Fuel Subsidies to Marine Fisheries in Indonesia
An overview
Fuel subsidies are one of the most common types of government support to the fisheries sector. This brief presents an overview of fuel subsidies to marine fisheries in Indonesia, explains why such measures can be risky from a sustainability perspective, and highlights how possible reform could be informed by Indonesia's experience in reforming fossil fuel subsidies more broadly.
-
Fuel subsidies are the second-largest type of support provided by the Indonesian government to the marine fisheries sector, but also the most consistent, with very significant amounts committed every year.
-
Fuel subsidies provided to the fishing sector are risky from a sustainability perspective, as they can incentivize overfishing.
-
Possible reform of fuel subsidies to marine fisheries could be informed by some of the key lessons from Indonesia's experience in reforming fossil fuel subsidies more generally.
Indonesia is the second-largest marine fish producer in the world after China. Its fishing sector is essential for ensuring food security, supporting employment, and generating income, making it a key sustainable development priority for the country's authorities.
Government support can play an essential role in efforts to ensure that marine fisheries can continue to support these many benefits for the Indonesian population. However, some common types of fisheries subsidies, like fuel subsidies, can also pose significant risks to the sustainable exploitation of marine resources.
This brief provides an overview of fuel subsidies to marine fisheries in Indonesia by presenting key information and figures about this type of government support measure. It also explains why a detailed assessment of fuel subsidies is needed, emphasizing the need to better understand how they affect fishing communities and the marine resources they rely on for their livelihoods, as well as whether any possible reform could better serve the desired policy objectives. The brief concludes by offering key lessons from Indonesia’s experience in reforming fossil fuel subsidies more broadly.
Participating experts
You might also be interested in
Supporting Marine Fishing Sustainably: A review of central and provincial government support for marine fisheries in Indonesia
The report provides an inventory of support measures to marine fisheries in Indonesia and identifies programs to be assessed to minimize the risk of overcapacity and overfishing.
Landmark Agreement Curbing Harmful Fisheries Subsidies Awaits Ratification A Year After Adoption
This month marks the first anniversary of the World Trade Organization’s (WTO) historic Agreement on Fisheries Subsidies. The treaty, adopted at the WTO's 12th Ministerial Conference, established the first global, legally binding framework that limits subsidies for illegal, unreported and unregulated (IUU) fishing and fishing of overfished stocks, as well as subsidies to vessels fishing on the unregulated high seas. The agreement also calls for countries to exercise “due restraint” in providing subsidies to vessels that do not fly their country’s flag or those that fish stocks with unknown status.
Source to Sea: Integrating the water agenda in 2023
2023 could prove to be a definitive year for facilitating an integrative perspective on water issues, from fresh water to the marine environment.
The WTO Agreement on Fisheries Subsidies: A Reader's Guide
This guide provides a clear overview of the World Trade Organization Agreement on Fisheries Subsidies, explaining succinctly the rules and provisions that the treaty establishes.