Indonesia: Infrastructure Improvement for Shrimp Aquaculture Project

Sovereign Project | 55020-001

The project will help the Ministry of Marine Affairs and Fisheries (MMAF) to introduce sustainable shrimp aquaculture to increase the productivity, quality, profitability, and environmental sustainability of shrimp farming by smallholders. The project will improve smallholder farmers' access to quality inputs, production, and post-harvest practices and traceability through infrastructure, capacity support, and value chain strengthening in selected locations (Across Bali, Banten, Central Java, East Java, Lampung, Nangro Aceh Darusalam, and South Sulawesi provinces). It is aligned with the following impact: contribution of the fisheries industries to the national economy increased. It will have the following outcome: productivity, profitability, and environment sustainability of shrimp aquaculture increased.

Project Details

  • Project Officer
    Quincieu, Eric
    Southeast Asia Department
    Request for information
  • Approval Date
    14 December 2022
  • Country/Economy
    Indonesia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Infrastructure Improvement for Shrimp Aquaculture Project
Project Number 55020-001
Country / Economy Indonesia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4283-INO: Infrastructure Improvement for Shrimp Aquaculture Project
Ordinary capital resources US$ 93.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Agriculture, natural resources and rural development / Agriculture research and application - Agro-industry, marketing, and trade - Fishery - Irrigation
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will help the Ministry of Marine Affairs and Fisheries (MMAF) to introduce sustainable shrimp aquaculture to increase the productivity, quality, profitability, and environmental sustainability of shrimp farming by smallholders. The project will improve smallholder farmers' access to quality inputs, production, and post-harvest practices and traceability through infrastructure, capacity support, and value chain strengthening in selected locations (Across Bali, Banten, Central Java, East Java, Lampung, Nangro Aceh Darusalam, and South Sulawesi provinces). It is aligned with the following impact: contribution of the fisheries industries to the national economy increased. It will have the following outcome: productivity, profitability, and environment sustainability of shrimp aquaculture increased. Specifically, it will (i) increase quality and sustainability of inputs for shrimp production, (ii) develop sustainable and climate adaptive aquaculture infrastructure and services, and (iii) strengthen shrimp aquaculture supply chain.
Project Rationale and Linkage to Country/Regional Strategy

Indonesia is among the top five shrimp producers in the world, with a global market share of 8.7%. Its shrimp product exports to the European Union, Japan, and the United States totaled $2.04 billion equivalent in 2020. Indonesia is a leading exporter of frozen seawater shrimp but lags its peers in exports of fresh, salted, or smoked shrimp. The main farmed shrimp species is the whiteleg shrimp (Litopenaeus vannamei), which accounts for 80% of production. The whiteleg shrimp is cultivated by large companies and about 50% of the smallholders. The remaining 50% of the smallholders cultivate the tiger shrimp (Penaeus monodon) extensively. While the potential for Indonesia's shrimp aquaculture is high, the traditional mode of farming employed by smallholders constrains productivity, profitability, and environmental sustainability. Developed countries are increasingly monitoring the quality of shrimp imports for transparency and traceability, drug and chemical residues, and environmental damage. As awareness of food safety grows among consumers, Indonesian shrimp producers must improve traceability along the shrimp value chain and raise the standards of hygiene in shrimp processing. Only large shrimp producers, hatcheries, and feed suppliers currently comply with MMAF's framework for Indonesian Good Aquaculture Practices (INDOGAP). MMAF will need to expand the use of its sistem telusur dan logistik ikan nasional (national fish traceability and logistical system, STELINA) by farmers and other actors along the value chain if Indonesia is to maintain a strong position in international markets.

The proposed project will support four operational priorities of the ADB Strategy 2030. It is also aligned with ADB's Action Plan for Healthy Oceans and Sustainable Blue Economies, and its country partnership strategy 2020-2024 for Indonesia, (pathway 3: strengthening resilience). The Government of Indonesia's National Medium-Term Development Plan 2020-2024 promotes aquaculture and proposes to increase (i) the number of superior aquaculture production centers to 50 in 2024 from 10 in 2020, and (ii) the export value of fisheries to $8.0 billion in 2024 from $6.2 billion in 2020. The MMAF National Shrimp Farm Development Program 2020-2024 aims to increase shrimp production by 250% to 1.29 million tons by 2024 (from 527,397 tons in 2019).
Impact

Contribution of the fisheries industry to the national economy increased (National Medium-Term Development Plan, 2020-2024)
Project Outcome
Description of Outcome

Productivity, profitability, and environmental sustainability of shrimp aquaculture increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Quality and sustainability of inputs for shrimp production increased

Sustainable and climate adaptive aquaculture infrastructure and services developed

Shrimp aquaculture supply chain strengthened
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Insights and inputs of project stakeholders and beneficiaries will be considered in project design through meaningful dialogues and appropriate communication means.
During Project Implementation The project implementation will require consultation and participation of all stakeholders. Their participation, inputs, and involvement will be included in the project participation and communication plan and in other safeguard documents, as required.
Business Opportunities
Consulting Services ADB is financing consulting services for the project preparation and due diligence through the transaction technical assistance on Supporting Water Security Investments Facility (Subproject 4). Consultants with highly specialized expertise and extensive experience in aquaculture will be engaged.
Responsible ADB Officer Quincieu, Eric
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Marine Affairs & Fisheries
Timetable
Concept Clearance 27 May 2021
Fact Finding 10 May 2022 to 23 Jun 2022
MRM 19 Aug 2022
Approval 14 Dec 2022
Last Review Mission -
Last PDS Update 14 Dec 2022

Loan 4283-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2022 19 Dec 2022 - 30 Jun 2028 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 104.12 Cumulative Contract Awards
ADB 93.00 07 Jan 2023 0.00 0.00 0%
Counterpart 11.12 Cumulative Disbursements
Cofinancing 0.00 07 Jan 2023 0.00 0.00 0%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Title Document Type Document Date
Loan Agreement (Ordinary Operations) for Loan 4283-INO: Infrastructure Improvement for Shrimp Aquaculture Project Loan Agreement (Ordinary Resources) Dec 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Nov 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Project Administration Manual Project/Program Administration Manual Nov 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Procurement Plan Procurement Plans Oct 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis May 2021

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Infrastructure Improvement for Shrimp Aquaculture Project: Draft Initial Environmental Examination Initial Environmental Examination Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Bali, Banten, Central Java, East Java, Lampung, Nangro Aceh Darusalam, and South Sulawesi Provinces Draft Safeguards Due Diligence Report Safeguards Due Diligence Reports Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Sinjai District, South Sulawesi Province Sustainable Aquaculture Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Draft Community Development Framework Resettlement Frameworks Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Kedung Subdistrict, Jepara District, Central Java Province Sustainable Aquaculture Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Draft Indigenous Peoples Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2022
Infrastructure Improvement for Shrimp Aquaculture Project: Sustainable Aquaculture Cluster in Special Region of Aceh Province Draft Masyarakat Hukum Adat Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2022

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Selection of Consulting Services for Project Management and Technical Consultant Firm - Consulting Closed 03 Dec 2022 01 Jan 2023
55020-INO: Infrastructure Improvement for Shrimp Aquaculture Project Advance Notice Active 14 Sep 2022

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Infrastructure Improvement for Shrimp Aquaculture Project: Procurement Plan Procurement Plans Oct 2022