intensive shrimp farms (in Indonesian). Information materials from Temu Usaha Udang III. Panitia Temu Usaha Udang III, Pangkep, 16 September 1989.

Balai Industri Ujung Pandang. 1989 Prospects for developing shrimp feed industry in South Sulawesi (in Indonesian). Information materials from Temu Usaha Udang III. Panitia Temu Usaha Udang III, Pangkep, 16 September 1989.

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Cholik, F., T. Ahmad dan A. Mustafa. 1988 Site selection and lay out for shrimp hatchery (in Indonesian). Proceedings National Seminar on Shrimp and Fish Hatchery. LITBANG and Padjadjaran University, Bandung, 5–7 July 1988.

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Irianto, H.E.1987 Methods of maintaining fresh shrimp quality (in Indonesian). Jurnal Litbang Pertanian VI (4), pp. 105– 108.

Mangampa, M. dan A.M. Pirzan. 1989 Shrimp species diversification using P.monodon and P.merguiensis de Man in semi-intensive culture system (in Indonesian). BALITDITA (unpublished).

Mangampa, M. dan A.M. Pirzan. 1988 Increasing tambak producation through species diversi fication using P. monodon Fab., P. merguiensis de Man and Metapenaeus spp. (in Indonesian). J. Penelitian Budidaya Pantai IV (1), pp.29–40.

Partasasmita, S., M.I. Madeali dan A. Tompo. 1988 Inventory of parasites and diseases in tiger shrimps (P. monodon) in hatcheries and tambaks in Java and Bali (in Indonesian). J. Penelitian Budidaya Pantai IV (1), pp. 65–75.

PT Bukaka Agro. 1989 Feed for tambak shrimp culture (in Indonesian). Information materials from Temu Usaha Udang III. Panitia Temu Usaha Udang III, Pangkep, 16 September 1989.


Firial Marahudin
Directorate for the Management of Farmers and Fishermen and Fishery Product Processing
Directorate General of Fisheries, Jakarta


According to the 1983 census, the level of education of tambak farmers is on the average very low and is almost the same in every province. Those who have not yet finished elementary school constitute the largest precentage at 35.23%, while those who finished secondary school and up only 4.69%. With such situation, it is necessary to tailor the development effort to fit the level of knowledge of the target group. In an effort to deal with the existing problems, the government has already made available the following: tambak canal development, shrimp hatcheries and credit facilities. With the said development, it can be seen that the number of tambak households have increased from 65,824 units in 1980 to 85,851 units in 1987. Production and incomes have also increased. In 1980 the total tambak production of shrimps was 23,632 tons. This increased to 55,967 tons in 1987. In terms of value per household, there has been an increase from Rp. 1.094,000 in 1980 to Rp. 3,716,000 in 1986.


With the issuance of KEPPRES No. 39 in 1980 banning the use of trawls, the government looking at the tambak culture of shrimps as one alternative to guard against the fall of national shrimp production. The tambak area at that time was listed at 189,000 ha with a total number of tambak farmers at 113,000 persons which are distributed from Aceh, Java, South and Southeast Sulawesi up to West Nusa Tenggara.

In 1980 there were only 65,878 tambak household units listed with a total production of 98,000 tons which consisted of fish, primarily milkfish, at 74,000 tons and various species of shrimps such as P. monodon, P. merguiensis/indicus and Metapenaeus ensis, which altogether amounted to 24,000 tons.

Tambak culture was characterized by a low productivity with an average of 152 kg/ha/year. This has been attributed to the lack of knowledge about aquaculture technology, inavailability of water at a volume and with the quality required, lack of fry and lack of capital for development as well as for operation. In order to overcome these problems, the government has imple mented several activities including rehabilitation and development of tambak canals, development of shrimp hatcheries, provision of capital through credit, and technical guidance through extension. Aside-from this, the government has encour aged the private sector to assume active roles in the development of hatcheries and other commercial facilities. However before continuing with the development activities being conducted by the government, let us first look at the tambak fisheries situation in Indonesia.


2.1 Tambak Households

The number of tambak households in Indonesia was listed at 85,851 units in 1987, representing an increase from the 65,878 units listed in 1980. Meanwhile there were 145,235 persons listed as involved in tambak fisheries in 1987, an in crease from the 113,162 persons listed in 1980, an average of 3.6% per year.

In terms of distribution, South Sulawesi has the most number of tambak households with 17,245 units followed by East Java with 16,583 units in 1987. Aceh which has a relatively lower population compared to West Java, apparently has a greater number of tambak households at 14,497 units.

The distribution of tambak farmers follows almost the same pattern as that of the households, that is South Sulawesi having the greatest number at 29,317 persons followed by East Java and Central Java with 28,191 and 26,413 persons respectively. The complete list can be seen in Table 1.

2.2 Tambak Size Distribution

In terms of size tambak holdings in some provinces where tambak, is important, it can be seen that the majority of households (above 40%) have tambak with an area of less than 2 ha except in West Java (30.2%) and East Java (22.6%). Provinces with the most number of households owning less than 2 ha area West Nusa Tenggara (71.2%) followed by Central Java (61.8%).

What is interesting is West Java and East Java Which has relatively fewer households owing a tambak of less than 2 ha but instead has a fairly large number owning a tambak between 5–10 ha in size, at 28.8% and 30.2% respectively. Meanwhile all other provinces in general has less than 20% of households with ponds of the 5–10 ha category.

For tambak with an area of more than 10 ha, West Java and South Sulaweshi have relatively higher numbers, when compared to that of other provinces, both having 6.5%. A complete list can be seen in Table 2.

2.3 Educational Attainment

According to the 1983 Agricultural Census, the educational at tainment of tambak farmers on the average is very low, since generally very few have gone to or have finished primary school.

Tambak operators who have not finished primary school constitute the largest percentage at 35.23% followed by those who have finished primary school at 31.41% and those who have not gone to school at all at 22.16%. Meanwhile tambak operators who have gone through SMTP (Junior High School) and SMTA (Senior High School) have very low percentage at 6.51% and 4.69% respectively. The educational attainment can be seen in Table 3.

In terms of distribution by provinces, it appears that the difference between provinces is not very much, with the majority in all provinces having low educational attainment.

The size of tambak being operated do not appear to have much bearing on the educational attainment of the operator as well, which in general is very low, except above the 10 ha level. For example, of operators with tambak areas of less than 1 ha about 25.1% have never gone to school and 39.28% have not finished primary school and only 3.56% have finished senior high School or higher. For operators with tambak areas of 15 ha or more, although in general the educational level is still on the average low, there seem to be a trend towards a high attainment when compared to those with smaller tambak. As an example for tambak of 15 ha or bigger, about 16.51% of the operators have never gone to school and another 24.37% have not finished elementary school. However some 9.48% have finished senior high school or higher. For a complete breakdown of the percentages of tambak operators at the different educational levels categorized according to the size of tambak holding, see Table 4.

2.4 Pond Operator Income

The value of products and the annual income of pond operators per household, according to the 1983 Agricultural Census, based on the highest figure was for a tambak with an average area of 29 ha to have a production valued at Rp. 11,720,000 and a net income of Rp. 5,633,000. The lowest product value is found among those with 1 ha or less where tambak with an average area of 0.4 ha produced only Rp. 395,000 in one year with a net income of Rp.240,000. For a complete breakdown see Table 5. As a whole it is determined that from an average tambak area of 2.88 ha, the value of products is Rp.1,442,000 and the income per household is Rp. 751,000 per year.

Production value and income per household is highest in South Sulawesi and West Java and the lowest in West Nusa Tenggara (see Table 6).


In order to overcome the various constraints faced by tambak fisheries, such as availability of water and lack of fry, lack of capital, the government has started some development activities.

3.1 Canal Development

In order to fill the requirement for good quality water, the government, since 1974 using funds from the national budget has started to rehabilitate or normalize the tambak canal systems in some regions such as Aceh, the three Java provinces, South Sulawesi and others. About 660.2 km has been rehabilitated under this programme distributed as follows:

- D.I. Aceh68.00   km
- North Sumatra2.00     km
- Lampung18.00   km
- West Javal02.50   km
- Central Javal84.25   km
- East Javal21.50   km
- East Kalimantan11.05   km
- South Sulawesi93.70   km
- Southeast Sulawesi24.50   km
- Others34.70   km
TOTAL660.20  km

Furthermore through the ADB-funded Brackishwater Aquaculture Development Project (BADP), some 281 km of canals in 3 provinces, namely West Java (43 km), Central Java (139 km) and East Java (99 km), are already being developed or rehabilitated. At this time work on the major part of these canals have been finished and these canals are already benefiting the tambak farmers around them. It is expected that once the whole work is completed, some 12,000 ha of tambak in the 3 provinces concerned shall be supplied with water.

Lastly starting from budget year 1987/1988, the World Bank-funded Fisheries Support Services Project, which is a joint project between the Directorate General of Irrigation and the Directorate General of Fisheries, shall develop irrigation canals to supply 18,000 ha of tambak. The areas that will be developed are those which have not yet been reached by the First Phase BADP, namely Aceh (5,000 ha), South Sulawesi (11,000 ha) and Central Sulawesi (2,000ha).

3.2 Shrimp Hatcheries

The development of shrimp hatcheries by the government is for the purpose of pioneering in shrimp fry production in order to fill the increasing demand. Through the BADP, 5 hatcheries, each with a capacity of 40 million fry per year, has already been built in Aceh (1), West Java (1), East Java (2) and South Sulawesi (1). The units in Pandeglang (West Java), Situbondo (East Java) and Barru (South Sulawesi) are already fully operational while those of Aceh and Tuban (East Java) are still in the trial operation stage.

Aside from this, the government-funded Shrimp and Fish Culture Development Project, a project which integrates a hatchery, tambak and cold storage, has already built a shrimp hatchery in Pandeglang, West Java which started to operate this year (1989) with a production capacity of 60 million fry per year.

The private sector which has seen the economic opportunities in supplying shrimp fry by this time has already built and operated 112 hatcheries in areas with high potentials such as Aceh, West Java, Central Java, East Java, South Sulawesi and other areas. It is estimated that fry production from all these private hatch eries reaches 1.5 billion per year.

3.3 Credit

In order to assist the farmers in overcoming their difficulties in obtaining funds for capital for development and operation, starting fiscal year 1984/1985, the government has initiated the tambak intensification (INTAM) programme which involves shrimp or shrimp with milkfish culture in tambak using a technology package that involves the Sapta Usaha Pertambakan, which includes:

Areas covered by the INTAM programme include Aceh, West Java, Central Java, East Java, South Sulawesi, East Kalimantan, West Nusa Tenggara, Southeast, Sulawesi, South Kalimantan and Bali. In order to achieve the INTAM target, extension activities shall be carried out by approaching tambak farmer group according to blocks of tambak or according to blocks of their dwelling places. The credit that shall be extended shall be in the form of KIK or KMKP with a 12% per year interest.

According to the result of an evaluation of the INTAM programme conducted by the Directorate General of Fisheries and BP BIMAS, up to fiscal year 1988/1989 (August 1988), only Rp. 2,352.4 million has been disbursed through INTAM Kredit so far, with an annual disbursement as follows: 1986/1987 - Rp. 728.8 million; 1987/1988 - Rp. 543.3 million, and 1988/1989 (up to August 1988) - Rp. 1,080.3 million.

Although the realization rate for INTAM Kredit is still very low, there is indication that some development is taking place since it was launched in 1984/1985, and that it is also reaching out to more farmers as can be seen in Table 7.

Aside from INTAM Kredit there is another form of intensification activity known as INTAM Swandana. INTAM Swadana participants can also obtain credit from banks and other sources but with requirements and procedures which differ from that of INTAM Kredit. The credit ceiling is also higher especially for farmers who want to apply advanced technology. In the Brebes Regency, for example a tambak farmer was able to borrow up to Rp. 70 million from the Bank Negara Indonesia Tegal Branch. (INTAM Swadana literally means selffinanced INTAM, participants of this programme may also obtain on their own initiative credit either from non-bank sources such as a feed supplier-in terms of feed or a regular loan from any bank but at non-subsidized-i.e. prevailing market rate-Editor).

Compared to INTAM Kredit, the implementation of INTAM Swadana appears to be more rapid, both in terms of tambak area as well as number of farmers involved. For example in 1987/1988, the accomplishment rate reaching 223% and involving 12,208 farm ers. The full annual accomplishment rate is shown in Table 8.


If 1980, when the trawl ban was implemented, is considered the base year; and 1987 as the final year, when of the latest fisheries statistics data are available, some of the impacts of development are already evident. These are discussed below.

4.1 Number of Tambak Households

The total number of tambak households in Indonesia has increased from 65,824 units in 1980 to 85,851 units in 1987, an average increase of 3.9% per year. When broken down by tambak size category, the highest increase in the number of tambak households is shown by those with 10 ha tambak or bigger, at 1,893 units in 1980 to 3,654 units in 1987, an average increase of 9.8% per year. Meanwhile those categorized as having households in the smaller tambak showed a relatively smaller increase as can be seen in Table 9.

The relatively larger increase in the number of households for tambak categorized as bigger indicates that the availabil ity of infrastructure and inputs along with the bright prospects for shrimp has already pushed the larger investors to invest their capital in tambak.

4.2 Production and Productivity

When the production figures of all species of shrimps (P. monodon, P. merguiensis and M. ensis) for 1980 and 1987 are compared, it can be seen that this has increased from 23,632 tons to 55,967 tons or an increase of 19.5% per year. Among the 3 species, the P. monodon showed the highest increase at 42.7% per year as can be seen in Table 10.

In terms of productivity an increase had also occured from 152.4 kg/ha in 1980 to 244.8 kg/ha in 1987 or an average yearly in crease of 8.6%. P. monodon showed the highest increase at 24.4% per year. This is to be expected because all the effort at increasing shrimp production so far has been centered on the P. monodon. The INTAM evaluation team has looked at the productivities attained in the fields and has compared these with the target set for each technology package. The said targets are as follows:

- Shrimp monoculture: 
low density (A1)
- 200 kg/ha/cycle
medium density (A2)
- 800 kg/ha/cycle
- Polyculture with milkfish: 
low density (B1)
- 150 kg/ha/cycle
 + 300 kg milkfish
medium density (B2)
- 400 kg/ha/cycle
 +250 kg milkfish

Based on data collected from the 5 participating provinces, it was determined that the productivity attained in terms of per cent of target are as follows: Lampung 62.8%, West Java 54.8%, Central Java 128%, East Java 80.1% and South Kalimantan 49.5%. It can be seen that Central Java has the highest productivity level compared to the other provinces. The productivity level attained in Central Java is based upon the average productivity of 3 sample areas (Brebes, Pemalang and Kendal).

The said findings in Central Java of the INTAM evaluation team is almost the same as that of the survey results regarding the impact of canal development conducted by the BADP in Brebes, Pemalang and Pati. The later survey indicates an increase in the shrimp productivity level in the tambak within the canal development area from 118 kg/ha/cycle before the canals were built to 1,424 kg/ha/cycle after the canals were built.

4.3 Income

Up to this time there is still no comprehensive study analyzing the cost and returns in tambak operations using different technology levels. Aside from this, since 1967 the Indonesian Fisheries Statistics which is published by the Directorate General of Fisheries has no longer provided the value of the production based on species. The Agricultural Census of 1983 which included an analysis of tambak fisheries operation cannot be used for comparison because no similar study has yet been conducted recently. However, an attempt can be made to arrive at some approximations by comparing the value of tambak production in 1980 with that of 1986 using available data.

In terms of value of production per household it appears that there has been an increase from Rp. 1,094,000 in 1980 to Rp. 3,716,000 in 1986, representing an average annual increase of 34% (without considering inflation). However if an inflation rate of 10% per year is assumed, the increase in real value of production per household is still sufficiently encouraging.

The aforementioned BADP survey in three areas in Central Java, Brebes, Pemalang and Pati, which involved 51 respondents indicates that the income per tambak household has on the average increased from Rp. 1.9 million per year before the canals were built to Rp. 7.2 million after canal development. The said figures probably are not yet representative of the areas which has not yet been reached by development projects. However it can be concluded that making physical infrastructures available for tambak culture in combination with provision of production inputs and capital along with technical guidance through exten sion, can have an impact in increasing the productivity and income of tambak farmers.


  1. Development efforts that are executed by the government in the form of physical infrastructure development, provision of inputs, along with technical support and guidance through extension appears already to be able to increase the productivity and income of tambak farmers and in addition is already able to attract investors with large capital to engage in tambak operation.
  2. It is apparent that the educational attainment of tambak farmers which on the average is still low requires development approaches in the tambak sector both for technical and managerial skills, which should be designed according to level of knowledge of the target group.
  3. The number of tambak households which have enjoyed credit facilities is only 14% of the total number of tambak households. This indicates that a relatively larger number of tambak farmers have not yet availed of the said assistance. Because of this, any obstacles to the com pletion of land certificates to be used as collateral in INTAM Kredit should be given higher attention aside from learning from the experience in the execution of INTAM Swadana.
  4. Under situation where the P. monodon market is becoming filled with competitors, aside from a lowering of production costs and production of higher quality shrimps, it is necessary to diversify the production to include other species such as P. merguiensis, P. semisulcatus and other products which can reduce market risks.
  5. In order to know the cost and returns structure in tambak operation, a study or research regarding such matter is necessary on the various types of technology used in tambak operations aside from taking a look at the production costs in competitor countries.


Biro Pusat Statistik. 1987 Fisheries Census 1983. Analysis of tambak Fisheries (in Indonesian), Jakarta.

Brackishwater Aquaculture Development Project. 1989 Impact of canal rehabilitation on farmers. BADP, Jakarta.

Direktorat Jenderal Perikanan. 1982 Fisheries Statistics of Indonesia 1980, Jakarta.

Direktorat Jenderal Perikanan. 1989 Fisheries Statistics of Indonesia 1987, Jakarta.

Direktorat Jenderal Perikanan dan BP Bimas. 1989 Evaluation of the implementation of INTAM programme in five provinces (in Indonesian), Jakarta.

Table 1. Number of tambak households and tambak farmers by province, Indonesia, 1987.

No.ProvinceHouseholdsTambak farmer
1.DI Aceh14.49724.645
2.West Java11.31418.102
3.Central Java15.53726.413
4.East Java16.58328.191
5.West Nusa Tenggara3.0465.178
6.South Sulawesi17.24529.317
7.Other Provinces7.62913.389

Source: Fisheries Statistics, Dir. General of Fisheries, 1989.

Table 2. Number of tambak households according to tambak area operated by province, Indonesia, 1987.

ProvinceNumber of households
<2 ha2–5 ha5–10 ha>10 haTotal
1. DI Aceh6.8995.1632.15028514.506
2. West Java3.4233.9013.24974111.314
3. Central Java9.6014.47096550115.537
4. East Java3.7477.3285.00550316.583
5. West Nusa Tenggara2.171614238233.046
6. South Sulawesi7.4315.7002.9921.12217.245

Source: Fisheries Statistics, Dir. General of Fisheries, 1989.

Table 3. Number of tambak operators by educational at tainment, Indonesia, 1983.

Educational levelNumber of
Tambak operator
Percentage (%)
Never been to school14.12022,16
Primary school drop-out22.45635,23
Primary school (SD)20.01931,41
Junior high school (SMTP)4.1486,51
Senior high school (SMTA) & higher2.9894,69
T O T A L63.732100,00

Source: Central Statistics Bureau, 1987. Agricultural Census 1983, Tambak Fisheries Analysis.

Table 4. Percentage of tambak operators by area of tambak and by educational level, Indonesia, 1987.

area category (ha)
Never been
to school
Prim. school
Less than 1,0025,1039,2826,945,123,56100,00
15,00 & up16,5124,3735,5814,069,48100,00

Table 5. Value of annual production and incomes in tambak operation per tambak household, Indonesia, 1983.

Tambak area category
Average tambak area (ha)Value of production 
(Rp. 000)
15,00 & higher95129,2411.7205.633
T O T A L60.4472,881.442751

Source: Central Statistics Bureau, 1987. Agricultural Census 1983, Tambak Fisheries Analysis.

Table 6. Value of annual production and average income for tambak operation by province, Indonesia, 1983.

tambak area 
operated (ha)
Value of 
DI Aceh9.4402,241.612852
West Java7.8824,481.714938
Central Java13.5791,991.032551
East Java8.5113,621.408731
West Nusa Tenggara2.9211,17379112
South Sulawesi13.6573,301.861922
Other Provinces3.3902,541.308535
Source: Central Statistics Bureau, 1987. Agricultural Census 1983, Tambak Fisheries Analysis.

Table 7. Realization of INTAM Kredit in terms of tambak of area and number of farmers, Indonesia, 1984/85 to 1988/89.

covered (ha)
rate (%)
No. of farmers

* Up to October 1988.

Source: Result of INTAM Programme Evaluation, Dir. General of fisheries and BP BIMAS 1988.

Table 8. Realization of INTAM Swadana in terms of tambak area and number of farmers, 1984/85 to 1988/89.

covered (ha)
rate (%)
No. of farmers

* Up to October 1988.

Source: Result of INTAM Programme Evaluation, Dir. General of Fisheries and BP BIMAS 1988.

Table 9. Number of tambak households according to tambak area owned.

YearNumber of households
<2 ha2–5 ha5–10 ha> 10 haTotal
Ave. annual
increment (%)

Source: Fisheries Statistics, Dir. General of Fisheries, 1982 dan 1989.

Table 10. Shrimp production and productivity according to species, 1980 and 1987.

1980 1987  
VolumeProductivityVolumeProductivityAve. annualgrowth (%)
P. monodon6.31740,725.202110,221,915,3
White shrimps9.43660,916,98174,38,72,9
M. ensis7.87950,813.78960,38,32,5
T O T A L23.632152.455.967244,813,17,0

Source: Fisheries Statistics, Dir. General of Fisheries, 1982 and 1989.


Wasi Kirana
Bank Rakyat Indonesia, Jepara, Jawa Tengah


Two credit packages have been made available by the government to economically-disadvantaged entrepreneurs which include tambak farmers. The first is the “KI/KMK up to Rp. 75,000,000” under which a borrower can avail of up to Rp. 75 million as capital investment loan (KI) and another Rp. 75 million as working capital loan (KMK). The second is the KIK/KMKP package for small-scale enterprises which has a ceiling of Rp. 30 million for KIK or capital investment component and another Rp. 30 million for the working capital component (KMKP). Both packages are available through authorized banks such as BRI, BNI, BDN, BBD, BEII and BPI. A third package known as KUPEDES is available only in BRI, village units and has a loan ceiling of only Rp. 5,000,000. Although intended primarily to finance small-scale ventures in rural areas, it may also be availed of by fixed-earners such as government employees to finance home appliances. Qualification of borrowers, bank requirements and credit provisions are detailed in the paper.

1. KI/KMK UP TO RP.75,000,000

1.1 Definition of KI and KMK of up to Rp.75,000,000

  1. “KI of up to Rp. 75,000,000” is a loan given to entrepreneurs who are considered economically-disadvantaged to serve as capital to finance the rehabilitation, modernization and expansion of an existing project as well as to establish a new project.
  2. “KMK of up to Rp 75,000,000” is a loan given to economically-disadvantaged entrepreneurs to finance their working capital requirement in order to have a smooth operation.

1.2 Borrowers

  1. Qualified borrowers for KI and KMK consist of companies or entrepreneurs who are economically-disadvantaged, including in digenous Indonesian who posses a total asset of not more than Rp. 600 million, and a capital deposit, at least 50% of which is owned by indigenous Indonesian and the majority part from each director or at least 75% of the capital deposit is owned by an indigenous Indonesian.
  2. Capital deposit is capital divided into shares in a limited liability company (PT) as well as capital that is not divided into shares as in a limited partnership, full partnership, single proprietorship and cooperatives.

1.3 Source of Fund

The lending bank shall provide 30% of the loan. The balance of 70% shall come from Bank Indonesia with an interest of 3% per year.

1.4 Credit Provision

1.4.1 Credit ceiling

  1. The credit ceiling for KI and KMK of up to Rp. 75 million can be combined to a total of Rp. 150 million for each borrower which is applied in a fully flexible manner.
  2. KI and KMK borrower who owns more than one business concern, may avail of KI loan of up to Rp. 75 million and KMK of up to Rp. 75 million for each of his business concerns within their respective loan ceiling provided the total loan does not exceed Rp. 150 million.
  3. Borrowers who have already availed of KI and KMK loans but with a total loan amount that is less than Rp. 150 million may avail of additional KI and KMK credit provided the resulting total amount shall not exceed Rp. 150 million.
  4. Each loan application with a loan amount which does not exceed the credit ceiling of KIK/KMKP cannot be funded by KI of up to Rp. 75 million and KMK of up to Rp. 75 million, even if the said borrower is classified as an economically-disadvantaged entrepreneur/company if the said borrower has a total asset, excluding house and lot that is utilized as residence, of more than Rp. 300 million.
  5. In case a borrower, who already enjoys KIK and/or KMKP, requires additional credit in order to expand, because of escalation of prices, and for other reasons, so that the total credit amounts to more than the KIK/KMKP ceiling, the additional loan may be requested from KI and/or KMK of up to Rp. 75 million.

1.4.2 Borrower's equity funds

  1. The borrower should be prepared to finance 10% of the total project cost out of his own funds.
  2. Such equity funding should not come from borrowings from a third party.
  3. The equity funds should be actually filled by the borrower from his own funds coming from profits, from the previous year's operation, which have not yet been shared.

1.4.3 Loan maturity

The maturity of KI/KMK of up to Rp. 75 million is based on the ability to pay back the project financed with certainty as follows:

  1. The maximum duration of KI of up to Rp. 75 million loan is 10 year inclusive of a 4 year maximum grace period.
  2. Repayment schedule or extension of loan maturity is probable within the 10 year maximum maturity period.
  3. The KMK has a maximum maturity period of 1 year.
  4. Extension of the KMK loan maturity is possible with a one-year maximum period for every extension.

1.4.4 Loan interest

  1. The interest for KI and KMK is 15% per annum.
  2. In case of arrears on the payment of interest, the unpaid interest is charged 15% per annum interest.
  3. Interest on the KI loan which accrues during the development period can be categorized as part of total project cost and can be considered during loan issuance provided the undertaking is a new one.

1.4.5 Documentary, commitment fee and credit provision

  1. Documentary stamp fees are collected based on the prevailing rate.
  2. Commitment fee is charged only at one time at the rate of 3/4% of the credit ceiling which has not yet been drawn, during the first month.
  3. Credit provision is charged in the issuance of KMK at the rate of 1/2% of the credit ceiling on top of the interest charges.

1.4.6 Loan guarantee

  1. In appraising a project, the Bank gives emphasis on project feasibility.
  2. Guarantee for KI/KMK basically is the project being funded by the said loan.

1.4.7 Projects that can be financed

Project that can be financed are all those projects which produce goods and service except for the following:

1.4.8 Others

  1. Taxpayer's Account Number
  2. KEPPRES 29/84 Provision for KI/KMK
    In the issuance of the KMK of up to Rp. 75 million KEPPRES 29/84 requires that the funds be credited direct to the account of the lending bank once the KI loan is granted.


2.1 Kredit Investasi Kecil (KIK)

2.1.1 Definition

  1. KIK is a medium to long term loan that is granted to small-scale pribumi entrepreneur/enterprise, with special requirements and procedures, in order to finance capital goods required for rehabilitation, modernization, or expansion of a project and others.
  2. Economically-disadvantaged small-scale pribumi entrepreneurs/enterprise are as follows:
  3. Pribumi includes those who belong to the indigenous Indonesian communities such as the following ethnic groups: Aceh, Ambon, Batak, Java, Madura, Minangkabau, Minahasa, Sunda, Palembang and others and not (including) Indonesian citizens (non-pribumi) such as those descended from Europeans, Chinese, and easterners such as Arabs, Indians, Pakistanis and others.
  4. Entrepreneurs/enterprise are persons or bodies who transform production factors into goods/services that are required by the people.

2.1.2 Special requirements for KIK

  1. The credit facility can be extended only to small entrepreneurs who are pribumi.
  2. The maximum KIK loan amount is Rp. 30 million per borrower.
  3. Loan interest is 12 per annum.
  4. Promissory note to open the credit is charged a documentary stamp fee of Rp. 1,000.
  5. Loan maturity is 8 years maximum inclusive of a maximum 4-year grace period.
  6. An equity fund of 25% is not absolutely required.
  7. The primary collateral is the project that is being financed by the loan itself. In addition to the primary collateral the borrower concerned should also have available a supplemental collateral in the form of the borrower's own assets.
  8. The loan is insured by PT Askrindo.

2.1.3 Procedure for obtaining KIK

  1. File a request with a lending bank by filling up a loan application form.
  2. Comply with all the requirements stipulated by the bank.
  3. The decision on the magnitude of the loan depends on the actual requirement as appraised by the bank.

2.2 Kredit Modal Kerja Permanen (KMKP)

2.2.1 Definition

KMKP stands for Permanent Working Capital Loan. This type of loan is given to economically-disadvantaged entrepreneurs who are considered pribumi to finance their working capital requirement so as to ensure their smooth operation, and can be used continuously during the loan duration.

2.2.2 Special requirements for KMKP

  1. Just like KIK, the KMKP facilities can be given only to small-scale entrepreneurs who are considered pribumi.
  2. The maximum amount that can be issued to each borrower is Rp.30 million.
  3. Loan interest is 12% per annum.
  4. Maximum loan period is 5 years and the minimum is 3 years.
  5. No equity funds is required.
  6. Documentary stamp duty is Rp.1,000.
  7. Primary collateral is the project being financed by the loan. If the said collateral is not enough, the borrower concerned has to have additional collateral ready.

2.2.3 Procedure for obtaining KMKP

The procedures are the same as for KIK. The credit ceiling for a combination of KIK/KMKP is Rp.30 million for each borrower and can be applied in a fully flexible manner.

2.3 Requirements for Potential KIK/KMKP Borrowers

  1. A potensial borrower should be an economically disadvantaged small-scale entrepreneurs or enterprise classified as pribumi.
  2. Partnerships (Fa, CV and others) should have an Akte Perusahaan (Business Concern Certificate). Legal bodies such as PT (limited liability company) or cooperatives should possess all the requirements of the legal body concerned.
  3. For activities which required a permit to operate, the said permit is included as part of the requirements which have to be complied with by the potential borrower. Permit to operate consists of locational permit issued by the local government and a business license from the Department of Trade and other permits or licenses according to the type of activity involved. The provision for business licenses is implemented as follows:
  4. For those engaged in activities that do not require licenses such as farmers and fishermen, the application for KIK/KMKP can be completed with a recommendation from the authority concerned.
  5. If the potential borrower is a government employee (civilian or military) the borrower should not be one of those prohibited from engaging in business according to the provisions of PP No. 6/1974 and should already have a permission in writing from respective agency the borrower is connected with.

2.4 Lending Banks for KIK/KMKP

Because of the large number of field of activities that has to be served and in order to make loan servicing easier, every government bank, development bank and private national bank that has been designated as implementing banks for KIK/KMKP should serve loan applicants from the small entrepreneurs with priority given to the production sectors that are within their respective primary fields of concern.

The primary sectors for the various banks are as follows:

  1. Bank Rakyat Indonesia (BRI)
  2. Bank Negara Indonesia 1946 (BNI 46)
  3. Bank Dagang Negara (BDN)
  4. Bank Bumi Daya (BBD)
  5. Bank Expor Impor Indonesia (BEII)
  6. Bank Pembangunan Indonesia (BPI)


3.1 Definition

KUPEDES is a facility for credit that is prepared by the village unit of the BRI to develop or improve a small enterprise that is suitable for the rural areas. Such enterprise includes those already assisted by BIMAS/MINI/MIDI or other facilities as well as those who has not yet availed of any credit facility. From the said definition, KUPEDES is primarily aimed at financing small-scale ventures in the rural areas.

3.2 Target of KUPEDES

The target of KUPEDES consists of two groups, these are:

  1. Entrepreneurs
    This includes those who are engaged in some sectors which include agriculture, industry, trade, services and others.
  2. Employees with fixed earnings
    This includes government employees who are covered in PP No. 6/1974 as follows:

3.3 Type of KUPEDES

  1. Working capital (operating funds) - this is extended to the borrower as an additional working capital (for entrepreneur) or for consumer needs (for employee).
  2. Investment-this is a credit facility to finance the development of infrastructure for production.

3.4 Requirements for Potential KUPEDES Borrowers

  1. For entrepreneurs
  2. For fixed-wage earners

3.5 Loan Magnitude/Ceiling

  1. Minimum of Rp. 25,000
  2. Maximum of Rp. 5,000,000

3.6 Interest

  1. For working capital/operating funds 1.5% per month
  2. For capital investment 1.0% per month

3.7 Collateral

  1. Movable goods:
  2. Fixed goods:

3.8 Loan Maturity

  1. Working capital loan:
  2. Capital investment:

3.9 Documentary Stamp Duties

Borrowers are not charged any fee by KUPEDES except for documentary stamp duties according to existing regulations.

3.10 Others

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